India is 2nd largest recipient of WTO Aid-for-Trade: Report

Geneva, Jul 18 (PTI) India remained the second largest
recipient of WTO Aid-for-Trade in 2009, receiving assistance
of over USD 1.5 billion, even as global commitments to create
physical and institutional infrastructure to multiply trade
opportunities shot up to USD 40 billion, says a study.
The report was jointly prepared by the Paris-based
Organisation for Economic Cooperation and Development and the
World Trade Organisation (WTO). It was released Monday.
"Asia now ranks as the second largest regional recipient,
with USD 15.4 billion (38 per cent of total flows)," it said.
However, Aid-for-Trade (AfT) flows to India declined in
2009 from a high of USD 3.4 billion in 2008.
"So far, Vietnam has received maximum assistance under
AfT, while its other leading beneficiaries include Uganda,
Afghanistan, Nigeria, Indonesia, Pakistan, Kenya, Bangladesh,
Ethiopia and China, among others," it added.
AfT was conceived at the WTO's sixth ministerial meeting
in Hong Kong with an aim to help countries facing structural
and capacity-building constraints.
"AfT is acting as a catalyst for the private sector and
it remains unaffected by the global crisis," said Ambassador
Valentine Rugwabiza, the WTO's Deputy Director General.
"Private sector must play a dominant role in AfT projects
in infrastructure and logistics," she added.
Ahead of the third global AfT review at the WTO,
beginning Wednesday, the report attempts to showcase the
positive spin-offs arising from the growing commitments to
prioritising trade-related infrastructure.
"In 2009, Aid-for-Trade commitments reached approximately
USD 40 billion, a 60 per cent increase from the 2002-05
baseline period," the report said and suggested that "other
official flows (OOF) doubled, reaching USD 51 billion in 2009,
a likely reflection of the donor response to the global
economic crisis."
Even as Doha Development Agenda (DDA) negotiations remain
inconclusive and Europe faces a financial crisis, it said,
"Disbursements have been increasing at a constant growth rate
of between 11-12 per cent for each year since 2006, reaching
USD 29 billion in 2009, indicating that past commitments are
being met."
With the industrialised countries caught in grave fiscal
and budgetary crises, the South-South assistance for AfT
offers a window of opportunity, the WTO official said, adding
that capacity building and creating new physical
infrastructure is essential to realise the advantages of trade
liberalisation.