Aid for Trade Impact on Developing Economies Assessed
A new OECD-WTO review finds developing economies now account for nearly half of global merchandise exports, but Least Developed Countries remain stuck at one per cent, prompting calls for stronger private partnerships to multiply aid impact.
The Global Review 2026 examines the impact of nearly USD 795 billion in Aid for Trade investments since 2006. These funds aim to help developing economies and Least Developed Countries build the infrastructure, skills, and institutions needed for global trade.
Challenges and Progress
Despite two decades of Aid for Trade efforts, African economies and LDCs have not seen a qualitative expansion of their exports. WTO Director-General Ngozi Okonjo-Iweala noted their shares in global exports remain around 3 and 1 per cent respectively. The OECD-WTO report launched at the review session reveals a mixed picture of progress.
Developing economies as a whole now account for nearly half of global merchandise exports. This is a significant increase from 38 per cent in 2006. Their share of global services exports has also risen from a quarter to a third. This points to a positive contribution from Aid for Trade, despite uneven progress across different economies.
Future of Aid for Trade
The report highlights a pressing need for stronger partnerships and mobilizing additional resources. OECD Secretary-General Mathias Cormann stated that twenty years of Aid for Trade show it works. With public budgets under pressure, stronger partnerships-especially with the private sector-are needed so every aid dollar multiplies its impact. JICA President Akihiko Tanaka emphasized building mutual trust through Aid for Trade and the importance of long-term investments in quality infrastructure, institutions, and human capacity.
Projections indicate bilateral Aid for Trade could fall by around 22 per cent between 2024 and 2026 as development finance comes under pressure. The report stresses the importance of channelling scarce resources where they are most needed. It also shows the critical task of mobilizing additional resources for trade, including from the private sector. Aid for Trade currently accounts for one-fifth of total Official Development Assistance, comprising both grants and concessional loans.
Upcoming Events and Initiatives
The review will feature more than 30 member-led sessions showing partnerships in action. These will cover value chain development, trade facilitation, and efforts to strengthen trade capacities. Discussions will also cover services and digital trade, including the role of artificial intelligence in making trade more inclusive.
Several publications will be launched alongside the report. These include a challenges and success stories magazine capturing over 20 success stories from WTO members and partners. The Asian Development Bank will launch its report "Aid for Trade in Asia and the Pacific 2026: Unlocking Opportunities in Services and Agrifood Value Chains." A publication on South-South and triangular cooperation will be co-published by the WTO and the UN Office for South-South Cooperation.
A Trade Solutions Clinic will feature experts from institutions including the European Bank for Reconstruction and Development, the International Finance Corporation, and the International Growth Centre. The Global Trade Helpdesk, the Global Alliance for Trade Facilitation, the St Gallen Endowment, and the WTO Chairs Programme will also participate. Also, a Trade and Taste Corner will show food and wellness products from developing economies and LDCs, featuring the Enhanced Integrated Framework, the Standards and Trade Development Facility, FAO, and UNIDO. The future of the initiative hinges on mobilizing additional resources and forging stronger partnerships to extend its reach.
