Aid For Trade: Strengthening Latin American And Caribbean International Linkages And Regional Cooperation

Abstract

The development dimension of the Doha Round has meant a clear shift away from the view that trade liberalisation on its own would provide significant benefits for all developing countries(best expressed in the catchphrase trade not aid ), towards a more development-minded approach based on the idea that: (i) many countries need additional, complementary reforms and investments that can be financed by aid (aid for trade) if they are to fully exploit trade opportunities; and (ii) certain types of liberalisation may have significant short-term costs for some countries. The rationale for Aid for Trade is therefore that, while trade is considered crucial to their development, these countries continue to face serious challenges in infrastructure and supply-side constraints that are preventing them from taking full advantage of trade liberalisation.