Increased support for trade-related development cooperation

The Government will step up its efforts to strengthen poor countries’ opportunities to trade with other countries. It is therefore proposing an additional allocation of NOK 50 million for “Aid for trade” in the 2008 international development budget.

“Increasing poor countries’ participation in international trade is important in order to create economic growth and combat poverty in developing countries. The Government wants to help to improve terms of trade for these countries so that they can reap the maximum benefit of the opportunities the international trading system offers,” said Minister of International Development Erik Solheim.

Through the World Trade Organization (WTO) Norway has promoted better terms of trade for poor countries and better market access for their products. But market access alone is not enough.

“Many developing countries are unable to participate effectively in cross-border trade due to insufficient production capacity, weak institutions, poorly developed infrastructure and limited experience and expertise. Many developing countries are  therefore calling for a concerted international effort to increase trade-related development cooperation,” Mr Solheim added.

The Government’s increased support will mainly be provided through the UN and the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries (EIF), but also in the form of government-to-government cooperation.

The Government will in the near future present an action plan for trade-related development cooperation to strengthen efforts in this field. The emphasis will be on creating a transparent and predictable framework for economic growth and trade by fighting corruption and promoting good governance in developing countries. Another key concern will be to promote women’s participation in the economy. The Government will also focus particular attention on regional trade.

“There are a number of trade challenges that cannot be resolved at the national level and that require cooperation with other countries. In particular, landlocked countries are faced with major challenges and are dependent on close regional cooperation to participate effectively in international trade,” said the Minister of International Development.

Press contact:
The Minister of International Cooperation’s on-duty press officer, tel. 91 39 50 00