Trade is an important catalyst for growth and poverty reduction in developing countries. But successful integration of developing countries into world trade requires more than better market access and strengthened international trade rules. In order to fully exploit the benefits from trade, developing countries also need to remove supply side constraints and address structural weaknesses.
The objective of Aid for Trade (AfT) is to provide support to developing countries to overcome barriers so that they can participate in international trade effectively and in turn enhance economic growth and reduce poverty.
Categories of AfT according to definitions developed by Task Force for AfT include support for
technical assistance for trade policy and regulations,
trade related infrastructure,
productive capacity building,
implementation and adjustment to trade-related reforms and liberalization,
other trade-related needs including smooth integration into the world trading system and implementation of trade agreements.
Monitoring framework includes four main elements: demand (mainstreaming and prioritizing trade in development strategies), response (AfT projects),
outcomes (enhanced capacity to trade), and impacts (improved trade performance and reduced poverty).