South Centre Analytical Note - April 2006

SYNOPSIS

The underlying message of this paper is that aid for trade is important to mitigate trade-induced adjustment costs and to bolster supply-side capacity in developing countries. However, aid is only second-best to balanced, fair and equitable trading rules. The Aid for trade architecture should, thus, be crafted to make trade supportive and not a substitute to a pro-development outcome in the multilateral trade negotiations.

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