International Economics is supporting the European Commission in analysing the factors influencing the allocation of EU Aid for Trade (AfT) to Least Developed Countries (LDCs).
The project is being implemented under the TPSDE Facility III, funded by the European Commission.
Launched at the World Trade Organisation in 2005, the AfT initiative aims to help developing countries – particularly LDCs – build the trade capacity and infrastructure needed to benefit from global trade. The EU translated this commitment into the EU AfT Strategy in 2007, which was updated in 2017 with a target to allocate 25% of total EU AfT to LDCs by 2030.
As one of the world’s leading providers of AfT, the EU and its Member States continue to play a key role in supporting trade-related development. In this context, International Economics is conducting a study to review recent trends in EU AfT allocations to LDCs and to provide analytical insights that can inform ongoing reflections on the implementation of the EU AfT Strategy. Based on this analysis, the project will provide evidence-based recommendations to support the European Commission in strengthening the effectiveness and strategic focus of EU AfT for the world’s most vulnerable economies.
Our Team will analyse the EU AfT commitments to LDCs between 2014 and 2024, focusing specifically on funding from the European Commission and the European Investment Bank. Through a combination of quantitative data analysis and qualitative review, the Team will assess patterns in funding allocations and explore factors that may influence how AfT resources are directed towards LDCs. The analysis will also consider broader policy priorities shaping EU development cooperation in the trade area. The findings will provide insights to support ongoing policy dialogue and help inform future efforts to strengthen the impact and strategic orientation of EU AfT for LDCs.
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