The Role Played by Aid for Trade (AFT) in Trade Policy and ENFCC
he presence of international cooperation through the aid in connection with trade provided by countries and by multilateral and regional agents has gained rather importance in Peru since the late 1980’s and more relevance since the early 1990’s, when the country gave the first steps towards economic and trade opening. The first programs referred to projects seeking to support the supply of export products, particularly with regard to the sector of small and medium enterprises. To the extent that the State and the economic agents have been acknowledging and fostering trade as the central pillar of economic growth, the international cooperation started to channel its resources towards the public sector, involving the participation of the private sector itself and thus accompanying these initiatives. The chart below illustrates the development of Aid for Trade in Peru. 4.1. Aid for Trade in the Context of a Closed Economy In Peru, the same as in other LAC countries, there have been several initiatives of international cooperation to promote trade. Most of those initiatives were intended to support the supply of different sectors with potential. In this sense, in the late 1980’s, there were activities to promote the export of lines of products such as wood-loose, handicrafts, and tropical products among others, with the counterpart of the Foreign Trade Institute, which was in force until 1991. However, those initiatives were isolated and with a relative impact in view of the fact that the Peruvian economy was not focusing on international markets. 4.2. AFT Support to Trade Policy The AFT initiative has been of paramount importance in Peru. It has been provided by different sources such as multilateral financial institutions, multilateral, regional and sub-regional entities and by the cooperation of developed countries in the form of bilateral agreements and of economic blockages. In the same way, these resources have supported this country’s effort to develop policies and programs of structural adjustment, market access, institutional strengthening of the State, training of officers, infrastructure modernization, development of productive capacity, and the participation of the civil society and entrepreneurs, among others. Finally, these resources have been obtained from experts’ technical assistance, donations and grants, concesional loans, soft loans and financial guarantee mechanisms, among others.
Published on Sep 14, 2007
this report was prepared by the integration and trade sector (int) as a contribution to the regional meeting on mobilizing aid for trade: la...