United Nations Economic Commission for Europe

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Aid for Trade
Bringing Countries
with Economies in Transition Closer to
World Markets
United Nations Economic Commission for Europe
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Poverty in the UNECE
In Eastern Europe and Central Asia, many still
struggle to meet their most basic material needs

In some countries, poverty rates are as high as
in LDCs
United Nations Economic Commission for Europe
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(No Transcript)
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• The poor in transition economies also have to
  face problems due to
• Climatic conditions that make warm clothing,
  housing and heating essential
• Population aging, meaning that fewer children are
  there to support the poor
• Economic transition which has weakened social
  institutions

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Trade - an engine for growth
Ireland GDP per capita 1988 10414 US
2006 41925 US
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International Trade Can Bring NEW
OPPORTUNITIES FOR THE POOR

• Aid for trade can help to realize this goal by
• Identifying key trade development objectives
• Bringing new resources to priority areas
• Creating momentum

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Geographic and economic distance result in high
costs

To export one container
From Tajikistan 3000 USD
From Morocco 600 USD
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3 Priorities related to UNECEs work
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Trade Facilitation

• Simplified and harmonized processes, procedures
  information flows for
• Buying
• Shipping
• Paying
• International trade
• AND
• Domestic trade (suppliers)
• Advance trade information
• Reduced trading costs and economic distance
• A globally more competitive economy
  

An important area for Aid for Trade
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Full players not just standards-takers

• Participation in standards setting WTO
• Efforts to comply with norms standards
• Use of voluntary international standards

Aid for Trade to support
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Transport upgrading
Large capital investments can remove bottlenecks
to trade. Priority should be given the
international routes that landlocked countries
depend on.
Regional and interregional policy coordination to
cut transport costs times (TIR carnets, border
crossing facilitation) and improve services
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Next Steps

• Transition economies need to become involved
• Sub-regional as well as national trade needs and
  priorities must be addressed
• A supporting coalition of UN and regional
  organizations plus country groupings needs to be
  identified
• A matrix of existing needs analyses is required
  to identify gaps and form the basis of
  discussions
• Sub-regional meetings followed by a Ministerial
  for transition economies?

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The UNECE is ready to assist in developing and
coordinating the partnerships necessary for
moving this important initiative forward