Trade is key when it comes to boosting economic growth and reducing poverty. We work in this area with governments and authorities in the countries with which we co-operate, as well as with regional and global organizations. Trade-related development co-operation covers the various factors and activities that help a country benefit from the international trade system as a tool for sustainable development and as a way to combat poverty.
Empowering countries in international contexts
Increased trade can have both positive and negative social and environmental effects on different groups of poor people. Changing trade regulations can rework the game plan for a country on the commerce front. On the one hand, companies can have a greater chance to expand both within and outside a country’s borders, which is positive for employment. On the other hand, competition from other countries increases. At best, this means that companies become more efficient, and invest in new technology and new ways of working. At worst, some companies can lose out, and as always, the poor are the ones who are most vulnerable to the effects of major changes.
Sida can contribute towards improving countries’ ability to make their voice heard at the World Trade Organization (WTO) and in trade negotiations elsewhere. A lack of understanding among the participants could bring disadvantages to countries in negotiations. Further, authorities in many countries do not have sufficient understanding of existing agreements to fully benefit from them. Sida can also provide support in this area. One example of this is the current co-operation with The Trade Policy Training Centre in Africa (TRAPCA). At the training centre in Arusha, Tanzania, work is being carried out to increase competence within the areas of trade policy and negotiation techniques.
Finding new markets
Sida also helps to find new markets for a country’s products. One example of this is the Export Promotion of Organic Products from Africa (EPOPA) project. Through this, between 1997 and 2008, farmers in Uganda, Tanzania and Zambia received help to switch to organic farming and find outlets for their products in an international market. More than 100,000 farmers participated in this programme.
However, increasing trade takes more than just being more open to it and having greater access to markets. Sida is therefore working to improve productivity, domestic import and export laws, infrastructure and access to capital.
