Aid for Trade in Asia and the Pacific: Leveraging Trade and Digital Agreements for Sustainable Development
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Aid for Trade in Asia and the Pacific - Asian Development Bank
PART I
AID FOR TRADE LANDSCAPE
1. Aid for Trade in the Context of COVID-19
The coronavirus disease (COVID-19) pandemic revealed weaknesses in the international trading system. Trade performance was severely impacted by supply chains disruption and labor shortages. There were production delays and economic woes across the world. The pandemic also exposed structural issues related to aid for trade support programs as fiscal policies and the traditional aid for trade assistance proved to be insufficient to support trade recovery. In the last 2 decades, most of aid for trade has been directed toward economic infrastructure. Yet, the global trade landscape has changed: bilateral, regional, and plurilateral trade agreements have increased in number and scope, countries have relied on trade policy measures to respond to crisis, and the growing importance of the digital economy creates new challenges. These changes highlight an overdue need to refocus the aid for trade program. Developing countries need support in soft
infrastructure to be provided with the necessary policy and regulatory tools to effectively reap the benefits of international