Friday, July 4, 2025

WTO secures new funding for least-developed countries’ trade development

World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala underscored the critical need for robust partnerships to empower Least-Developed Countries (LDCs) through trade, at a high-level side event held during the 4th International Conference on Financing for Development in Sevilla, Spain. The event marked a significant milestone with new funding commitments announced for the Enhanced Integrated Framework (EIF) Phase Three, an exclusive Aid for Trade programme dedicated to LDCs.

Co-organized by Djibouti, Finland, and the Executive Secretariat of the EIF, the event brought together ministers and senior representatives from LDCs and donor countries to strengthen international partnerships in support of LDC trade and investment priorities. The vision for EIF Phase Three, set to commence in October 2025 with a target of USD 200 million, aims to deliver catalytic and transformative impact for LDCs through trade.

Several donors pledged new contributions to the EIF Trust Fund, providing strong momentum for the upcoming phase. Sweden announced SEK 75 million (approx. CHF 6.3 million), Denmark DKK 20 million (approx. CHF 2.5 million), Norway NOK 12 million (approx. CHF 0.9 million), France EUR 300,000 (approx. CHF 0.3 million), and Liechtenstein CHF 50,000. These pledges build on earlier commitments from Finland (EUR 2.5 million / approx. CHF 2.3 million) and the United Kingdom (GBP 400,000 / approx. CHF 0.4 million).

In her opening remarks, DG Okonjo-Iweala highlighted the growing disparity between development needs and available resources, emphasizing the EIF’s enduring relevance in helping LDCs leverage trade. She noted that the EIF partnership has “gone from strength to strength,” supporting USD 1 billion in LDC exports and enabling hundreds of thousands of small farmers and entrepreneurs to improve their livelihoods. She shared a compelling success story of Sittina Farate Ibrahima from Comoros, whose biocosmetics business, developed with EIF support, now exports 80% of its products to Europe, exemplifying the transformative power of Aid for Trade.

Looking ahead, the Director-General welcomed the shared ambition behind EIF Phase Three and its USD 200 million funding target. “We hope we can count on all the partners in bringing this vision to life,” she stated, anticipating the event would serve as “a springboard for a high-level launch of the next phase of the EIF partnership at the 14th Ministerial Conference.”

The discussions, which focused on priorities for EIF Phase Three running up to 2031, included insights from ministers from Djibouti, Finland, and Guinea, alongside senior representatives from Sweden, Denmark, France, Germany, Norway, Liechtenstein, and the United Arab Emirates. UNCTAD Secretary-General Rebeca Grynspan delivered closing remarks.

H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance of Djibouti, emphasized the timely arrival of EIF Phase Three from the perspective of the WTO LDC Group. “What we need is a mechanism that catalyses our efforts, brings innovation to respond to our evolving trade and investment priorities, supports stronger institutions, and helps unlock new partnerships,” he said. “For many of our countries, including my own, the EIF has not only been a financial and technical partner. It has also been a catalyst for inclusive economic transformation.”

H.E. Ville Tavio, Minister for Foreign Trade and Development of Finland, reiterated Finland’s longstanding support for multilateral efforts to strengthen LDC trade capacities. “We believe in the transformative power of trade as, when matched with targeted support and strong local ownership, it can unlock lasting development impact,” he stated. “The EIF has consistently proven to be a trusted and effective partner for LDCs. As it enters a new phase, we see an opportunity to deepen its reach and amplify its role in advancing inclusive and sustainable growth. Finland is proud to contribute to this next chapter.”

A follow-up pledging and partnership event is scheduled for September 2025 on the margins of the WTO Public Forum in Geneva, aiming to further mobilize support for EIF Phase Three.

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