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Aid For Trade and EPAs. Burgers Park Hotel, Pretoria 23-24 August 2006 Helena McLeod Regional Trade and Integration Advisor – DFID SA. Passion. Core Values – Passionate about development Passionate about trade and development coherence Increase access – RoO Finance supply response
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Aid For Trade and EPAs Burgers Park Hotel, Pretoria 23-24 August 2006 Helena McLeod Regional Trade and Integration Advisor – DFID SA
Passion • Core Values – Passionate about development • Passionate about trade and development coherence • Increase access – RoO • Finance supply response • Electorate passionate about poverty reduction
Momentum • Commission for Africa – generating momentum for Africa to influence OECD • UK presidencies of EC and G8 – credibility “Year of Africa” • G8 Summit commitments – new money for trade • Commitments on Aid For Trade
Aid For Trade • No substitute for a successful Doha Round • But should not be conditional on the conclusion of the DDA – donors must deliver on their pledges • UK commitments include; • £100 per year on trade by 2010 • Increase by 40% to £370m by 2007 • Held accountable by civil society and electorate • Require strong monitoring to ensure additionality • Preference for improving existing vehicles delivery and effectiveness
A4T and EPAs • A4T umbrella – EPA development finance is part of A4T (EPAs a UK priority) • Haven’t been linked in UK or EC • Guiding principle – EDF shouldn’t be conditional on EPA outcomes • Positive aspects of linking financing to EPAs = regional angle
A4T financing • Paris Declaration on Donor Harmonisation priority • Driven by national priorities (PRSPs, national strategies) • Financed through budget support or sector support • Enhanced Integrated Framework • Africa Infrastructure Consortium
DFID considerations • Doubling aid but cutting 10% staff • By 2010 same level resources as World Bank but 1600 staff v 13,000 in Bank • Having to work through others IFIs, EU etc • Difficult to increase trade capacity in country • Harmonisation means stepping back from certain sectors • Could see one or two donors per country engaged on trade • Implications? Who leads? EU? DAC principles.
Summary Priorities • DFID • Get EU money working better • Get donors to deliver on their pledges; G8 $4b; EU member states and EC Euro 2b; UK £100m per year • African countries • Mainstream trade (PRSP evaluation) • Strengthen trade ministries • Costed A4T plans