1. GM-MAT and PTA-FAME Status of implementation as of 21st October 2011

2. Background 1 • Aid for Trade facilitates the development of integrated cross-sectoral national trade development strategies • The trade ‘sector’ (hence the Trade Ministry) provides the national framework on trade policies and planning • There is a trade component in every sector; these components need to be harmonized with the national trade development framework

3. Background 2 • Donors have been providing support to trade activities under different sector programmes, which contributed to strengthen the sectoral divide and to fragment donor contributions. • Through AfT donors agreed to fund trade activities only if integrated into national development strategies – and by increasingly using multi-donor trust funds and programme-based approaches, rather than sectoralprojects. • Once trade-related needs of all sectors are coordinated and articulated coherently into national development strategies, donors will also be able to use their resources more effectively.

4. GM MAT Programme Overall objective Mobilize policies, technical and financial resources, for the development of agricultural value chains addressing environmental sustainability, climate change and food security issues as a way to achieve poverty reduction. Specific objectives • Promote the alignment of trade, agriculture, and environment policies and planning frameworks • Improve coordination, complementarity and harmonization of trade interventions for agriculture, SLM, and food security by fostering synergies between sectors at country level; • Support the design, development and financing of cross-sectoral value chain projects addressing environmental sustainability, and food security issues

5. GM-MAT and IFAD GM-MAT can help to increase IFAD’s capacity to work with trade institutions, and therefore to use their expertise and networks to: • Facilitate the matching of production with market demand • Improve market linkages along value chains • Provide producers with a broad range of technical assistance services for business development • Improve capacity of smallholder farmers to access new markets • Improve capacity of smallholder farmers to access trade finance • Facilitate the engagement of private sector • Increase capacity of Agriculture Ministries to inform the development of national trade strategies and related policies and implementation plans, thus creating the enabling business conditions for farmers.

6. GM-MAT – PTA-FAMEJoint activities and Budget Joint activities will be carried out in 3 selected countries, and will include: • A review of the trade priorities within the major policy frameworks and processes related to trade and agriculture at the national level, to define a common agenda on trade, agriculture, and food security; • A consultation between Agriculture, Environment and Trade Ministries to validate the common agenda and establish priorities among the proposed actions, including value chains to develop; • A value chain development concept note, drawing on the priorities identified, and drawing on the AfT/EIF process, to be used as a basis for project development.

7. Activities as per October 2011 As per 20thOctober 2011, the following activities have been undertaken: • Consultations with IFAD CPMs have been carried out, and interest was expressed in the Pilot Initiative in the following countries: • Mali, Nigeria, Senegal, Tanzania (?) and Uganda. • GM has undertaken policy review and preliminary consultations with IFAD Project Coordinators at country level. • Based on these consultations, specific activities have been identified, and a country specific budget has been prepared, as illustrated in Table 1. The activities’ implementation is foreseen to take place starting from November 2011, pending endorsement of IFAD CPMs.

8. Budget as per October 2011