Shaping trade and investment for sustainable development

Context

Trade is viewed as the key to economic growth and prosperity. When structured appropriately, it contributes to sustainability, employment and poverty reduction. This harbours opportunities, as the share of developing countries and emerging countries in global trade has increased in recent decades.

However, there are also risks associated with trade. Opening up markets can lead to more foreign competition for domestic producers as well as lower customs revenues, poor labour conditions, negative environmental impacts and increased gender inequality. If trade can be made sustainable, the risks minimised and the potential exploited, it will be a key lever for implementing the 2030 Agenda for Sustainable Development.

Objective

Developing countries are integrated into global value chains through a rules-based, open and fair trade and investment system. They make better use of the opportunities presented by global trade.

Approach

The project supports the implementation of the German strategy for trade-related development cooperation and the Marshall Plan with Africa. It supports the German Federal Ministry for Economic Cooperation and Development (BMZ) in two priority areas:

1. Shaping trade-related development cooperation: The project provides advice on international commitments as part of the World Trade Organisation's Aid for Trade initiative and on pro-development digital trade policy. Other topics include the African Continental Free Trade Area (AfCFTA), fair trade and environmental aspects.
2. Anchoring development policy aspects in international trade policy: The focus is on the Economic Partnership Agreements between the European Union (EU) and countries in Africa, the Caribbean and the Pacific as well as trade agreements with other developing countries. The project supports BMZ in integrating sustainability standards into the EU's trade instruments. It commissions studies and obtains current experience and assessments from projects.

Last update: December 2023