Developing Economies Face Aid Funding Cuts, WTO Calls for Stronger Trade Partnerships

African economies still account for around 3% of global exports and LDCs around 1%, raising questions about how support can deliver more substantial changes in their export performance.

Developing economies need stronger partnerships to turn trade opportunities into jobs, economic growth and better livelihoods, WTO Director-General Ngozi Okonjo-Iweala told the 2026 Global Review on 29 October. The two-day gathering marks 20 years of Aid for Trade, bringing together ministers, international organization leaders and trade and development experts to examine its results and changing priorities. Discussions focus on helping developing economies, including least-developed countries (LDCs), build the capacity needed to participate more fully in international markets.

The review examines how USD 795 billion in Aid for Trade investments has supported infrastructure, skills and institutions across developing economies over the initiative's lifetime. A joint OECD-WTO report launched at the opening session documents expanding export participation, alongside persistent differences in how countries have benefited. Pressure on development budgets has added urgency to discussions about directing limited resources towards the greatest needs and attracting more investment from private businesses.

Okonjo-Iweala said the initiative grew from recognition that access to trade opportunities delivers results only when economies have the capacity to use them. African economies still account for around 3% of global exports and LDCs around 1%, raising questions about how support can deliver more substantial changes in their export performance. She called for an examination of what must change to make Aid for Trade more effective for poorer countries.

Export gains meet growing pressure on development funding

Developing economies now account for nearly half of global merchandise exports, up from 38% in 2006, according to the OECD-WTO report. Their share of services exports has increased from one-quarter to one-third, suggesting that Aid for Trade has contributed positively to export expansion despite uneven progress between economies. The report estimates that bilateral Aid for Trade could decline by around 22% between 2024 and 2026, increasing the importance of targeting support carefully and mobilizing additional finance.

OECD Secretary-General Mathias Cormann described connecting people and businesses to global markets and supply chains as a powerful development policy, pointing to two decades of results from the initiative. With public budgets under pressure, he called for stronger partnerships, particularly with the private sector, so that aid can attract greater investment and extend its impact. Aid for Trade forms part of Official Development Assistance, includes grants and concessional loans, and accounts for one-fifth of total ODA.

Partnerships must reflect countries' own development priorities

Japan International Cooperation Agency President Akihiko Tanaka emphasized mutual trust and sustained investment in quality infrastructure, institutions and human capacity as foundations for successful trade participation. He said lasting results depend on supporting initiatives shaped by partner countries' own priorities and aspirations. His remarks placed national ownership at the centre of discussions about how development cooperation can help countries gain more from trade.

Two thematic plenaries will examine LDC priorities and the future of partnerships, with three regional spotlights bringing perspectives from Africa, Asia-Pacific and the Americas. More than 30 member-led sessions will cover value chain development, trade facilitation, stronger trading capacity, services and digital trade, including how artificial intelligence can make trade more inclusive. Participants will also discuss partnerships involving the private sector and cooperation among developing economies, sharing approaches that respond to different development needs.

Practical support brings producers and trade experts together

A new "Challenges and success stories" magazine will present more than 20 examples from WTO members and partners, showing how tailored assistance has helped producers, entrepreneurs and exporters address trade obstacles. The Trade Solutions Clinic will connect practitioners and technical assistance providers with participants to examine specific problems and identify practical responses. Its experts will come from the European Bank for Reconstruction and Development, International Finance Corporation, International Growth Centre, Global Trade Helpdesk, Global Alliance for Trade Facilitation, St Gallen Endowment and WTO Chairs Programme.

The Trade and Taste Corner will showcase food and wellness products from developing economies, including LDCs, introducing the producers and stories behind their products. Participating organizations include the Enhanced Integrated Framework, Standards and Trade Development Facility, Food and Agriculture Organization of the United Nations, and United Nations Industrial Development Organization. The review will also launch the Asian Development Bank's "Aid for Trade in Asia and the Pacific 2026: Unlocking Opportunities in Services and Agrifood Value Chains" and a joint WTO–UN Office for South-South Cooperation publication on South-South and triangular cooperation.