EU's Aid for Trade Falling Short: Missing the Target

A recent EU audit reveals the bloc may not meet its 2030 target of allocating a quarter of trade-related aid to the least developed countries. Launched in 2005, the 'Aid for Trade' initiative faces challenges like declining funding rates, poor infrastructure, and unmet economic sustainability in target countries.

The European Union is unlikely to meet its goal of funneling a quarter of its trade aid to the world's poorest countries by 2030, a report from the EU's auditors announced on Tuesday. This comes amid a declining trend in funding, according to a recent study.

Initiated by the World Trade Organisation in 2005, the 'Aid for Trade' program aims to assist poor nations with projects-from building infrastructure like roads and ports to enhancing trade policies and regulations. Yet, EU auditors have found a shortfall, noting a decline in allocations.

Bettina Jakobsen, overseeing the audit, called for a reassessment of targets and commitment from the EU to address the issue. As trade challenges continue globally, African countries face particular hurdles, including infrastructure and financing. China, however, has offered to ease trade by removing duties on their exports.

(With inputs from agencies.)