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Jakarta Post

Trade without aid: Will it work for Indonesia?

  • Alya Mahira and Michelle Limenta

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PREMIUM
Jakarta   /   Fri, July 24, 2020   /  08:37 am
Trade without aid: Will it work for Indonesia? US Trade Representative Robert Lighthizer speaks at a Senate Finance Committee hearing on President Donald Trump's 2020 Trade Policy Agenda on Capitol Hill in Washington, US on June 17, 2020. (Anna Moneymaker/Pool via REUTERS/-)

Trade is a powerful engine for economic growth and poverty reduction, but harnessing its power may be difficult for developing and least-developed countries. Most of them face a range of supply-side and trade-related constraints that hinder their ability to engage and compete effectively in international trade. To address this issue, the World Trade Organization (WTO) launched the Aid-for-Trade initiative in 2005 to assist developing and least-developed countries to maximize the benefits from trade opportunities, and integrate into the multilateral trading system. In general, most of Aid-for-Trade is disbursed bilaterally by donors, or through multilateral and regional finance and development organizations such as the World Bank. Indonesia’s new income status has the potential to affect the country’s eligibility to receive trade aid and preferential treatment. On July 1...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.