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Aid for Trade in Asia and the Pacific Its Role in Trade-Driven Growth

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Aid for Trade in Asia and the Pacific Its Role in Trade-Driven Growth Aid for Trade in Asia and the Pacific Its Role in Trade-Driven Growth Report from the Co-Chairs of the Regional Technical Group on Aid for Trade for Asia and the Pacific Aid for Trade in Asia and the Pacific Its Role in Trade-Driven Growth Report from the Co-Chairs of the Regional Technical Group on Aid for Trade for Asia and the Pacific © 2012 Asian Development Bank All rights reserved. Published 2012. Printed in the Philippines. ISBN 978-92-9092-379-4 Publication Stock No. RPT113845 Cataloging-In-Publication Data Asian Development Bank. Aid for trade in Asia and the Pacific: Its role in trade-driven growth—Report from the co-chairs of the Regional Technical Group on Aid for Trade for Asia and the Pacific. Mandaluyong City, Philippines: Asian Development Bank, 2012. 1. Development assistance. 2. Trade. 3. Asia and the Pacific. I. Asian Development Bank. The content of the report is based on discussions at several meetings of the Regional Technical Group (RTG) on Aid for Trade for Asia and the Pacific. It also took into account external consultations at the World Trade Organization, Asia-Pacific Economic Cooperation, and other forums. The report was compiled and finalized under the responsibility of the RTG co-chairs and does not necessarily reflect the views of either the RTG member countries or the organizations. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB. Note: In this publication, “$” refers to US dollars. Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 www.adb.org For orders, please contact Department of External Relations Fax +63 2 636 2648 [email protected] Printed on recycled paper. Contents Tables, Figures, Boxes, and Appendixes v GG`V01:QJ vii Foreword by ADB President Haruhiko Kuroda and WTO Director General Pascal Lamy ix Preface by RTG Co-chairs Tomochika Uyama and Sok Sopheak x 6VH%0V%II:`7 xi J `QR%HQJ 1 The Importance of Trade and the Role of Aid for Trade 1 Purpose of the Report 1 Structure of the Report 2 `:RV555:JR`! 4 Emergence of “Factory Asia” 4 `:RV::JJ$1JVQ``Q1 .1J1::JR .V:H1H :JR::H Q`1J1::JR .V:H1H`Q1 . :`10V`Q`V$1QJ:CJ V$`: >1Q?:H1H “First Face”: High-Performing Asian Economies 11 “Second Face”: Resource-Rich, Low-Income, and LDCs and Small States 12 VQ$`]'%GR':H1H /VG7>'QJR?:H1H ': VQ`C:77]`:RVV``IQ1 . 7`/ :JRJ``:%%VVH1VJH1V Uneven FDI Flows 15 QG/]I '%GQ07 '% :1J1J$`R<Q1 .1J1::JR .V;'QJR:HV `R<Q1 ..`%>] 6]/I]VJV :`10V`Q`V$1QJ:CHI V$`: iii iv Contents `Q``C! Mapping Aid for Trade Flows 24 G%Q``:RV J%7Q``:RV `Q``:RVQJ .V`7&$C]])@VRG+C: $ 7]]I]:J 1R`Q``V 1R`Q``I]I :] Way Forward 44 Appendixes 47 References Tables, Figures, Boxes, and Appendixes Tables `:RV Q:5Q 'G%%6]QQ 6]5Q '6]5`L5'G%%6]5Q Q`V1$J1`VH J0VI Q:5Q Q077% 1J1::JR .V:H1H 1R`Q``:RVCQ11J1::JR .V51Q'/% 1R`Q``Q``:RVCQ1 1R`Q``:RVCQ11J1::JR .V5]>I] `/]7>% `:RV7G=V:JRJ%I `G `I Figures 1 Emergence of Factory Asia 5 1::JR .V;'6]5Q :JR1J1::JR .V5$I `Q1 .Q``VV`:RV$`I 1J1::JR .V:H1H .V1Q:HVQ``:RVV``I:H1H : '6]5'QJR5Q G '6]5</'I': 5Q 'VQ`Q :CQ`V1$J1`VH J0VI 1J .V1Q5Q `5'QJR5Q `Q1 .Q`1R`Q``:RVCQ11J1::JR .V5$ 1R`Q``:RVCQ17V$1QJ:C1G% 1R`Q``:RVCQ1]/]5$ 1R`Q``:RVCQ1]QQ`5$ 1R`Q``:RVCQ11J1::JR .V5G77]5Q Q1:`]:]]Q:H. Q1R`Q``:RV Boxes J``:%%] `:RV:H1C1 :7I] the Perishable Food Product Markets 15 2 Singapore —An FDI Success Story 17 /TGQ`1J$Q`1R`Q``:RVCQ1 v vi Tables, Figures, Boxes, and Appendixes Appendixes 1Q/%7/: 1R`Q``': V$1V R % `;]]Q:H. Q1R`Q``:RV R %];1R`Q``': 7 R _];1R`Q``': 7 R ';1R`Q``': 7 R `'/;1R`Q``': 7 R Q`CR`:RV`$<:;1R`Q``': 7 2-7 Asian Development Bank's Approach to Aid for Trade 51 `50]I5: Q` R `:RVJR1H: Q``Q`1::JR .V:H1H R `Q1 .JR1H: Q``Q`1::JR .V:H1H R Q`V1$J1`VH J0VI ]I 1 1J1::JR .V:H1H R HHV1QJ: V:JR`VV`:RV$`I^_7 1J1::JR .V:H1H R Q07:H1H R 1R`Q``:RVCQ1`Q`1::JR .V:H1H 1R`Q``/'% R '`/7 R '`TQ$`IQ`V$1QJ:CJ V$`:'%]]^'_ R G]`]'7 I= R ]VHQJ%= R HI/G7<7G':TV `]/ R >'%]]Q`:RV1J:JHV:H1C1 :Q$`I R ';'`/I]I `= R %;'%]]Q/% `1V R ''%]]Q`:RVHHVCV`:^'_`I R >;V$1QJ:C`/]7>%Q$`I R `I%77R`]V``= R _/;7<`G%%Q$`I R /IG;`']]^`']_ R @ ;': V$1H`:RV7I1@ R G% V`:C`:RV7 :JHV`=`I^G_ R //V]I .`%/]: R V`'` V$`:^_ R _]T`I_V R % `'%]]/Q:I1JJRQJV1: R '/`/]7>%Q$`II GIG< `Q` .VV$1QJ:CVH.J1H:C`%] Abbreviations ADB Asian Development Bank AfT Aid for Trade % % `:C1:J$7Q`J V`J:]I / 1::JR .V:H1HHI/]: '`U '`IIG]%];]%G/5_]5]%G of Korea '`U '`UIIG]%% `55`V:C:JR '` QH1:'%`^%>%%I /IG55<];I:]%G5G75G7I5 ]]5']55`I_ CEPEA Comprehensive Economic Partnership in East Asia DMC developing member countries EAFTA East Asia Free Trade Area EU European Union FDI foreign direct investment FTA Free Trade Agreement `VV`:RV`V:Q`1::JR .V:H1H GATS General Agreement on Trade in Services $`I]% VJV`:C$`I QJc:JR`:RV ` $`QJ:]% GMS Greater Mekong Subregion / 1J`III%:7 G J V`J:G:7% 1J`I7 _>/ _]>@Q`J V`J:/]: _/ _] V`J:/]:7 < <];I:]%G G` I R`:0Q`VRJ: G`/ I%]: G I%%VHI NAFTA North American Free Trade Agreement ` 7%<VRVHI7 ]I :1 :JHV / `$:J1:Q`HI/]:]I / ];]%G/ vii viii GGV01: R&D research and development ROO rules of origin RTG Regional Technical Group SPS sanitary and phytosanitary standards ' ]cV`VJ `'/ `HI'/IIQ`1::JR .V:H1H US United States ' ': V$7Q`J V`J:]I ' ': V`:RV]VVJ :V Q`CR`:RV`$<: Foreword `:RVG<:.:RQJV1QJRV``Q`1::JR .V8Q`I%Q` .V] _%V` HVJ%75 `:RV .: ]V`VR .V `; VHI $`8 .V `% 1 : :H 7 1: T %]]7_%7]% QH%I18<G<:.:R`10VJ1J `RV$1QJ:C `:RV:15V6]HI]6%]]7H.:1J:JR]%JV 1@VG@GQ` .V `V;RV0V]I8G I]:J5 `:RV7II.:]R`:1%VRQ`I %]V75IIGIIR%I1J .V1`Q1J`1$.8 V6] `:RV.:G:@V7I Q`G% $`Q1 .1J .V`;C:`$V :JR] VHI51VI% %V .VG Q`1JH`V:VR `:RV:`V:0G Q:CCH% `1V1J1: :JR .V8IV6 `Q`I]Q0I 1J .V `:RV]IQ`CQ11JHIVHI8 Furthermore, small, landlocked, remote, or island economies remain isolated from the global `:R1J$7 VI8%V`]G7QGIG8%6 R`Q`R`8 `:RV1:]: RQ`RVJHIIH1:C781R:CQJVH:JJQ H`V: V `8J]]] V `V% Q7 VJ01`I :JR ]V G% I V H:J :`:H `Q`V1$J R1`VH 1J0VI5 51`IVR]]75G%G]%:JRV6]H]75:%%78 .1V$1QJ:CVH.J1H:C`%]V]JR .: :`V$1QJ:C]]Q:H.G@VRG7J: `: V$1V 11CC%V:0G:1 :JHV1%I Vc7`Q`I6I%IG8 :CQ.Q1 .: 1VI% HQJ% Q@HQJHV1QJ:CJ:JHV`Q`1R]=:JR]Q$`I11 . .1$. `: V Q` `V%8 1R `Q` `:RV I% HIG HQJHV1QJ:C J:JHV 11 . 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