As the global economy has become more integrated than ever, trade goods and services has significantly increased. Barriers to trade are gradually being lowered, which has created ideal opportunities for export and growth, including for developing countries. However, greater commitments to trade liberalisation do not automatically translate into more substantial benefits for all countries, sectors and members of society. Least developed countries in particular have gained little from trade increases, and in some cases have even lost due to trade liberalisation. Where trade has generated growth, it has often not been ‘pro-poor’ and thus has not led to sustainable development for all.

‘Trade for development’

German development cooperation advocates a pro-development trade policy. GIZ supports partners worldwide in their efforts to achieve greater benefits from global trade by strengthening their negotiation capacities and their capacities to trade. It is important to analyse the positive and negative implications of trade agreements in order to exploit potentials and minimise risks during the negotiation and implementation processes. Domestic reforms triggered by trade that affect markets and institutions must be carefully managed. GIZ supports developing countries in their efforts to diversify their exports, comply with health and quality standards, move up the value chain and overcome unnecessary red tape and costs of trading.