Sweden Pledges SEK27 Million To Enhance Trade In Least-Developed Countries

The government of Sweden has announced a significant financial contribution to support economic growth in least-developed countries (LDCs) through the Enhanced Integrated Framework (EIF). A sum of SEK27 million (approximately CHF2.3 million or AED2.5 million) has been allocated to the EIF Interim Facility. This strategic move aims to bridge the transitional period until a new multilateral support mechanism for LDCs is established.

The confirmation of Sweden's contribution took place during a meeting between Per-Arne Hjelmborn, Sweden's Director General for Trade Policy at the Ministry of Foreign Affairs, and Ratnakar Adhikari, the EIF Executive Director. This meeting occurred in Abu Dhabi on the second day of the WTO's 13th Ministerial Conference. The funds, provided through Sweden's development agency Sida, will bolster EIF-led projects while discussions for a new mechanism continue at the WTO.

Sweden has been a consistent supporter of EIF-led programmes, with its total contributions since 2007 amounting to approximately CHF31.8 million (SEK370 million). Hjelmborn expressed Sweden's commitment to sustainable trade and development for LDCs, emphasizing the importance of this contribution during a critical transitional period. He highlighted Sweden's dedication to preserving and enhancing progress, ensuring impactful outcomes as discussions on the future Aid for Trade mechanism for LDCs progress.

Adhikari expressed profound gratitude for Sweden's generous support, noting its crucial role in sustaining efforts to empower LDCs. He pointed out that LDCs continue to face significant economic vulnerabilities and developmental needs. Sweden's contribution is seen as pivotal in promoting sustainable trade capacity development, focusing on inclusive growth, increased export capabilities, and broader market access for LDCs.

The EIF stands as the sole global Aid-for-Trade initiative exclusively dedicated to empowering LDCs to utilize trade as a means for sustainable economic growth, development, and poverty reduction. It represents a unique global partnership among LDCs, donors, and partner agencies, including the WTO, working collaboratively to build trade capacities in LDCs.

Sweden's latest financial support underscores its steadfast commitment to sustainable development and collective action. This contribution is expected to play a key role in enhancing the achievements reached thus far in promoting sustainable trade capacity development among LDCs.

With inputs from WAM