MCDF Targets Rise in Trade Growth Among Andean Region Countries With Grant

A USD315,000 grant targeting a rise in trade growth among countries in the Andean region was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governing Committee at its meeting in Samarkand, Uzbekistan on 24 September. The project will be implemented by the Development Bank of Latin America and the Caribbean (CAF).

Significant investment in connectivity infrastructure over the past decade has developed the Andean Integration (Panamericana) Corridor into a transport and logistics hub that has supported increasing trade with partners outside the region. However, the level of intraregional trade remains low, and the MCDF grant will finance a study to analyze its causes.

The study will also highlight possible intraregional trade solutions, covering investment, policy, and other enabling areas, and initially focus on Columbia and Ecuador. The aim is to lay the groundwork for action to realize greater Panamericana trade and its potential to boost competitiveness, productivity, cross-border investment, job creation, and economic growth.

The study will benchmark international best practices for enhancing the transport and logistics sector and broader trade facilitation. A key focus will be on economic cooperation and integration programs, including those which have been coordinated by International Financial Institutions (IFIs) in Asia, Africa, and Europe.

The MCDF grant will also finance a conference that will bring together governments, IFIs, developing country financers, and other stakeholders to exchange related experiences, lessons, and best practices that could be adapted to Panamericana and Latin America and the Caribbean as a whole.