ࡱ> ;=:g bjbjVV 8r<r<` ` ` ` ` t t t t t 7 {!! !6666666$8};r6` !{!{!!!6` ` 6Y"Y"Y"!^` ` 6Y"!6Y"Y"40J6 YWtG":J56607^5;=";(J6;` J6@!!Y"!!!!!66Y"!!!7!!!!;!!!!!!!!! &: Third Global Review of Aid for Trade - Day 2 Summary of Discussions Session 7 - Regional Breakout Stream 2(b): Towards a Pacific Aid-for-Trade Strategy During Session 7 Stream 2b, " Aid for Trade and the Pacific: Towards a Pacific Aid-for-Trade strategy," discussions focused on the unique challenges faced by Small Island Developing States (SIDS) in the Pacific to access global markets and the role of Aid for Trade in meeting their special needs. Isolation, remoteness and fragmentation are elements that characterize countries in the Pacific. These all increase the cost of trading, thus making these economies less competitive. Because of these specific characteristics, the usual paradigm for AfT delivery has not translated into sustainable solutions for the region. A new approach is needed and efforts are being directed towards a Pacific AfT strategy, as a platform to identify the needs of SIDS and improve management and delivery of AfT. It was also largely recognized that AfT flows to the Pacific have been lagging behind other regions. While donor aid flows are generally proportional to the size and population of recipient countries, many panellists pointed out that this calculation is failing Pacific states. The representative from the Pacific Islands Forum Secretariat (PIFS) asserted that much trade-related development investment, particularly infrastructure, has fixed costs that do not vary with the population and size of recipient countries. These fixed costs, along with the unique challenges of Pacific states, necessitate a new way for calculating AfT commitments and ultimately, higher levels of assistance from donors. Panellists and members of the audience identified areas that need to be addressed by AfT: transport and communication infrastructure, the importance of building productive capacity, the need to diversify production and export destinations, and the creation of an enabling environment that would allow businesses to seize market access opportunities. DEF & ' ( 2 W Z    F Q ɾh*h=mH sH h*mH sH hMh*mH sH hTih*mH sH hKh*mH sH hJ1h*5>*mH sH hJ1h*5mH sH hJ1h*mH sH "hJ1h*5>*CJaJmH sH  -DEF  & Fgd*gd*$a$gd* 6&P 1h:prLl. 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