Trade Policy Development - Denmark

The project aim was to increase and consolidate the capacity of democratic and representative industrial organizations in the MENA region and thereby promote reforms for democracy, improved entrepreneurial environment, and formalization of the labor market, which can lead to a more inclusive economic growth and job creation. Furthermore, the project has targeted the establishment of sustainable partnerships between partners and the central political stakeholders as well as the development of common educational platforms and activities.

This grant will support Tax Justice Network Africa’s (TJN-A) efforts in carrying out its vision of a new Africa in which tax justice prevails and ensures an equitable, inclusive and sustainable development, which enables all its citizens to lead a dignified life as stated in TJN-A's strategic plan for 2013-2016. The work on TJN-A focuses on increasing the transparency and accountability of the global and national financial systems, enhancing the voice and participation of African citizens to shape tax policies, building the capacity of civil society to engage African governments in tax policy and address regressive domestic tax systems. The grant is a three-year grant of 3 million DKK and part of the government’s new implementation plan on tax and development launched in April 2015.

The project on BEPS, i.e. Base Erosion and Profit Shifting, aims to combat double non-taxation by providing countries the tools needed to ensure that profits are taxed where economic activities generating the profits and where value is created, while at the same time give business greater certainty by reducing disputes over the application of international tax rules and standardizing requirements. This grant will support the OECD in implementing its Strategy for Deepening Developing Country Engagement in the BEPS project, which was welcomed by the leaders of the G20 Summit in November 2014. The strategy for involving developing countries consists of the three main pillars of: (i) direct participation in the Committee on Fiscal Affairs and its subsidiary bodies on the BEPS project; (ii) supporting regional networks of tax policy and administration officials in five specific regions; and (iii) capacity building support through mentoring and the development of toolkits.

The U-Growth II Programme 2014-2019 (DKK 500 million) supports two organizations, the aBi Group (aBi=Agribusiness Initiative) and the Uganda office of Trade Mark East Africa (TMEA), and a project supporting economic revitalization in northern Uganda i.e. “Recovery and Development of Northern Uganda Component (RDNUC).” The focus of the later is on improved farm productivity and yields, and commercialization. Although not directly linked to trade and export, the support for northern Uganda comprises rural infrastructure including rural roads.

The Danish support for TMEA (DKK 45 million plus possibly an additional DKK 18 million from the unallocated funds under the programme) is focused on the implementation of the so-called “Electronic Single Window” (ESW) aiming at reducing cross-border transit time and costs, increasing revenues, and improving transparency and security in cross-border trade/supply chains. Furthermore, increased alignment and harmonization of Ugandan laws and policies with those of EAC is expected together with the improved capacity of the private sector and civil society actors to influence regional integration policies and practices positively.

aBi supports private sector actors in six selected value chains (coffee, oilseeds, cereals, pulses, horticulture for export and dairy) aiming at making the value chains more competitive and profitable. Cost-sharing grants are provided to enhance production and productivity, including training farmers in good agricultural practices, use of agro-inputs, quality assurance and post-harvest handling. Interventions to establish value-addition facilities, support marketing, and addressing issues needed to meet end-market requirements adequately, including export markets) are also supported.

The NAMA Facility was set up by Germany and the UK in 2013. The overall objective set out for the facility is to facilitate transformation towards low carbon pathways in developing countries concerning the internationally agreed goal to keep global warming below two degrees Celsius compared with pre-industrial levels. This facilitation is achieved by supporting the realization of ambitious and innovative NAMAs (National Appropriate Mitigation Actions) in developing countries and emerging economies.

Through the NAMA Facility, Denmark seeks to attribute to demonstration short-term of successful leverage of finance for implementation of ambitious and transformational NAMAs. The facility provides funding for technical support and institutional and regulatory capacity development combined with or closely linked to development financial instruments to leverage public and private finance.

The NAMA Facility is at present the predominant international financing mechanism for supporting the implementation of NAMAs in particular as the Green Climate Fund is not yet operational. The UK and DE have up until now allocated Euro 119 million and both countries pledged additional funding for 2015/2016 in December 2014 at COP20 in Lima. The Facility is open for other multi- and bilateral donors. Through Climate Envelope 2014 Denmark joined the NAMA Facility as an additional donor providing financing amounting to DKK 73.8 million for a third call announced by the Facility at COP20. The EU Commission also contributed Euro 15 million to the Facility.

So far five projects in Colombia, China, Kenya, South Africa And Guatemala has been selected by the board and have started the in-depth appraisal phase. By the end of 2015, the NAMA Facility had five full-fledged projects under implementation from the previous calls in Costa Rica, Indonesia, Chile, Peru and Mexico and other projects in Thailand, Burkina Faso and Tajikistan are being developed.