ITC works with developing countries and economies in transition to achieve ‘trade impact for good.’ It provides trade and market intelligence, technical support and practical capacity-building to policymakers, the private sector and organizations that support business — termed trade and investment support institutions (TISIs). ITC delivers integrated solutions around a core set of six focus areas. These focus areas represent a coherent set of interventions with corresponding programmes that are adapted and customized into client-focused solutions.
Providing Trade and Market Intelligence
Access to trade and market intelligence is critical to international business success. The provision of innovative, cutting-edge market information to enable improved business decision-making has been at the heart of ITC’s mandate since its foundation in 1964.
ITC’s work in the area of trade and market intelligence is focused on:
- Providing trade and market intelligence in form of free, public information sources and databases;
- Strengthening the skills of local partners in effectively using trade and market intelligence to make business decisions;
- Working with local TISIs to improve their trade and market intelligence-related portfolio of services;
- Developing new and innovative approaches to competitive intelligence; and
- Facilitating evidence-based policy reform, with a focus on addressing non-tariff obstacles to trade in goods and services.
ITC also provides thought leadership in trade promotion and trade information through its flagship publication SME Competitiveness Outlook, through its regular contributions to Aid for Trade at a Glance, and through ITC flagship events (World Export Development Forum, Trade Promotion Organisation Network World Conference and Awards, SheTrades Global, and Trade for Sustainable Development Forum).
Building a Conducive Business Environment
Policy and regulatory choices have a significant impact on SME competitiveness and play a crucial role in determining whether SMEs are able to link to value chains. ITC supports developing countries in fostering a business environment that is conducive to trade growth by facilitating the inclusion of the private sector perspective into the policymaking process. The agency assists in institutionalizing public-private dialogue in the formulation of trade strategy and policies at national and regional levels.
ITC helps developing countries and economies in transition build a more conducive business environment by:
- Supporting policymakers, TISIs and the private sector to implement the WTO Trade Facilitation Agreement;
- Supporting public and private sector partners to lead the development of export strategies, and implementation management plans to make these strategies a reality; and
- Facilitating the development of a stronger private sector voice in policymaking processes, including the WTO accession process.
Strengthening Trade and Investment Support Institutions (TISIs)
To deliver trade impact for good, ITC depends on a network of TISIs that are both beneficiaries of the agency’s work and implementing partners. TISIs are local, national and regional organizations that support businesses, such as trade and investment promotion organizations, chambers of commerce, sector associations, enterprise development agencies, supply chain management organizations, and others.
Improving the performance of TISIs to provide more relevant and effective services for improved SME competitiveness is a cornerstone of ITC’s mission. ITC’s approach to TISI strengthening is as follows:
• Through the Assess Improve Measure (AIM) for Results approach, assessing the organizational effectiveness of TISIs against industry practices and benchmarks, and helping to improve their managerial, operational, service delivery and business advocacy performance through comprehensive and customized multi-year performance improvement plans. Under this programme, ITC also focuses on helping TISIs to measure the results of their activities with a view to taking corrective actions.
- Providing customized services tailored to the individual TISIs’ circumstances, in order to better serve their exporting clients; and
- Taking a holistic approach at the sector level, to improve the institutional infrastructure related to trade in a country or region. Typically, the methodology is to empower competent TISIs to address bottlenecks along a particular value chain for export competitiveness.
Connecting to International Value Chains
Around 80% of world trade takes place within or in relation to value chains, and around 60% of world merchandise trade is in intermediate goods. Integration into value chains enables SMEs from developing countries to benefit from participation in global trade.
ITC renders SMEs more competitive through improving sector value chains and enhancing the ability of enterprises to meet market requirements and operate sustainably. Focusing on agro-processing, light manufacturing and services, including tourism, interventions improve the environment in which SMEs operate at each step of the supply chain, from market strategy through to managerial and organizational capabilities and building connections to international buyers. ITC takes a market-led approach to sector development, emphasizing diversification, improved linkages to higher value-added segments of global and regional value chains, promoting investment and ensuring the capacity of local institutions to provide relevant business support services. The solutions offered are modular in nature and customized to suit client needs. Main elements are:
- Identifying market opportunities and fostering market linkages: Communicating with current and potential customers, identifying adequate distribution channels and modes of entry into foreign markets, identifying and closing sales opportunities, and developing partnerships with larger firms to become part of their supplier base.
- Logistics and supply chain: Meeting customers’ product or service requirements through effective and efficient production management, operations, procurement, sourcing of materials, inventory management, as well as inbound, outbound and internal logistics.
- Export marketing: Designing services with differentiated features through marketing, branding, innovative products/services, and packaging design.
- Meeting technical/quality requirements: Complying with standards, technical regulations, and sanitary and phyto-sanitary (SPS) measures, organizing after-sales services, and achieving internationally recognized certification.
E-solutions and e-platforms play an important role in expanding linkages to markets, and can also support other steps in the value chain.
Promoting and Mainstreaming Inclusive and Green Trade
Increased trade alone is not sufficient to improve livelihoods. The benefits of trade growth do not necessarily reach vulnerable groups such as women, young people or marginalized communities and excessive costs may be placed on the environment. ITC works with its clients to integrate sustainable development objectives into all its trade development programmes, while maintaining its focus on demand-led initiatives. The agency implements specific programmes focused on the economic empowerment of women, promotion of youth entrepreneurship and green trade, as well as the connection of poor communities to value chains. ITC also integrates environmental sustainability and gender objectives across its entire portfolio.
- ITC’s Empowering Women to Trade Programme contributes to the economic empowerment of women by increasing the participation in trade of women-owned businesses from developing countries, raising the value of their international business transaction and diversifying market access.
- ITC’s Poor Communities and Trade Programme aims to create sustainable income opportunities for poor, marginalized communities (including refugees and migrants). It helps micro-scale producers, collective and social enterprises to add value to goods and services, and trade through an inclusive business model that connects them with international buyers from fashion and agribusiness to tourism and business process outsourcing services.
- The Youth and Trade Programme aims to enable young entrepreneurs to internationalize their businesses and increase income and employment opportunities. Through e-learning programmes, roadmaps for identifying constraints and opportunities, and accelerators offering a range of trade-facilitating services to youth-owned start-ups, the programme connects young entrepreneurs to international markets.
- The Trade for Sustainable Development Programme aims to strengthen the competitiveness of developing country SMEs in green economy markets. Through capacity-building, trade intelligence, and market connections, it uses international demand to create incentives for better environmental practice while improving livelihoods in marginalized rural communities.
Supporting Regional Economic Integration and South-South Links
Emerging markets have played a leading role in recent global economic growth and are becoming increasingly important markets for intermediate and final goods from other developing countries. Their role as sources of foreign direct investment and technology is also on the rise. The past decade has also witnessed an increased pace of regional economic integration in all regions of the world, presenting new opportunities for companies in low-income countries.
In order to strengthen South-South business links, ITC works with emerging economies such as Brazil, China, India, Turkey and others to promote value-added trade, investment and technology transfer among these markets and other developing countries, including LDCs.
ITC helps contribute to stronger regional economic integration and South-South links through:
- Assist firms from lower-income countries to integrate into value chains led by emerging market enterprises.
- Strengthening the institutional infrastructure for regional integration, with a focus on sub-Saharan Africa;
- Connecting demand and supply between emerging markets and within a region; and
- Exploring new modes of partnerships to enable growth markets to support trade development in other developing countries.
