Brussels: The European Union is failing to deliver on its promise to channel a greater share of trade-related assistance to the world’s poorest nations, according to a stark report released by the European Court of Auditors. The findings raise concerns that the EU’s ambitious “Aid for Trade” targets for 2030 are slipping out of reach.
The auditors’ investigation revealed that while the EU pledged in 2017 to direct 25% of its trade-focused aid to Least Developed Countries (LDCs) by 2030, current allocations remain far below that mark. Instead of moving closer to the target, the share of Aid for Trade funding going to LDCs fell by six percentage points between 2015 and 2022, suggesting a steady decline in priority given to the most vulnerable economies.
Over the five years up to 2022, the EU spent €17.2 billion on Aid for Trade projects in LDCs. This figure pales in comparison to the €106 billion distributed to other developing countries during the same period. The imbalance has prompted criticism that the EU’s rhetoric on supporting the poorest nations is not matched by financial reality.
Auditors also faulted EU officials for setting the 2017 target without a concrete roadmap to achieve it. The report highlighted that no clear mechanism was put in place to ensure sufficient resources would be directed toward LDCs, leaving the goal largely aspirational.
The review examined projects in Malawi, Rwanda, Angola, and Cambodia between 2017 and 2024, uncovering further challenges. It found that although some initiatives boosted trade capacity, weak institutional frameworks and fragile local economies risk undermining long-term sustainability. Without stronger systems to maintain results, the benefits of EU-funded projects may dissipate once external support ends.
Responding to the report, the European Commission acknowledged the shortcomings and pledged to study why the targets are slipping. Officials also indicated they would evaluate whether the 25% benchmark is still realistic or whether new approaches are required to ensure poorer countries are not left behind.
The findings come at a time when global attention is increasingly focused on bridging the economic gap between rich and poor nations. Many African states, for example, are pushing to strengthen regional integration and improve payment systems to boost intra-African trade. At the same time, other international partners, such as China, are reducing import duties to make African exports more competitive underscoring the urgent need for the EU to reinforce its role as a reliable development partner.
The auditors’ warning paints a sobering picture: without urgent corrective action, the EU risks undermining its credibility as a champion of equitable trade and sustainable development. For the world’s least developed countries, already grappling with limited infrastructure and restricted access to finance, the shortfall could mean missing opportunities to integrate more fully into the global economy.