This paper demonstrates why trade matters for boosting productivity and economic growth and explains why some countries are unable to reap the gains from trade. It does on to analyse how aid for trade can help strengthen the impact of trade on growth and poverty reduction, and which policy tools can best reinforce the impact of trade on poverty reduction. It underlines the need for a tailored, country-based approach to economic integration, and summarises the main policy conclusions and the potential gains-from-trade that are at stake. Any comments or queries should be addressed to dac.contact@oecd.org. And no country has successfully developed its economy by turning its back on international trade and long-term foreign direct investment. Virtually every country that has achieved sustained economic growth has done so by seizing the opportunity offered by more open world markets.