United States and European Union aid cuts risk exacerbating links between aid, trade, and human and environmental crises

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Authors: Rosie Hayward, Peter Klimek, Asjad Naqvi
Cited by: 0
References: 46

Abstract

Both the United States and European Union have been considerable providers of official development aid, but political pressure is mounting to reduce future disbursements. Here, we conduct a system-wide association study linking detailed trade flows with various aid purposes—including untied, humanitarian, and typically non-trade-related aid—to explore how aid and trade may interact in indirect or unintended ways. Using OECD aid data and global trade statistics, we find strong and persistent correlations between specific imported goods and aid purposes. These links reflect trade-offs among the UN’s Sustainable Development Goals and suggest that a major reduction in U.S. aid could disrupt efforts to mitigate the impacts of its food and precious metal imports. The findings also highlight the fragile relationship between aid, minerals, and conflict. This shift may offer a strategic opportunity to nations to reduce their supply chain vulnerabilities and rethink the broader relationship between aid, trade, and human and environmental crises. Persistent correlations between traded goods and foreign aid purposes reveal connections to human and environmental crises that could be exacerbated by aid cuts, according to a global study using OECD aid data and trade flows to map obscure or unintended interactions between aid and trade.

Fields of Study & Subjects

International Development and Aid Global trade and economics Historical and Contemporary Political Dynamics

Publication details

Journal / source
Communications Sustainability
Volume
1
Issue
1
Publication date
14 January 2026
Language
EN