This report analyses how trade can contribute to economic diversification and empowerment, with a focus on eliminating extreme poverty, particularly through the effective participation of women and youth. It shows how aid for trade can contribute to that objective by addressing supply-side capacity and trade-related infrastructure constraints, including for micro-, small- and medium-sized enterprises notably in rural areas.The analysis is based on the views of 133 respondents – 88 developing countries, 35 donors, 5 providers of South-South trade-related support and 5 regional organisations – who participated in the 2019 aid-for-trade monitoring and evaluation exercise. They share the view that economic diversification is a gateway for economic empowerment, but also that empowerment is essential for economic diversification particularly when it enables youth, women and micro-, small- and medium-sized enterprises to engage in international trade. Chapter 6 focuses on the critical role of trade facilitation in supporting economic diversification and structural reforms. The World Bank Group Trade Facilitation Support Program (TFSP) and OECD research find that the level of allignment with the TFA is increasing, with notable improvements in publication of measures, automation and streamlining of procedures and engagement with the trade community.