INF/MSME/W/44  
 
31 July 2023  
(23-5215) Page: 1/5 
  Original: English  
 
INFORMAL WORKING GROUP ON MSMES  
SECOND ANNUAL TRADE4MSMES NETWORK MEETING  
Communication from the Coordinator  
The following communication, dated  31 July 2023 , is being circulated at the request of the 
Coordinator of the Informal Working Group on MSMEs, Ambassador Matthew Wilson (Barbados), to 
inform the MSME Group of the discussion during the second annual Trade4MSMEs Network Meeting 
held on 28 June 2023 . 
 
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1.1.  The second annual meeting  of the Trade4MSMEs Network was held on 28 June 2023. This 
followed from the proposal by the Micro, Small and Medium -Sized Enterprise (MSME) Group 
Coordinator in early 2022 to organize a regular discussion among international institutions that work 
to supp ort MSME economic participation, with the objective of keeping the Trade4MSMEs website up 
to date and of fostering cooperation among the participating organizations. Before the meeting, 
invitees were asked to provide updates of their MSME -related work in a dvance of the meeting so 
that it could be included as a reference in the summary document. Submissions are available in the 
Annex to this document.  
1.2.  Nine international organizations joined the WTO MSME Group Coordinator and Secretariat  for 
a virtual discuss ion, including the Asian Development Bank (ADB); the Enhanced Integrated 
Framework (EIF); the International Labo ur Organization (ILO); the International Trade Centre (ITC); 
the International Telecommunication Union (ITU); the UN Economic Commission for Lat in America 
and the Caribbean (UNECLAC); the UN Conference  on Trade and Development (UNCTAD); the UN 
Economic and Social Commission for Western Asia (UNESCWA); and the UN Industrial Development 
Organization (UNIDO).  The discussion was centred around two que stions : first, "what are the top 
3-5 issues that MSME constituents in your network have flagged over the past year?" ; and second, 
"what are (up to three) solutions your organization has been working on, or considering, to address 
these challenges?" . 
1.3.  In relation to the first question, interventions were made by ADB, UNECLAC, UNCTAD, ITC and 
EIF. One of the primary issues that was raised was access to finance , including trade finance and 
supply chain finance, especially for women -owned businesses. Linke d with access to finance, 
particularly with regards to supply chain finance, was the need for these MSMEs to demonstrate 
environmental, social and governance (ESG) compliance , a challenge that has been growing. More 
than one agency noted how difficult it i s for MSMEs to comply with sustainability requirements , 
including in the agricultural sector. EU regulations related to forest products was also highlighted as 
especially challenging. It was noted that for regulations in general, even when MSMEs are able t o 
comply, they face an additional burden to prove their compliance and there is a need to increase 
transparency of which businesses are certified. Tied in with this discussion was MSME formalization  
and the issue of informality . Since paperwork  and complia nce demonstration  can be complex and  
expensive  whether it is for registering a business or validating business practices, some  MSMEs 
choose to  remain informal  or outside of potentially beneficial programs given their cost -benefit 
analysis . INF/MSME/W/44  
 
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  1.4.  Other issues tha t were raised included cross-border e -commerce  and identifying the best 
platforms for MSMEs. In relation to digital trade there is a need to strengthen the link between 
markets and analysis for MSMEs so that they can target their best online sales options.  Rising trade 
costs, access to information , cyber readiness  and challenges accessing MSME -related provisions in 
regional trade agreements  (RTAs) were also discussed.  
1.5.  For the second question, ADB, ITU, ITC, UNECLAC, UNCTAD and EIF discussed various activiti es 
that have been undertaken in the past one to two years to support MSME trade inclusion. 
Digitalization, digital trade and ecommerce received particular attention. ADB funded the 
establishment of the Digital Standards Initiative (DSI) co -founded with the  International Chamber 
of Commerce and the Government of Singapore to digitize the 30 -40 most commonly used trade 
documents  and promote the recognition of e -documents. UNCTAD has worked to set up an enabling 
environment to help MSMEs access e -commerce and , through this, access  international markets.  
UNECLAC has also  developed a  Caribbean and Latin America marketplace explorer  for MSMEs  
together with ITC  to locate the best platform for their sales. Maintaining databases like this c an help 
policymakers regulate ecommerce better. The Global Trade Helpdesk (GTH) has also issued a  new 
ecommerce section  for MSME users to help them navigate the costs and opportunities for selling via 
platforms. The ITU's Handbook on mainstreaming gender in digital policies , was also referenced with 
its focus on women and digital trade. Finally, EIF noted that a large portion of their support to nearly 
19,000  MSME recipients (2,500 in the last year alone) goes towards digital trade.  
1.6.  One step further from digitalization and digital trade, g enerative AI  was discussed including its 
implications for MSME trade. UNE CLAC noted  that it is now working on a course for the fall focusing 
on digital technologies for internationalization of MSMEs. UNE CLAC is also  looking at a scoping 
exercise of generative AI tools available for MSMEs either free of charge or at a low cost  in order to 
provide the m with a learning resource . This is an area of interest for ITU and, separately, the Global 
Trade  Helpdesk is looking to develop a new chatbot to help with site navigation  and MSME access to 
information.  
1.7.  Access to finance, be it by providing governments wi th a way of viewing funding processes with 
a gender lens or through dedicated financing programmes, including climate -related finance, is 
another area of attention and it received a lot of discussion. ITC, for example, is very focused on 
this issue through  SheTrades. ADB also has a number of active programs on climate and ESG 
reporting (see the Annex for more information), and EIF has worked with Gambian businesses to 
follow -up on climate finance. However, it was noted by Ambassador Wilson that access to fi nance 
can be a broader issue than just having money available and requires sensitization by providers for 
the specific situations of the targeted clients to make it known and accessible.  
1.8.  Institutional infrastructure, as well as  capacity building for MSMEs on entrepreneurship issues , 
was another area of action . With this in mind, UNCTAD set up Empretec, a programme to promote 
the creation of sustainable, innovative, and internationally competitive SMEs. Empretec is not just 
for trade, but also logistics, wit h 40 centers in developing economies where they train MSMEs  on 
entrepreneurial skills . 
1.9.  Regarding standards, UNECLAC is currently working to help with compliance and is using 
satellite imagery to help small Latin American coffee and cacao producers  demonstrate that their 
farming is not damaging the forests. This last point links to work undertaken  by EIF  on support 
services  for busin esses to access international markets , such as in Rwanda. EIF has also worked to 
link postal services to customs solutions in certain economies, which is another area of institutional 
infrastructure that can make a big difference for MSMEs . 
1.10.  Finally, the ge nder dimension was noted as a particular area of emphasis for a lot of the 
organizations. Many of the mentioned programs and objectives were developed to support 
women -owned MSMEs.  
1.11.  Overall, Ambassador Wilson remarked that it is really powerful when agencie s collaborate as 
they are doing through the Trade4MSMEs Network. It is hard for MSMEs to know what is coming and 
how to comply, which is where international organizations can play an important role to bridge the 
divide,  by being aware of each other's work and promoting it accordingly. Finally, Ambassador Wilson 
also drew participants' attention to the joint WTO MSME Working Group, Trade and Gender and INF/MSME/W/44  
 
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  TESSD solutions lab on Women -led MSEMs, Trade and Climate Change – Adapting and Investing for 
the Future, t o be held on 25 September 2023.  
 
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  INF/MSME/W/44  
 
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  ANNEX  
1.1.  The Asian Development Bank  is active across several of the issues raised through our Trade 
and Supply Chain Finance Program. 1 ) The ADB Trade Finance Gaps Survey is underway now for 
2023 with resul ts expected in September. 2 ) ADB is also advancing climate and ESG visibility and 
traceability using QR Code and Barcode technology with GS1 and with the International Financial 
Reporting Standards (IFRS) Foundation on standards. This will have a direct im pact in helping 
emerging market SMEs maintain access to export markets . 3) ADB is exploring the development of 
an SME Toolkit for navigating ESG and sustainability standards and discussions are currently 
underway with ITC and others. 4 ) Advancing Deep Tier  Supply Chain Finance to drive liquidity to 
MSMEs is also an area of work . 5) And lastly ADB has multiple technical assistance and capacity 
building programs, including training for entrepreneurs and women -led businesses.  
1.2.  The United Nations Economic Commission for Latin America and the Caribbean 
(UNECLAC)  continues to support inter nationalization of MSMEs in the region in 2023, emphasizing 
digital transformation and cross -border e -commerce. This is accomplished through two projects: 
CORPYME, which is supported by the Republic of Korea's government 
(www.cepal.org/en/projects/corpyme ), and the Forum for East Asia -Latin America Cooperation 
(FEALAC ), which is co -implemented with UNESCAP. CORPYME examines this year, through 
documents, webinars, and v irtual courses : a) operational aspects of successful public and private 
support programs for digital transformation and internationalization of small businesses (via cross -
border e -commerce) ; and b) the use of digital technologies 4.0 (within support progr ams) for the 
same purpose. The FEALAC project, for its part, focuses on ; a) improving knowledge of the 
e-commerce landscape through the Latin America and Caribbean Marketplace Explorer (LACME) with 
visitor data and characteristics of nearly 3,000  marketpla ces ( www.cepal.org/en/notes/latin -
america -and-caribbean -marketplace -explorer -lacme ) elaborated jointly with ITC ; b) digit al trade 
regulation in 28 LAC countries ( https://dtri.uneca.org/eclac/home ), and c) support programs for 
small businesses to participate in e -commerce. Several of these acti vities have focused on gender 
gaps and are carried out in collaboration with the regional network REDIBERO of trade promotion 
organizations. UNECLAC also supports the governments of Brazil, Chile and Uruguay to monitor 
outcomes of the MSMEs chapter of thei r bilateral FTAs.  
1.3.  The WTO MSME Informal Working Group  selected a new Coordinator in April 2023, 
Barbados Ambassador Matthew Wilson , following five years with Uruguay Ambassador 
José Luís Cancela. Shortly before Ambassador Cancela's  departure, the MSME Group adopted a new 
work programme based on five pillars, namely promoting MSME access to information, building 
MSME trade capacity, providing policy guidance, implementing the December 2020 package, and 
strengthening engagement with t he private sector. For the first pillar, the Group released a 
revamped version of the Trade4MSMEs.org  website on MSME Day 2023, including new country 
pages, improved search functiona lity, and updated visuals. The MSME Group also released The Trade 
Game, a choose your own adventure online game to educate players on the export process available 
both on Trade4MSMEs.org  and game.trade4msmes.org . To build MSME trade capacity and promote 
inclusion, the MSME Group has also agreed to develop compendiums of good practices on Authorized 
Economi c Operators (AEO) programs as well as women -s access to finance and has decided to 
consolidate the Trade4MSMEs guides into two handbooks, one for MSMEs and the other for 
policymakers.  
1.4.  The United Nations Industrial Development Organization (UNIDO)  has long been 
integrally involved in the strengthening of value chains and building capacity of MSMEs to benefit 
from international trade. UNIDO offers hands -on support to its member States in creating policy 
measures to facilitate entrepreneurship development, tec hnology transfer, and value chain 
integration. Its technical assistance projects are designed to address the specific needs of MSMEs, 
taking into account their limited resources and unique challenges. The benefits of a holistic approach 
to interventions ar e demonstrated in the Swiss -funded "Global Quality and Standards Programme 
(GQSP) ", which assists 12 countries ( Albania, Colombia, Costa Rica, Georgia, Ghana, Indonesia, 
Kyrgyzstan, Peru, the Philippines, South Africa, Ukraine and Viet Nam ) in boosting the ir 
competitiveness in 16 value chains. UNIDO continues to implement several projects within the EU -
funded "West Africa Competitiveness Programme (WACP) ", enhancing the business environment in 
seven countries ( Cabo Verde, the Gambia, Ghana, Guinea, Guinea -Bissau, Senegal and Sierra 
Leone ) and supporting ECOWAS regional quality system and attendant policies along several value 
chains. Furthermore, i n the African, Caribbean and Pacific (ACP) regions, UNIDO has been entrusted 
to implement a programme  titled "ACP Business -Friendly: Supporting value chains through inclusive INF/MSME/W/44  
 
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  policies, investment promotion and alliances ", which is funded by the EU  and the Organisation of 
African , Caribbean and Pacific States, and is working towards enhancing  the regional quality and  
regulatory infrastructure governance, strengthen ing the availability of value  chain  specific quality 
infrastructure services for MSMEs and improving  quality culture and practices.  
 
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