INF/MSME/R/24  
 
3 March 2021  
(21-1807) Page: 1/2 
  Original: English  
 
 
INFORMAL WORKING GROUP ON MSMES  
PRESENTATION OF THE WTO MSME GROUP'S PACKAGE OF RECOMMENDATIONS  
AND DISCUSSION WITH THE PRIVATE SECTOR, 15 DECEMBER 2020  
Summary of discussions  
The following communication, dated 3 March 2021, is being circulated at the request of the 
Coordinator of the Informal Working Group on MSMEs.  
 
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The Group organized a virtual public event via Zoom to present its package of recommendations 
(INF/MSME/4) with introductory remarks made by Uruguay's V ice-Minister of International Economic 
Affairs, WTO Deputy Director General Yi, the Secretary General of the international Chamber of 
Commerce and the Executive Director of the International Trade Centre. The purpose of the event 
was also to engage in a di rect conversation with the private sector to explore future work topics for 
the Group to consider.  
 
1  SUMMARY OF DISCUSSIONS  
1.1.  A webinar to present the MSME Group's package of recommendations to the private sector was 
held on 15 December 2020 with over 200 att endees participating virtually. Introductory remarks 
were made by H.E. Ms. Victoria Francolino, Vice -Minister of International Economic Affairs for 
Uruguay; WTO Deputy Director General Yi Xiaozhun; Mr. John Denton, Secretary General of the 
International Ch amber of Commerce; and Ms. Pamela Coke -Hamilton, Executive Director at the 
International Trade Centre.  
1.2.  Vice-Minister Francolino opened the event, noting that MSMEs are not only at the heart of every 
economy, but are also at the cent er of the economic crisi s caused by Covid -19. Given the current 
environment, this first deliverable of the MSME Group could not be come at a more opportune time, 
reflecting flexibility and collaboration. The WTO's DDG Yi also noted the Group's important 
accomplishment to support MSME -trade, highlighting the package's ability to foster business 
resilience and calling on the webinar's participants to actively share their inputs for future work. 
Mr. Denton remarked that this was both a great day for MSMEs and the WTO, revealing the 
increasing movement at the WTO in plurilateral negotiating topics including e -commerce and 
domestic regulation. He stated that the ICC has been advocating for all of the items contained in the 
MSME package and that it simply made good sense for MSMEs since making trade work for MSMEs 
always matters, especially during Covid -19. Ms. Coke -Hamilton praised the package's strong and 
reaffirming message, which shows it is possible to bridge gaps when the goal is to build a more 
inclusive and resilient trading syste m. She stressed that Covid -19 has shown the need to upgrade 
digital access and stated that the international community cannot replicate what happened with the 
analogue communication divide when it comes to these new technologies.  
1.3.  Following these introductory remarks, Ambassador Cancela of Uruguay opened the 
presentation of the MSME Group's package of recommendations and declarations, with inputs from 
the various delegate initiators of the texts, including a presentation of the Trade4MSMEs webpage.  
This webpage is currently under development and will seek to act as a verified trade information 
resource for MSMEs and policymakers.  INF/MSME/R/24  
 
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  1.4.  The webinar then turned to an open -ended discussion to inform the Group's future work 
centered around three main topics, trade facilitation, access to finance & cross -border payments, 
and digitalization.  
2  TRADE FACILITATION  
2.1.  Trade facilitation, the first topic under discussion at the webinar drew significant input. With 
many different facets, it was agreed that this topic is a n important subject for consideration by the 
MSME Group. Participants noted that the trade system was designed for multinationals and was not 
necessarily developed for smaller players. Now, as globalization has expanded and more businesses 
see benefits fro m trade, it was stated that policymakers need to have an eye out for MSMEs and 
consider them explicitly in regulations. One way that was suggested was to make sure MSME voices 
are heard through dialogue and transparency measures, and to make the ways trade  can work for 
MSMEs more obvious. Additionally, facilitating low -value shipments were mentioned as one area the 
group could consider that would benefit smaller traders. And finally, the question was posed 
regarding how the Group is responding to trade barr iers presented to women, young people and 
other marginalized groups in international trade.  
2.2.  For the future, it was suggested that the WTO MSME Group should work closely with other 
developmental organisations to ensure that MSMEs' needs in the context of tr ade facilitation are 
addressed and it was stressed that the trade environment has to be enabled by eliminating trade 
barriers as identified by MSMEs themselves.  
3  ACCESS TO FINANCE & CROSS -BORDER PAYMENTS  
3.1.  In the case of access to finance and digital payments , it was noted that there is an issue of an 
overabundance of information. It is not always clear what the most reliable source is when it comes 
to this important topic for MSMEs. However, it was also mentioned that the more options there are 
for MSME finan ce the better given new types of lending may be more accessible to small firms 
without traditional collateral for loans. Further, it was highlighted that if private banks hesitate to 
lend to MSMEs, then government and development banks need to be encourage d to fill the gap.  
3.2.  Although some of the suggestions fall outside of the WTO's remit, the ICC highlighted their 
November 2020 Memorandum, "Priming Trade Finance to Safeguard SMEs and Power a Resilient 
Recovery From Covid -19" as a list of interventions that could be most useful to MSME finance.  
4  DIGITALIZATION  
4.1.  Especially in the time of Covid -19, digitalization was highlighted as more important than ever, 
providing opportunities for businesses around the world. However, it was noted that training and 
education about these new opportunities needed to be enhanced and that general infrastructure 
difficulties, especially in developing countries, were a barrier to MSME trade participation. These 
difficulties include that MSMEs in developing countries are largely unre gistered due to the lack of 
digital infrastructure and, more basically, the struggle for these businesses to remain online given 
power grid constraints.  
4.2.  Digitalization and trade facilitation were also closely linked. It was noted that paperless trade 
is ne eded to ensure seamless border crossing for goods. However, it was remarked that full 
digitalization will not be realized unless trade agreements are negotiated with a strong technical 
understanding and a goal of full digitalization.  
 
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