INF/MSME/W/45  
 
25 September 2023  
(23-6392) Page: 1/10 
  Original: English  
 
INFORMAL WORKING GROUP ON MSMES  
DRAFT COORDINATOR'S REPORT  
The following communication, dated 25 September 2023, is being circulated at the request of the 
Coordinator of the Informal Working Group on MSMEs , Ambassador Matthew Wilson (Barbados) . 
 
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The present document recaps key activities undertaken , and outcomes achieved , by the Informal 
Working Group since its establishment at MC11 and provides a state -of-play of current discussions. 
It is circulated under my own re sponsibility as Coordinator of the Informal Working Group.  
1  SINCE THE 11TH WTO MINISTERIAL CONFERENCE THAT TOOK PLACE IN BUENOS 
AIRES, ARGENTINA, IN DECEMBER 2017, THE INFORMAL WORKING GROUP ON MSMES 
(THE IWG):  
1.1.  Adopted on 11 December 2020 a package ( INF/MSME/4  and INF/MSME/4/ Rev.2 ) including the 
following six  recommendations and declarations:  
a. Recommendation on the collection and maintenance of MSME -related information 
(Annex  1)1; 
b. Declaration on access to information (Annex 2);  
c. Recommendation on trade facilitation and MSMEs (Annex 3);  
d. Recommendation on promoting MSMEs' inclusion in regulatory development in the area 
of trade (Annex 4);  
e. Recommendation on MSMES and the WTO Integrated Database (Annex 5);  
f. Declaration on addressing th e trade -related aspects of MSMEs' access to finance and 
cross-border payments (Annex 6).  
1.2.  Launched the Small Business Champions Initiative in 2021, an annual contest carried out jointly 
with the International Chamber of Commerce and the International Trade Centre that rewards 
outstanding projects that support MSME trade and development. Eleven projects have been granted 
an award since the launch of the competition.  
1.3.  Launched the Trade4MSMEs Platform in December 2021 and the Trade4MSMEs network in 
June 2022. T he Trade4MSMEs Platform serves as a gateway to trade information for MSMEs, 
policymakers and researchers while the related Trade4MSMEs network is a partnership with key 
International Organizations working on MSME and trade -related issues. An improved versi on of the 
Trade4MSMEs Platform including new guides and country pages was launched in June  2023 for 
MSME  Day. 
1.4.  [Launched a MSME Handbook with the information from the Trade4MSMEs Platform guides to 
equip small businesses with basic knowledge on how to trade  internationally.]  
1.5.  [Launched a Policymakers' Handbook with the information from the Trade4MSMEs Platform 
guides to help policymakers design measures tailored to the needs of small companies .] 
 
1 For Annexes, please refer to document INF/MSME/4  and INF/MSME/4/ Rev.2 . INF/MSME/W/45  
 
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  1.6.  [Launched a compendium of good practices on authorized economic operators (AEO) programs 
and MSMEs to foster the participation of small businesses in such programs and allow them to benefit 
from the advantages that such programs offer in terms of accelerated customs clearance.]  
1.7.  [Launched a compendium of initiatives to support access to finance by women -led MSMEs, 
developed jointly with the Informal Working Group on Trade and Gender and the ITC, to promote 
financial inclusion of women -led small businesses .] 
1.8.  Welcomed the launch, in June 2023, of The Trade Game in English [, French and Spanish], a 
novel approach to export readiness and trade learning for MSMEs.  
1.9.  Welcomed the establishment of the MSME Regional Trade Agreements and Trade Policy Review 
databases available on the WTO webpage.  
1.10.  Welcomed the notes on RTAs ( INF/MSME/W/6 , INF/MSME/W/6/ Rev.1, INF/MSME/W/6/Rev. 2, 
INF/MSME/W/6/Rev. 3 and INF/MSME/W/40 ) and the [5] research notes prepared by the 
Secretariat.2 
1.11.  Contributed to the annual commemoration of the United Nations MSMEs day by hosting high 
level events and developing messaging highlighting th e importance of trade for MSME 
competitiveness . 
1.12.  Collaborated with the WTO Informal Working Group on Trade and Gender, and the Trade and 
Environmental Sustainability Structured Discussions  on a joint event on "Women -led MSMEs, Trade 
and Climate Change  – Adapting and Investing for the Future ".  
2  LOOKING FORWARD:  
2.1.  The MSME Group will continue monitoring the progress of implementation of the 
recommendations and declarations set out in paragraph 1.1.  
2.2.  The MSME Group will continue to focus on issues of core signific ance to MSMEs and shall identify 
actions that could be taken to promote MSMEs' participation in international trade, building on the 
work carried out since MC11  as reflected in Annex 1.  
2.3.  The MSME Group will pursue its work on the basis of the Buenos Aires Joint Ministerial 
Statement ( WT/MIN(17)/58/Rev.1 ), reco mmendations and declarations set out in paragraph  1.1, 
and Annex 1, and will consider proposals submitted by members as well as any other inputs the 
Group deems relevant.  
2.4.  MSME Gro up members, with the support of the WTO Secretariat and relevant multilateral 
institutions, are invited to exchange good practices in areas of interest to the Group and to organize 
workshops and information sessions as appropriate.  
2.5.  The MSME Group shall mee t at least twice a year and may hold additional meetings as 
appropriate.  
2.6.  The MSME Group shall promote effective coordination and information exchange on 
MSME -related issues with the other WTO regular working bodies, and MSME Group members shall 
do their be st to promote MSME -related discussions within those bodies.  
2.7.  The MSME Group will continue to periodically share with the membership information on its 
work and discussions at the HoDs, General Council and the Ministerial Conference as well as to reach 
out to other Members in order to invite them to join the Group in light of the value of our initiative.  
 
2 The five r esearch notes include: 1) Recent Evolution of Developed -Economy MSME Participation in 
International Trade ; 2) Small and Medium Manufacturing Enterprise Trade Participation in Developing 
Economies ; 3) Small Business and Climate Change ; 4) [forthcoming]; and 5) [forthcoming].  INF/MSME/W/45  
 
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  2.8.  The MSME Group and its members should continue the existing annual dialogue with the private 
sector to ensure its work remains relevant for MSMEs.  
2.9.  The MSME G roup and its members should continue the existing dialogue with other 
international and regional organizations that work on MSME issues to promote coordination of action 
at the international level. Such dialogue will continue to take place in the context o f the 
Trade4MSMEs network established in 2022.  
2.10.  The MSME Group will continue to explore joint events and messaging with other 
WTO Committees and informal groups including the Informal Working Group on Trade and Gender, 
the Trade and Environmental Sustainability Structured Discussions , and the e Dialogue on Plastics 
Pollution and Environment ally Sustainable Plastics Trade.  
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 INF/MSME/W/45  
 
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  ANNEX  
MAPPING OF KEY ISSUES DISCUSSED BY THE GROUP SINCE MC11  
(by alphabetical order)  
1  CROSS -BORDER PAYMENTS  
Following the adoption of the Declaration on addressing the Trade Related Aspects of MSMEs' Access 
to Finance and Cross -Border Payments (Annex 6 of the December 2020 MSME package)1, the Group 
heard several other  presentations  on this topic, including by  Uruguayan e -payment company dLocal 
in May 2021; the World Economic Forum (WEF), the Inter -American Development Bank (IADB) and 
Visa in October 2022; and Singapore in April 2023.  
Speakers underlined the import ance of payment interoperability to support e -commerce, but 
perhaps even more importantly regulatory interoperability between economies' payments systems. 
They stressed the importance of establishing common disciplines around electronic payments to 
provide  secure and internationally operable systems. Lack of infrastructure and cyber -crimes were 
also noted.  
Speakers called for continued investment in basic infrastructure for the digital economy, both 
physical and regulatory : a) a commitment to interoperable  systems to ensure that payments can be 
made across borders; b) a commitment for international coordination pertaining to innovation and 
regulations; and c) a commitment for multi -stakeholder engagement in the design of regulations. 
They noted that all of these are essential for functioning cross -border digital payment systems. They 
also stressed the need to build good regulatory practices to reduce market barriers and promote 
innovation. One best practice that was cited was the Singapore -Australia Digital economy Agreement 
which seeks to foster digital payment interoperability and standardization to increase secure, 
functioning payment transactions.  
2  DIGITALIZATION  
Various issues related to digitalization and its benefits for MSMEs have been discussed over t he past 
few years, in particular in relation to cyber -readiness and paperless trade (or trade digitalization). 
Several members, including Bahrain, Canada, Singapore, and the UK shared their good practices on 
digitalization to support MSME trade.  
2.1  Cyber -readiness  
The Group heard several presentations on this topic , including by the Cyber -readiness Institute in 
March and October 2019, Cybersecure Canada in February 2021, TechUK in May 2021, and the 
 
1 The Declaration:  
(1) calls on WTO  Members to consider the trade -related aspects of MSMEs' access to finance and 
cross-border payments  and to actively engage in relevant fora, such as the Informal Wo rking Group on MSMEs 
in cooperation with relevant WTO bodies and relevant multilateral institutions, to identify concrete measures 
that can facilitate addressing the challenges linked thereto with a view to promote their international diffusion, 
particular ly through:  a) the exchange of best practices; and b) information sharing on relevant technical 
assistance and capacity building;  
(2) Welcomes international initiatives aimed at facilitating adoption of a global legal identification 
system for companies su ch as the global Legal Entity Identifier (LEI) and invite WTO Members to cooperate in 
such initiatives;  
(3) Invites the WTO Secretariat to organize, with the support of relevant international organizations, 
information sessions on topics related to trade r elated aspects of MSMEs' access to finance and cross border 
payments including, for example, the global Legal Entity Identifier (LEI), to inform reflections and potential 
actions of Members;  
(4) Encourages all WTO Members, in cooperation with other multila teral institutions, to consider the 
trade related aspects of MSMEs' access to finance and cross border payments, taking into account the context 
of the economic recovery during and post Covid 19, particularly, in the most affected developing countries and 
LDCs.  INF/MSME/W/45  
 
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  Global Cyber Alliance in April 2022. The issue of cyber -readin ess was also mentioned by international 
organizations participating in the Trade4MSMEs network meeting of June 2023 as a top issue that 
MSMEs face (see INF/MSME/W/44 ). 
Speakers emphasized that MSMEs are the main target of cyber -attacks. It was noted that the 
majority of small companies go out of business within six months of a cyber -attack and that 
cyber -readiness is one of the key characteristics assessed when large companies select their 
business partners. MSMEs often begin to trade internationally as part of a value chain. Therefore, 
lack of cyber -readiness impedes MSME participation in global value chains.  
Speakers noted that raising awareness of the importance of MSME cyber -readiness and promoting 
tools to help MSMEs improve their cyber -readiness,  including through certification programs was 
crucial to increase MSMEs' access to international markets and global value chains. This could be 
achieved through information sessions about existing cyber -readiness training and certification 
programs for MSM Es, exchanges and mapping of good practices, and promotion of the use and 
recognition of such programs.  
2.2  Paperless trade through : 
2.2.1    Recognition of e -documents and the UNCITRAL Model Law on Electronic 
Transferable Records (MLETR)  
The Group heard many presentations on the importance of putting in place legislation to recognize 
e-documents as equivalent to paper documents to promote trade digitalization and on the benefits 
that the latter brings to MSMEs, including presentations by United Nations Commission on 
International Trade Law (UNCITRAL) ; Bahrain, Abu Dhabi Global Markets and the UK chapter of the 
International Chamber of Commerce in June 2021; Singapore in April 2023; and the ICC Digital 
Standards Initiative and the Internatio nal Federation of Freight Forwarders Associations  (FIATA) in 
July 2023. This issue was also raised during the private sector dialogues that the MSME Group held 
in 2022 and 2023 and during the Trade4MSMEs network held in June 2023.  
Speakers noted that international trade remains very paper intensive and that paper -based 
processes place a heavy burden on MSMEs wishing to trade internationally. Digitizing transferable 
trade documents could significantly boost MSME trade and help reduce the trade finance gap t hat 
impacts MSMEs. They referred to the work of UNCITRAL to promote the digitization of transferable 
trade documents through the Model Law on Electronic Transferable Records (MLETR) adopted in 
2017 and noted the importance of adopting national legislation in line with this Model Law to promote 
trade digitalization, and through this facilitate trade processes and MSME participation in 
international trade.  
Speakers encouraged  governments to give due consideration to adopting legislation compliant with 
the UN CITRAL MLETR as a way to promote trade digitalization and MSME trade and invited the MSME 
Group to work with UNCITRAL to raise knowledge and awareness about the MLETR and its 
importance for trade digitalization and MSME trade.  
2.2.2   Standards to digitalize trade  
In July 2022, the Group heard a presentation by the UK Institute of Exports & International Trade 
(IOE&IT) and TradeMark East Africa on the UK -Kenya Trade Logistics Information Pipeline (TLIP) 
which aims to digitalize the trade process for exporters. This  presentation was followed in 
October  2022 by a more technical presentation by the IOTA Foundation, the technical partner of 
IOE&IT and Trademark East Africa on the TLIP project, on the role of standards to promote efficient 
trade digitalization. The TLIP project has faced a number of challenges due to the inconsistent use 
of standards by various actors involved in international trade processes, including government 
agencies. In April 2023, Singapore gave a presentation to the MSME Group on its work to faci litate 
seamless end -to-end digital trade through electronic customs forms, including e -certifications, e -bills 
of lading, and e -invoicing.   
Speakers noted  that MSMEs can benefit significantly from trade digitalization and the resulting 
reduction in trade f rictions and costs. They stressed the need for standards harmonization across 
trade in order to digitalize and automate international trade and welcomed the work of the INF/MSME/W/45  
 
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  ICC Digital Standards Initiative in this area. The ICC -WTO Standards Toolkit was refere nced as a 
starting point to increase standardization.  
Looking forward, the Group could raise awareness of global standards for trade digitalization to drive 
adoption and promote interoperability and encourage stakeholders involved in international trade to  
use globally accepted standards when developing solutions to digitalize trade.  
3  INFORMALITY  
In September 2021, the Group heard a presentation by the United Nations Commission for 
International Trade Law (UNCITRAL) on the legislative guides on business reg istration and limited 
liability enterprises. These legislative guides aim at reducing legal obstacles to small business 
registration and  look to benefit start -ups and informal MSMEs who are looking to join the formal 
economy. They provide guidance to gover nments to craft a simplified legal form for MSMEs to 
facilitate their registration and operation, thus enhancing their chances of success and growth.  
Given the prevalence of informality among small businesses in many economies, the Group could 
consider enc ouraging WTO Members to implement the two UNCITRAL legislative guides to facilitate 
small business registration and operations.  
4  INTELLECTUAL PROPERTY  & INNOVATION  
The Group heard three presentations from WIPO on this issue in July 2021, November  2021, and 
April 2023. WIPO noted that MSMEs that make use of intellectual property (IP) generate more 
revenue than those that do not. However, MSMEs do not always know how to make the best use of 
IP or its potential benefits to increase competitiveness and  visibility as well as to avoid the risk of 
unknowingly infringing on proprietary content. In fact, only a low percentage of MSMEs (e.g. , only 
9% in Europe) use IP as part of their strategy. WIPO presented the various tools it has developed 
to support MSME  Growth and innovation, such as the IP Diagnostic Tool, IP for business guides, and 
Inventor Assistance Program. WIPO also continues to look into IP as a form of collateral to increase 
MSME access to finance and presented the findings of its 2022 study Intangible Asset Finance: 
Moving Intangible Asset Finance from the Margins to the Mainstream  to the MSME Group in 
April 2023.   
WIPO suggested the Group consider adding a point on IP in the "checklist of MSME -related 
information to voluntarily include in WTO Trade Policy Reviews" appended to Annex 1 on the 
collection of MSME -related information in TPRs of the December 2020 packag e. WIPO also invited 
members of the Group to share information on WIPO's tools with their constituents. Lastly, WIPO 
noted that the issue of IP as a form of collateral to increase MSME access to finance is something 
for the MSME Group to consider in relati on to Annex 6 of the December 2020 MSME Package on 
access to trade -related finance.   
In July 2021, the Group also heard a presentation by the WTO IP Division on discussions on MSMEs, 
IP and innovation in the context of the TRIPS Council and challenges that  MSMEs face in using the 
IP system, including cost, enforcement, and a high reliance on informal IP or "knowhow". Members 
of the Group expressed interest in working more closely with the TRIPS Council and with WIPO to 
explore ways to address these challeng es. 
5  LOW VALUE SHIPMENTS  
In February 2021 and October 2022 , the Global Express Association (GEA)  presented to the Group 
ideas to streamline the customs treatment of low value shipments. These ideas were circulated in 
INF/MSME/P/2  and INF/MSME/P/ 3. Australia and Canada  shared their experience with the Group in 
May and September 2021.  
Speakers noted that e-commerce has become an essential channel for MSMEs to access global 
markets, particularly in developing count ries. This trend has resulted in a higher likelihood of MSMEs 
sending or receiving low -value shipments. However, excessive complexity makes it difficult for 
MSMEs to comply with fiscal requirements at the destination. This may discourage them from 
exportin g to these countries and deprive them of opportunities to grow. In addition, customs and 
border agencies are facing challenges in processing the growing volumes of small parcels efficiently, INF/MSME/W/45  
 
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  which not only leads to revenue loss for governments but also cre ates a frustrating experience for 
consumers. As a result, this issue can have significant unintended consequences that affect 
governments, traders, and consumers alike.  Simplifying the customs treatment of low value 
shipments  could help countries ensure th ey efficiently collect the appropriate duty or tax on 
low-value dutiable shipments; curb undervaluation; keep a focus on security; and alleviate border 
congestion ; and make it e asier for MSMEs to calculate and remit tax or duty at destination and grow 
their business in those markets .  
Speakers noted that various countries have successfully set up models in this area that could serve 
as an inspiration. The GEA also stressed the need fo r a global database that would be the central 
reference point for the  applicable duty bands, their corresponding rates as well as the applicable 
exchange rate.  Such a global database should be located at a central point, for example an 
international  organi zation such as the WTO, and would be provided with the information 
electronically and automatically from the  participating governments through an API (Application 
Programming Interface).  
Looking forward, the Group could draw on the experience of countries that have successfully set up 
models in this area and consider the following actions2:  
a. Voluntarily set a low -value dutiable shipment threshold in line with the WCO 's Immediate 
Release Guidelines (referred to as Category  3 "Low Value Dutiable Shipments "). Each 
country would  maintain its own threshold depending on its individual circumstances. Below 
this threshold, a simplified border process and collection method would  apply.  
b. Ensure that rules and procedures for calculating, collecting and remitting duties , taxes, or 
both, as the case may be, are simpler than formal clearance rules  for shipments above 
the said threshold , and as easy to implement as possible for governments, merchants of 
all sizes, and carriers, with a view to minimizing costs incurred  for transactions below any 
low-value threshold .  
c. As regards taxes only, avoid any discrimination in the treatment of foreign and domestic 
vendors.  
d. Ideally, establish a vendor -collect system that meets the following criteria:  
i. Place the responsibility of collecting and remitting duty, tax, or both, as the case may 
be, on foreign vendors or their intermediaries . 
ii. Set up a user -friendly registration system for foreign vendors, with simplified 
documentary requirements.  
iii. Focus border formaliti es for these low -value shipments on health, safety, and security 
issues, whereas the calculation of taxes, duties or both is carried out off the border  by 
the foreign vendor .3 
iv. Allow for the periodic remittance of revenue thus collected by foreign vendors,  rather 
than on a per transaction basis.  
e. Establish a  central , digital duty/tax rate repository at the WTO  for low -value shipment 
imports . This central database or repository would serve as the central reference point for 
the applicable rate s and exchange r ate for imports  and would make it possible for 
e-commerce vendors to automatically and accurately calculate duties and/or taxes at 
destination by means of appropriate open -source software that links their on -line shops 
to the repository . Each participating  government would make their respective duty and 
 
2 This would be  without prejudice to existing de minimis  thresholds, as the proposed actions  are about 
efficiently collecting duties and taxes above the de minimis  threshold.  
3 Nothing in this proposal would detract from the authority of Customs or other border agencies to stop, 
inspect, seize, or detain a low -value shipment in connection with health, safety, and security risks.  
 INF/MSME/W/45  
 
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  tax rate information publicly available and provide it to the central reference point. This 
information would  be kept up to date, legally valid and reliable.  
6  MSME FINANCING  
Following the adoption of the Decl aration on addressing the Trade Related Aspects of MSMEs' Access 
to Finance and Cross -Border Payments (Annex 6 of the December 2020 MSME package)4, the Group 
heard various presentations on access to finance, including a presentation in May 2021 on the wor k 
that the International Finance Corporation (IFC) is doing on supply chain finance; several 
presentations in February 2022 on the Legal Entity Identifier (LEI), a G20 endorsed, globally 
verifiable unique identity code for companies  aimed at facilitating a ccess to finance; and a 
presentation by the World Trade Board in July 2023 on their Financial Inclusion for Trade Roadmap, 
which includes a set of recommendations for financial institutions, regulators, and governments to 
promote financial inclusion. In Ju ly 2023, the UK tabled a communication for discussion titled 
"Supporting Women -Owned MSMEs " (INF/MSME/W/43 ), which  describes the challenges 
women -owned businesses face to access finance; presents actions taken by the UK to promote 
access to finance by women entrepreneurs, in particular the adoption of the UK Investing in Wome n 
Code; and includes recommendations for action. The issue of MSME access to finance was also 
discussed during the private sector dialogues that the MSME Group held in 2022 and 2023 and during 
the Trade4MSMEs network meeting in June 2023.  
Speakers noted t hat MSMEs face significant challenges accessing finance, especially women -owned 
MSMEs, in spite of the fact that supporting MSME access to finance could generate significant 
economic value.  
Among possible actions that could be taken, speakers highlighted the need to raise awareness about 
SCF as a finance tool for MSMEs and to push for an appropriate legal and regulatory framework, to 
initiate a review of factoring laws in line with the UNIDROIT Model Law, to encourage mandatory 
e-invoicing, to support tech nical learning  to financial institutions and MSMEs, to increase access to 
trade-receivables data points required to make credit decisions, and to accelerate adoption of digital 
identities, in particular the LEI, through mandated utilisation in the access a nd provision of financial 
and public services.  
Regarding access to finance by female entrepreneurs, Group members were invited to share good 
practices and identify initiatives to support female entrepreneurs' access to finance. It was also 
noted that memb ers could implement domestic programs to commit financial services organizations 
to nominate a member of their senior leadership team who will be responsible for supporting 
gender -equality, increase the transparency of financial services' firms data concer ning support for 
female entrepreneurs, adopt international practices to improve female entrepreneurs' access to 
finance. Government could also support the Women Entrepreneur Finance Initiative hosted by the 
World Bank in their development of a Women Entrep reneurs Finance Code.  
[The Group could consider making the compendium of measures taken by governments to support 
female entrepreneurs' access to finance launched at MC13 a living document. Drawing on the 
experiences mapped in the compendium, consideration  could be given to developing specific policy 
guidance.]  
7  RTAS  
Noting that r egional trade agreements (RTAs) have grown in scope and number over the years  and 
that t he number and diversity of provisions related to MSMEs in these RTAs have increased , the 
Group asked the Secretariat to develop a database of MSME -related provisions in RTAs. Since the 
launch of the database in 2019, some members of the Group have expressed strong interest in 
continuing updating the database to keep track of MSME provisions includ ed in RTAs, encouraging 
governments to include such provisions in their RTAs, and exploring the impact of RTA provisions 
on MSME trade. The Group issued a call for papers in early 2023 to try and collect further evidence 
on the latter. At the request of me mbers, the Secretariat also prepared an analytical note on 
MSME -provisions in RTAs circulated in document INF/MSME/W/6/Rev.3 . 
 
4 For Annexes, please refer to document INF/MSME/4  and INF/MSME/4/Rev.2 . INF/MSME/W/45  
 
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  Looking forward, the Group could continue sharing experiences on the inclusion of MSME provisions 
in RTAs and collecting evidence on the impact of RTAs on MSME trade. The Group could also draw 
the attention of all WTO Members to the MSME RTA database and e ncourage WTO Members to make 
use of the database and to more systematically integrate MSME provisions in their RTAs.  
8  RURAL MSMES  
Some members expressed a keen interest in discussing issues related to rural MSMEs. In May 2021, 
Brazil gave a presentation to the Group on this topic. Brazil noted that rural MSMEs make up a 
significant portion of the economic participants in developing economies. Ensuring that they have 
access to international markets can benefit these actors by ensuring they have demand for the ir 
products and increasing efficiencies.  
They proposed that the MSME Group could exchange best practices on rural MSME policies and hold 
a dialogue on trade facilitation and rural MSMEs in relation to Annex 3 of the package (the 
recommendation on trade fac ilitation and MSMEs).  
9  SUSTAINABILITY  
The Group heard diverse presentations on sustainability -related issues, including by the UN Global 
Compact in September 2021 on their new SME strategy; the ITC in February 2022 on their 
GreenToCompete initiative to buil d MSME capacity and strengthen their resilience in green markets; 
UNCTAD in February 2022 on behalf of G20 Italian Presidency on the "Non -Binding Policy Toolkit on 
Promoting Born Green via Digital MSMEs and Entrepreneurship in Global Supply Chains" develop ed 
in collaboration with the ITC, OECD, World Bank and WTO; UNCTAD in February 2022 on the 
Intergovernmental Group of Experts on International Standards of Accounting and Reporting (ISAR), 
created by ECOSOC and housed at UNCTAD, that aims to generate conse nsus building, provide policy 
guidance, and give technical assistance on financial and sustainability reporting; the ICC in 
March  2023 on The Climate Impact of SMEs report  they launched at COP27, which identifies 11  policy 
recommendations to help MSMEs transition to more sustainable business practices, including 
adapting standards  and reporting requirements, providing tailored guidance and training, fostering 
the use of digital technologies, and addressing trade barriers; and the ITC in April 2023 on their 
T4SD programme which aims to improve the international competitiveness of MS MEs by helping 
them understand and access the growing number of international sustainability standards around 
the world. The issue of compliance with voluntary sustainability standards was also mentioned during 
the private sector dialogues that the Group h eld in early 2022 and 2023 and during the Trade4MSMEs 
network of June 2023.  
Speakers noted the significant challenges that MSMEs face to comply with the myriad of 
sustainability standards. Challenges in accessing green finance and lack of knowledge and sk ills were 
also stressed. They also highlighted the need to enhance entrepreneurship education and skills; 
facilitate technology exchanges and innovation; improve access to finance; promote partnerships 
and linkages; raise awareness of policymakers involved  in sustainability -related standards of the 
challenges faced by small businesses; and optimize the regulatory environment.  
Looking forward, the Group was invited to consider cooperating with the ITC to develop a set of 
minimum benchmarks to promote harmoni zation of sustainability standards. [The Group could also 
support enhanced cooperation among Members to further harmonize policies through  minimal 
benchmarks, rules on mutual recognition, and interoperability of certification schemes. 
Consideration could a lso be given to support efforts to help build quality infrastructure to ease 
certification, in coordination with other international organizations, through an STDF -like mechanism 
for environmental and social standards and certification. ] INF/MSME/W/45  
 
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  10  TRADE FACILITATION  
Following  the adoption of the Recommendation on Trade Facilitation and MSMEs in December  2020 
(Annex 3 of the MSME package)5, the Group heard several presentations on issues related to trade 
facilitation, including by UN/CEFACT in February 2021 on their Integrated Services for MSMEs in 
International Trade (ISMIT) project which aims to bridge the gap between an e -commerce 
transa ction made on a platform and national single windows by advocating for the developments of 
portals that go beyond single windows in that they provide additional services related to legal advice, 
insurance, logistics, foreign exchange settlement, etc.; Braz il in September 2021 on their Global 
Trade Hub for Internationalization of Brazilian MSMEs developed with UK funding and which is based 
on UN/CEFACT's ISMIT concept; the ITC in October 2022 on their 2018 report Supporting SMEs 
Through Trade Facilitation Reforms: Toolkit for Policymakers  which identifies 19 TFA provisions that 
impact MSMEs most  (both positively and negatively ); and the WCO in July 2023 on their SAFE 
Framewo rk for authorized economic operators (AEO), their AEO database and their SME guidelines 
to support MSME inclusion into AEO programs.  
Besides the strong recommendation for publishing information in plain language and implementing 
commonly used solutions li ke e-payments, speakers identified the disproportionately high benefits 
MSMEs can gain from Authorized Economic Operator (AEO) status.  However, they noted that MSMEs 
are sometimes prevented from joining AEO programs because of the challenge they face in me eting 
certain qualifying criteria. They advocated for a simplified version of AEO Programs that would 
provide few er criteria and specific treatment for SMEs.   
[The Group could consider making the compendium of measures taken by governments to promote 
MSME participation in AEO programs launched at MC13 a living document. Drawing on the 
experiences mapped in the compendium, consideration could be given to developing policy guidance 
to support the participation of MSMEs in AEO Programs, in cooperation with the  WCO.]  
Beyond AEOs, speakers noted the difficulty that MSMEs face beyond customs procedures to access 
a wide range of services that are essential to trade internationally and stressed the benefits of 
integrating such services on a single platform linked to  national single windows to facilitate trade 
processes and promote MSME participation in international trade.  
Looking forward, the Group could raise awareness about the ISMIT approach and encourage 
governments to put in place platforms based on the ISMIT principle.  
 
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5 In the Recommendation, members of the Informal Working Group on MSMEs :  
(1) Call on WTO Members to fully implement the TFA, in accordance with their commitments, including 
transparency measures;  
(2) Invite WTO Members, the WTO Secretariat and donor organizations to work together in order to 
design and provide capacity building and technical assistance that could consider the trade needs and 
challenges of MSMEs on the implementation of the TFA;  
(3) Recommend that  WTO Members, when conducting consultations in accordance with the TFA, engage 
with stakeholders including MSMEs located within their territories;  
(4) Encourage WTO Members, when sharing their TFA implementation experiences in the WTO 
Committee on Trade Fa cilitation, to illustrate, as appropriate, how the interests of MSMEs are taken into 
account in order to identify and promote good practices for the implementation of the TFA in a MSME -friendly 
manner;  
(5) Call upon the constructive cooperation between Mem bers with a view to enhancing freedom of 
transit. In this regard, we emphasize the importance for MSMEs of the effective application of trade facilitation 
disciplines that contribute to reducing transit time and costs, streamlining procedures through digit al solutions 
and enhancing certainty in cross -border trade;  
(6) Endeavour to identify additional opportunities for trade facilitation and promote best practices, 
including the adoption of digital solutions that can support the movement of goods across bord ers.