RESTRICTED  
  
WT/COMTD/SE/M/41  
 
10 August 2021 
(21-6161) Page: 1/14 
Committee on Trade and Development  
Forty -First Dedicated Session    
 
  
NOTE ON THE MEETING OF 6 JULY  2021 
Chairman: H.E. Dr Muhammad Mujtaba  Piracha  (Pakistan ) 
A. ADOPTION OF THE AGENDA  ................................ ................................ ...................  1 
B. ECONOMIC AND TRADE IMPACT OF NATURAL DISASTERS ON SMALL  
ECONOMIES  ................................ ................................ ................................ ............  1 
- Presentation by the Food and Agriculture Organization of the United Nations (FAO)  ...........  1 
- Presentation by the International Trade Centre UNCTAD/WTO (ITC)  ................................  3 
- Presentation by the United Nations Conference on Trade and Development (UNCTAD)  ....... 4 
-  Presentation by the World Trade Organization (WTO)  ................................ ....................  5 
- Presentations by Ecuador, and Saint Vincent and the Grenadines – members of the  
Group of Small, Vulnerable Economies  ................................ ................................ .........  6 
C. OTHER BUSINESS  ................................ ................................ ................................ . 14 
 
A. ADOPTION OF THE AGENDA  
1.   The Chairman  said that the 41st Dedicated Session on Small Economies  of the Committee on 
Trade and Development (CTD)  was being held to discuss the economic and trade impact of natural 
disasters on small economies. He recalled that a proposal to hold a meeting on this subject was 
circulated on 5  May 2021 in document WT/COMT D/SE/W/41 by Guatemala, on behalf of the Group 
of Small, Vulnerable Economies  (SVEs) . Subsequently, on 10  May 2021, he had  sent a 
communication to Members in order to invite any comments on the proposal. He had informed 
Members that if no comments were rec eived by 21  May 2021, or if there were no indications to the 
contrary, he would take it that Members agreed with the proposal , and h e would then determine a 
date for the meeting of the Dedicated Session and issue an agenda accordingly.  This was the 
backgro und to the present  meeting . 
2.   The draft agenda as contained in document WTO/AIR/COMTD/SE/1 3/Rev. 1 of 25 June 2021 
was adopted .  
B. ECONOMIC AND TRADE IMPACT OF NATURAL DISASTERS ON SMALL ECONOMIES  
3.   The Chairman  said that, u nder th e present  agenda item, presentations w ould be made by the 
Food and Agriculture Organization of the United Nations (FAO), the International Trade Centre  
UNCTAD/WTO  (ITC), the United Nations Conference on Trade and Development ( UNCTAD ) and the 
World Trade Organizatio n (WTO). The Dedicated Session would then hear p resent ations  by Ecuador , 
and Saint  Vincent and the Grenadines  – members of the SVE Group .  
- Presentation by  the Food and Agriculture Organization of the United Nations (FAO)  
4.   The Chairman  welcomed  the Director of the FAO's Liaison Office in Geneva . He invited the 
FAO representat ive to make his presentation.  WT/COMTD/SE/M/41  
 
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  5.   The representative of  the FAO said that disasters had occurred at a consistently high rate over 
the past 20 years . More than 360 distinct events per  year were recorded in the 2010s , and 440 per 
year in the 2000s, compared to just over 100 in the 1980s and 90 per year in the 1970s. The 
economic loss from disasters ha d also risen significantly , averag ing USD 170 billion annually in the 
2010s . Furthermore, disasters disproportionately impacted the urban and rural poor. Against  this 
background, the FAO ha d taken a number of concrete actions . In 2015, it had  started the production 
of reports on the impact of  disasters and crises on agriculture and food security . These reports 
immediately demonstrated that the impact of disasters on agriculture had been historically 
underestimated , largely due to the unavailability of quality data. The FAO had accordingly  started to 
develop a tailored accounting approach to measure the impact of disasters on agriculture and its 
sub-sectors . This method was subsequently adopted to measure progress in the Send ai Framework 
for Disaster Risk Reduction , as well as to measure progres s in the Sustainable Development Goals 
(SDGs), and in particular SDG 1.5.2. The FAO's most recent report  on natural disasters , which was 
published in March  2021, was titled " The Impact of Disasters and Crises on Agriculture and Food 
Security ". According to the report, agriculture accounted for 26% of the  total damage and loss from 
disasters  across all sectors between 2008 and 2018.  When looking at agriculture, industry, tourism 
and commerce  togethe r – and therefore excluding infrastructure – 63% of the loss over the period 
was explained by losses in the agricultural sector.  The total production loss to LDCs and lower  
middle -income countries (LMICs) in crops and livestock amounted to USD  108 billion , of which 
USD 30 billion was in Africa, USD  29 billion was in Latin  America and the Caribbean, and 
USD 49 billion was in Asia.  Looking across all income groups, Asia accounted for 74% of crops and 
livestock loss over the 2008 -2018 period. Losses peaked in 2015 for Asia, due to a combination of 
earthquakes  and flooding. Peaks were registered in Africa in 2011, 2012 and 2017 , and in 
Latin America and the Caribbean in 2012 and 2014, mainly due to drought. Drought was the most 
destructive  force for agriculture , and had caused USD  37 billion in crop and production loss es in 
LDCs and LMICs in the 2008-2018 period. This accounted for 34% of the total crop and production 
loss in these countries. It had also been found  for this group of countries  that 82% of the impact of 
drought affected  the agricultural  sector. He next showed the impact of crop and production losses 
for LDCs and LMICs over the 2008 -2018 period by commodity group.  It was noted that roots and 
tubers had experienced the highest loss in Afric a, estimated at close to USD  10 billion. In Asia,  the 
highest los s was experienced for cereals, at around USD  11 billion. As for Latin  America and the 
Caribbean, the highest loss was recorded for milk, eggs and honey, at over USD  7 billion.  
6.   He also noted that t he impact of disasters on agriculture extend ed beyond production loss es 
alone. Trade flows could  also change after disasters , as countries compensate d for declines in crop 
and livestock production. When  countries tr ied to compensate for domestic loss, they experience d 
increase d import expenditures and reduce d export revenues.  The general deterioration of production 
and trade balances following large and medium -scale disasters could  exert tangible impacts across 
the food value chain with overall adverse consequences on sector growth,  agro-industries and 
ultimately national economies.  Depending on trade balances and other factors, food availability could  
be reduced , while access to available food could  be restricted during the physical aftermath of 
disasters. This disaster -triggered di version could  result in interruptions in the normal food supply , 
and coupled with inefficiencies in food systems, could ultimately cause conditions of food insecurity 
at the national or local levels.  In the context of the impact of trade restrictions, he gave the example 
of pine wilt, which he explained  was one of the most devastating illnesses affecting pine trees 
worldwide , and which  resulted in trade embargoes and require ments  that shipping materials made 
of pine be specially trea ted to prevent the spread.  Trade restrictions ha d been imposed to curb the 
spread of pin e wilt , which in turn had impact ed the import and export markets of forestry products. 
Similar examples could also be found in the livestock sector.  The direct impacts of animal disease 
varied from reduced production and productivity to the elimination of entire herds, and often brought 
about restrictions impeding access to local markets, as well as regional or international trade bans.  
He went on to provide information on desert locusts, which he  indicated were considered the planet's 
most devastating migratory pest. Locusts primarily target ed crops, and a locust swarm c ould 
consume as much food in a day as 35 ,000 people . Locust outbreaks were largely influenced by 
variations in climate conditions . He added that disaster risks including biological hazards , 
exacerbated by the impact of climate change , could result in a considerable increase in the 
uncertainties surrounding sanitary and phytosanitary  (SPS) threats . In this regard, the 
SPS Agreement was more important than ever to ensure the implementation of fair measures that 
protect ed human, animal and plant health. There was also a need to promote appropriate risk 
assessment, early warning systems and s urveillance, monitoring, diagnostics and border 
infrastructure, especially in developing countries.  Finally, he said that the design of policies  and 
programmes require d a solid evidence basis, which was currently incomplete and missing in certain WT/COMTD/SE/M/41  
 
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  areas. Da ta collection efforts need ed to be strengthened at the national and international level, in 
order to create a consistent evidence base on disaster impact in agriculture and its sub -sectors.  The 
scaling up of the methodolog y developed by the FAO to calculate  damage and loss in agriculture 
could form the basis of a consistent statistical assessment to guide disaster risk and reduction policy 
action and implementation . The FAO was also willing to provide support for any work on the impact 
of disasters on trade flows.  
- Presentation by the International Trade Centre UNCTAD /WTO (ITC)  
7.   The Chairman  welcomed the ITC representative , who was a  Programme Officer in t he ITC's 
Research and Strategies for Exports . He invited her to make her presentation.  
8.   The representative of  the ITC indicated  that she would  begin her presentation by sharing 
elements of  the ITC's research on  how to strengthen resilience in SVEs, and the policy options SVEs 
could  adopt to recover from natural disasters and build resilience . She said that resilience should be 
seen as the  capacity to withstand disruptions. It had been observed in many crises in developing 
countries that resilient companies emerge d as strong  as befor e, or even stronger. Furthermore, the 
ITC had found when exploring  the impact of the COVID -19 crisis on small and medium -sized 
enterprises (SMEs)  in developing countries that there were a consistent set of business fundamentals 
that made a difference as to  whether a company was resilient after disruptions. Companies that kept 
good inventory under management, that engage d with business support organizations, that had a 
diverse set of supp liers, and that had a track record of research and development , seem ed to cope 
better when a crisis arose . This suggest ed that technical assistance that boost ed these general 
drivers of resilience could  help businesses in SVEs survive crises on their own , without needing  a 
bailout. ITC data from SME competitiveness surveys show ed that resilient companies during the 
COVID -19 pandemic were five times less likely to lay off employees , and they were more likely to 
have stable sales as well. At the same time, micro and small firms had a resilience score that was 
16% lower than that of medium and large firm s. Therefore, during good times, it was essential to 
focus on building the general resilience of smaller companies.  She also noted that  specific 
investments were needed for resilience to environmental shocks . When the ITC surveyed companies 
in Sub -Saharan Africa, 15% of them said that more severe and frequent storms were posing a risk 
to the competitiveness of their businesses. However, smaller companies in developing countries  
lagged behind in terms of investments to adapt  to climate change risks . Only 38% of  the smaller 
companies the ITC had  interviewed from over 1 ,000 companies in Sub -Saharan Africa ha d invested 
in climate change adaptation, compared to 60% for large companies. This was a cause for concern, 
as it could  exacerbate the trend towards corporate concentration, which had been seen after the 
COVID -19 outbreak . 
9.   In order to support the resilience and recovery of SMEs, governments could promote 
innovation through  providing access to skills and technology . For example, they could  improve 
access to the information and communication s technology that provide d SMEs with intelligence on 
approaching storms , and what might be the impact on their businesses. Governments could also 
facilitate access to climate resilience technologies for farmers, small manufacturers and service 
providers. Green finance was particularly  crucial when it c ame to facilitating SME investments to 
promote their resilience. The ITC was additionally  calling for governments to think small first when  
designing and im plementing regulations . What that mean t in practice was to think about how a 
country's comparative advantage would  be affected by disasters , and therefore  to look at how 
incentives could  be created to help SMEs transition towards more climate -resilient industries. In 
addition, funding for business support organizations was important , because these organizations 
could create network s to share knowledge amongst small companies. Shared knowledge could be 
particularly  useful  in the immediate aftermath of natural disasters , so as to help companies in their 
recover y. She indicated that she would move on to discuss  climate change mitigation measures and 
SVEs, and how international cooperation could  help. She noted that small bus inesses in SVEs were 
already making efforts to reduc e their environmental footprint. About 42% of the companies that 
the ITC had  interviewed in Africa had indicated that  they were investing  in order to have their 
environmental footprint  reduced . SMEs that went green not only helped to tackle climate change, 
but were also able to  improve their performance and competitiveness , while securing finance for 
future innovation. She noted that 59% of African companies interviewed by the ITC that had invested 
in greening their enterprise s saw new business opportunities  arising, including through improved 
product quality, higher productivity , or access to new markets. The ITC had also seen real benefits 
arising from its resource -efficiency projects , including in te rms of reductions in greenhouse gas 
emissions and cash savings  per year . She believed that international cooperation had a role to play WT/COMTD/SE/M/41  
 
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  in supporting climate change mitigation by SMEs. In particular,  international organizations could  
provide a platform for  sharing information and best practices , and ensuring that the voices of SMEs 
were heard . She also believed that innovative financial solutions were needed to bring green finance 
to SMEs in SVEs. This could  include the development of harmoni zed standards for financial 
instruments that increase d transparency , thereby  making it easier for SMEs to access funds for 
investment and resilience. In closing, she said that t he ITC's 20-point Green Recovery Plan propos ed 
policies and actions for business support organizations, governments, lead firms  in value chains , and 
international organizations . It also provided suggestions as to what could  be done to support SME s' 
resilience to natural disasters. Delegations were i nvited to consult the ITC's 2021 SME 
Competi tiveness Ou ' 
10.   ntlook for details on the Green Recovery Plan.  
- Presentation by  the United Nations Conference on Trade and Development 
(UNCTAD)  
11.   The Chairman  welcomed the representative of UNCTAD , who was a n Economic Affairs Officer 
in the Trade, Environment and Sustainable Development Branch of UNCTAD's I nternation al Trade 
Division . The UNCTAD  representative was invited to make his presentation.   
12.   The representative of UNCTAD  said that natural disasters were hazards. Hazards included 
hydrometeorological  events such as tropical cyclones, sea level rise, storm surges, ocean warming, 
prolonged and heavy rain s, landslides, heatwaves and drought s. Hazards could  also be geophysical 
in nature , and therefore includ ed events such  earthquake s, tsunami s and volcano s. 
Hydrometeorological hazards had largely increased in intensity and frequency because of climate 
change , and mitigation measures were therefore called for. On the other hand,  geophysical hazards 
were not  so influenced by climate change , and less could be done to reduce the influenc ing factors . 
In order to explain why hazards posed a risk to small economies , he demonstrated through an 
equation that risk was a product of hazards, exposure and vulnerability . Countries that were 
subject ed to hazards therefore faced risk, and  this risk was increasing because  hazards were 
increas ing in frequency and intensity due to climate change.  Small economies  also faced significant 
exposure  because they were geographically small . For example, an entire nation could be affected 
by a hazard such as a tropical cyclone.  Furthermore, many small economies were coastal economies , 
which were  very much influenced by extreme we ather events. Exposure had also increased in many 
small economies because of more economic activity in coastal areas . On the issue of vulnerability, 
he said that s mall economies were particularly vulnerable because they tend ed to have weak 
infrastructure. In addition, much of  their productive sectors were nature -based, with significant 
employment and gross domestic product ( GDP) being  generated by agriculture, fisheries , forestry  
and the tourism industr y. All of these sectors were particularly exposed to hazards. He added that 
the greatest increase in the intensity and frequency of hazards was being observed in the tropical 
zone, which was where many small economies were located.  The tropical and sub -tropical zones 
were the areas  of the world where the greatest adverse effects of climate change were expected to 
be seen , while the temperate and polar zones could experience some benefits . He went on to outline 
some of the modeling that had been done on future expectations for natura l hazards. With regard 
to tropical cyclones, the intensity of these events and the amount of rain was expected to increase . 
Droughts were also expected to increase in the future , mainly in the tropical and sub -tropical zones, 
but in other parts of the worl d as well.  
13.   Another hazard was sea level rise , which was expected to occur gradually.  In order to address 
the negative impact of sea level rise in the future , he stressed the importance of preparing for 
flooding situations by developing hardened infrastructure to limit exposure.  He provide d specific 
examples of the possible  impact of sea level rise in Fiji and Saint  Lucia, which showed the land that 
was projected to be below flood level by the year 2100.  In addition, he demonstrated the flooding 
and destruction at ports and the airport in The Bahamas following the impact of Hurricane Dorian in 
2019.  It was pointed out that, if such infrastructure was not sufficiently hardened, a country would 
lose its means to trade. Hazards also negatively affecte d a country's productivity , including in 
nature -based sector s like agriculture and fisheries. One study predicted agricultural and fisheries 
productivity losses of between 20% and 30% in the tropical zone by the year  2100. Another study 
projected that fisheries would decline in the tropical zone by about 50% by the year 2050. He 
explained  in this regard  that fish were moving away from the equatorial area, as the water was 
getting too warm , due to climate change. Temperature increases would also have a n economic 
impact. Modelling showed that a 3°C temperature rise could result in a decline in GDP of between WT/COMTD/SE/M/41  
 
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  5% to 15% , with the greatest losses arising for countries located in the tropical zone . On the other 
hand, countries that  were not located in  either  the tropical or sub -tropical zones could benefit from 
an increase in GDP. He indicated that he would close his presentation by revis iting the equation 
which showed that risk was a product of hazards, exposure and vulnerability . Hazards could only be 
reduced  through aggressive climate change mitigation , where international cooperation was 
required.  Exposure could be reduced by relocating  economic resources, chang ing production 
methods and encourag ing economic divers ification. The reduction of exposure required policies and 
action at the national level, and in that regard he said that UNCTAD was able to work with countries 
in order to implement what he characterized as soft adaptation. He gave the example of the 
assistance UNCTAD was intending to provide to  a number of African countries so as to allow them 
to follow strategies focusing on soft adaptation options. As for vulnerability, he said that this could 
be addressed by building better and by building stronger . This required hard adaptation , where 
international cooperation could also play a role.  As an example, he said that telecommunications 
and electricity lines built above the ground  would be  immediately destroyed by hurricanes or tropical 
cyclones. In order to build back better,  it was necessary that the se lines be placed  under the ground . 
Finally, he noted that there w ere a number of trade policies and measures which were consistent 
with WTO rules  that could be implemented to work towards recovery after the imp act of a hazard. 
He also invited delegations to consult the most recent edition of UNCTAD's Trade and Investment 
Review , which dealt with  many of the issues that he had highlighted in  his presentation . 
-  Presentation by the World Trade Organization (WTO)  
14.   The Chairman  welcomed the representative of the WTO , who was  the Head of the Aid for 
Trade Unit in the Development Division . The WTO representative was invited to make his 
presentation.  
15.   The representative of the WTO said that  a research project approved by Members in April  2018 
had resulted in two studies looking into the impact of natural disasters on trade. The first study , 
undertaken by the Secretariat,  examine d the economic and trade impact of natural disasters . This 
study focused on six disaster -affected countries , which  were Dominica, Fiji, Nepal, Saint  Lucia, 
Tonga and Vanuatu. The second study  was prepared  by Professor  Giovanna  Adinolfi  from the 
University of Milan, and  looked at the measures that governments c ould take u nder the scope of 
WTO Agreements to support disaster recovery and improve resilience to future disasters.  The 
research was undertaken between April  2018 and November  2019, and was discussed during four 
symposia that took place over the period.  He explained  that the research had been inspired by 
discussions that had taken place in the Aid for Trade context, and that the researchers had tried to 
organize their thinking in terms of response, recovery and resilience.  The headline findings from the 
first study o n the economic and trade impact of natural disasters includ ed the growing burden of 
natural disasters, driven by the increa sing occurrence of hydro meteorological events . He 
demonstrated that, while  the insured losses from  geophysical events could be significant in years 
where there were major disasters of this nature,  the overall rise in insured losses since the 1970s 
were largely driven b y weather -related event s. He also showed a regional breakdown of reported 
events in relation to reported damage be tween 1980 and 2017 . The  highest  number of reported 
events  – around 4,500  – was in Asia , which also had the highest value of reported damage. He 
noted, however, that for Africa and Oceania, the value of reported damage was significantly smaller 
than the nu mber of reported events. He explained that this was because of lower asset values , as 
well as lower insurance coverage. However, it did not mean that the human or economic impact  was 
insigni ficant. To illustrate  this, he turned specifically to the six coun tries that were the focus of the 
study. It had been found that, in any given year, the five island states surveyed would likely either 
be hit by, or be recovering from, a major natural disaster  – most commonly hydrometeorological in 
origin. As for Nepal , it had to contend with seasonal rains, flooding and seismic risk.  He demonstrated 
the damage experienced by the six countries from recent natural disasters in terms of percentage 
of GDP , which he said provided a different picture  from what would be seen from looking at insured 
losses. In particular, the damage in terms of percentage of GDP could be very high  in some cases . 
Such high rates of damage were explained by the small sizes of the economies  under consideration , 
and the relative difficulties in absorbing the damage.  In contrast,  while larger and more advanced 
economies affected by natural disasters could also suffer high damage in value terms, the damage 
as a percentage of GDP would be relati vely smaller.  
16.   He also observed that there was an element of chance with regard  to the extent of  the damage 
experienced by some countries  from a natural disaster . For example , it was  not possible to predict 
the direction that a storm would take, or its severity.  The extent of the damage could therefore vary WT/COMTD/SE/M/41  
 
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  significantly from year to year, which made  economic and trade planning extremely difficult.  There 
were indirect effects from a natural disaster  as well . For example, the volcanic eruption in Iceland 
had impacted air travel across the world , as w as also the case  with the COVID -19 pandemic . He said 
that the discussion could be put in a broader context by noting that the research had looked at 172 
Trade Policy Reviews between January  2010 and September  2019, and it ha d been found that 31% 
referred to a natural disaster of some kind. This was therefore a common agenda for many  Members, 
and not just developing countries and LDCs . Turning to the trade dimension of natural disasters, he 
said that there would be a direct impact in terms of a surge in relief and reconstruction imports  in 
the immediate aftermath of a disaster. Depending on the size and nature of the shocks, the goods 
and services produced by the impacted country  could  take some time to recover , and a decline in 
exports would be observed.  Rates of recovery could vary, depending on the sector, as well as the 
type of disaster.  There would be  pressure on public finances and debt servicing , which could slow 
down the pace of recovery and reconstruction. Trade -related issues  came up at various levels, 
including in terms of the macroeconomic effects of hazards, as well as in terms of response,  recovery 
and resilience.  Moving briefly to the second study concerning the mapping exercise of 
WTO Agreements, he said that Professor  Adinolfi had noted that a wide range of actions c ould be 
taken to support disaster risk reduction and resilience across a broad cross -section of 
WTO Agreement s. Measures could be envisaged by both the disaster -affected Member , as well as 
by trading partners. For example, in the immediate aftermath, the disaster -affected Member could 
consider facilitating the entry of goods and ser vices. Consideration could possibly subsequently be 
given to protecting some sectors , while implementing s upport measures for farmers, fishers or 
manufactures . Measures to support resilience needed to also be considered. Trading partners could 
help by , for exampl e, facilitating the entry of goods and services from the disaster -affected Member , 
or by providing support for response, recovery and resilience.  He added that the Sendai Framework 
for Disaster Risk Reduction encourag ed thinking in terms of ex ante  action , rather than ex post  
reaction . Nevertheless, there remained a lot of work to be done in terms of preparedness and 
resilience . He noted in closing that all the research  that he had outlined in his present ation had been 
conducted before the COVID -19 outbreak, and that the situation had become even more complex 
when taking into account the impact of the pandemic .  
- Presentations by E cuador, and Saint Vincent and the Grenadines – members of the 
Group of Small, Vulnerable Economies  
17.   The Chairman  invited  a representative  from the Mission  of Ecuador  in Geneva to make her 
presentation.  
18.   The representative of Ecuador  said that  her country faced risks from earthquakes, droughts  
flooding  and volcanic er uptions. The COVID -19 pandemic had also significantly impacted  the country, 
which  had faced  challenges from previous epidemics as well . On 16 April 2016, Ecuador was struck  
by an earthquake which measured 7.8 on the Richter scale , and impacted 25% of the mainland. The 
same day, the country's risk management system was activated , and a state of emergency was 
declared.  The number of deaths w as estimated at 671, and over 6,000 people were wounded. There 
were many  missing persons, with many  thousands  more displaced and in need of shelters. Some 
villages disappea red completely. The damage to infrastructure amounted to  about USD 3.3 billion. 
In the WTO context, one of the responses from Ecuador was to request a  one-year extension  to the 
safeguard for balance of payments  purposes  that had initially been invo ked in 2015. The measure 
therefore remained in effect until June 2017. The reason for the request for extension was that the 
damage that occurred had a significant  impact on GDP  and employmen t. In particular, the damage 
was equivalent to 3.3% of GDP, and would re sult in a 0.7  percentage point reduction of GDP in 2016 , 
with some 21,823 jobs lost. Unemployment in the worst -hit province was estimated  to have 
increase d by 3.45  percentage points and provincial GDP was estimated to have contract ed by 9.8% . 
She went on t o outline some of the measures that were implemented by Ecuador for reconstruction. 
In this regard, she said that t he value -added tax was increased from 12% to 14% , and an additional 
3% was taxed on profits obtained in 2015. Individuals with wealth of over USD  1 million were taxed 
0.9%, while all those earning a salary of over USD  1,000 per month were asked to contribute a day's 
salary  to the reconstruction fund . This did not affect the poorer segments of the population, since 
the minimum wage in Ecuador was  USD 400 per month.  In addition, an  extraordinary tax was 
imposed on companies that ha d economic activity in Ecuador , but ha d declared their domicile abroad. 
This tax  on foreign -based c ompanies  was generally 0.9% , but was doubled for companies domiciled 
in tax havens.  Apart from tax measures, other measures were implemented, including projects to 
attract investment, the sale of public companies , and regulation s to promote the use of elec tronic 
money . In addition, a budget cut of 2 .2% of GDP was applied.  WT/COMTD/SE/M/41  
 
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  19.   She went on to say that a  new strategic framework  for Ecuador had been designed  and 
launched  with the help of the World Bank . The new strategy was based on five pillars , which were 
risk identification, risk reduction, preparedness, financial protection, and resilient reconstruction.  
Details could be found in the World Bank publication from 2012 titled "The Sendai Report: Managing 
Disaster Risks for a Resilient Future ". According to the report, gaining an u nderstanding  of hazards, 
exposure and vulnerability was the first step towards managing disaster risk.  Disaster risk 
information c ould inform different development strategies, plans and projects that c ould in turn 
reduce ri sks. Adequate preparedness was also essential, as risk could  never be completely eliminated 
or reduced , while f inancial protection strategies protect ed governments, businesses and households 
from the economic burden of disasters.  After a disaster, the reco nstruction process was an important 
opportunity to promote resilience.  She went on to say that t he principles of the strategy were based 
around data and analytics, timeliness of resources, risk layering, and disbursement of fund s. She 
indicated that some aspects of the strategy were challenging to developing countries like Ecuador, 
because it was firstly difficult to collect the relevant information required to take appropriate 
measures. Ensuring the availability of adequate resourc es was another challenging aspect of the 
strategy . Risk layering , which involved a combination of financial instruments  for risk retention and 
risk transfer,  was also a relatively new concept for Ecuador.  The specific  components  of the strategy 
for Ecuador  included firstly the identification of risks and contingent liabilities. These could be either 
explicitly established in laws or contracts , or could be implicit through moral obligations . Risk 
management through financial instruments was the second compon ent, which was based on r isk 
layering using risk retention and risk transfer . The third component was about the s trengthening of 
technical capabilities for the implementation of the strategy , where t echnical experts from 
international organizations work ed with the central government and local governments . Finally, in 
terms of the management of funds, the strategy called for the establishment of a risk trust fund, 
and the use of insurance. Resources for the risk trust fund would come from  public funds, priva te 
funds, and international aid. The public funds would be obtained from budget reallocations, 
contingent credits, disaster credits and taxes . As for the insurance aspect of the strategy, she said 
that Ecuador did not have  a broad culture of using insurance companies. This aspect of the strategy 
therefore remained to be  experienced and  tested.   
20.   The Chairman  said that the presentation by  Saint Vincent and the Grenadines  would be made 
by the Minister with Responsibility for F oreign Affairs and Foreign Trade . 
21.   The representative of Saint Vincent and the Grenadines  indicated that the importance of th e 
present  topic demanded her remote  presence at the meeting , even though it was past 5  a.m. in her 
country . Like other SVEs, S aint Vincent and the Grenadines was unfortunately almost a daily case 
study in vulnerability. This was part of the lived existence  of her country . The ever -present threat 
of natural disasters ha d become part of the country's  reality on an almost daily basis. In fact, h er 
own preparations for the present meeting had been interrupted by the passage of Hurricane Elsa, 
which  had her country  – as well as the neighboring islands of Barbados, Grenada and S aint Lucia – 
on full lockdown. Sadly, Elsa ha d impacted on S aint Vincent and the Grenadines, Saint  Lucia and 
Barbados. The costs and destruction measured in both lives and infrastructure were still being 
assessed. She noted that Elsa was the first hurricane to make landfall in Barbados for 65  years. 
Even as her country  had one eye on Hurricane Elsa, it was still dealing with the negative fallout of 
the COVID -19 pandemic , as well as the recent volcanic eruption  at La Soufrier e on 9 April 2021. The 
eruption had displac ed 20,000 people,  and had decimat ed important sectors such as agriculture, 
tourism and fishing. In the space of two weeks, there were over 30 explosive events, covering the 
entire island in volcanic ash. Neighboring islands such as Barbados and S aint Lucia were also 
impacted, which was once  again a reflection of these countries'  shared vulnerability. The explosive 
eruptions were followed by floods and fast -moving mudflows which dealt further devastation to the 
island in a very short space of time. These mudflows were likely to be a clear and  present danger 
for the foreseeable future.  The full extent of the damage and loss  was over 40% of the country’s 
GDP. She went on to say that, while she was  attending the present meeting in her  capacity as a 
Minister of the Government of S aint Vincent and  the Grenadines, she would also take the liberty of 
drawing on the experience of other members of the Organisation of Eastern Caribbean States 
(OECS). She recall ed that, not so long ago, other SVEs  in the Caribbean suffered severe devastation 
from hurricanes. In 2019, Hurricane Dorian, which was a Category  5 hurricane, caused mass 
destruction in parts of The  Bahamas. In 2017, Hurricanes Irma and Maria, both Category  5 
hurricanes, made landfall in th e Eastern Caribbean within two weeks of each other , and caused about 
USD 12 billion of damage to the OECS islands. Dominica and the island of Barbuda suffered the 
brunt of this carnage. According to the Intergovernmental Panel on Climate Change (IPCC), cli mate 
change was expected to compound the problem by making such disasters more severe and frequent. WT/COMTD/SE/M/41  
 
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  It was projected that global climate change would  result in rising sea levels, changes in rain patterns 
and temperatures, and more intense hurricanes.  With most of the OECS population living in high -risk 
areas exposed to sea  level rise and weak infrastructure, and with heavy reliance on climate -sensitive 
sectors, the risks were expected to worsen through damage to biodiversity , coastal erosion risk to 
water a nd food security , and increased health risks.  
22.   As noted by the World Bank , the OECS countries ' small size contribute d to natural disasters  
which  result ed in high losses relative to GDP . This was because virtually all economic activity l ay in 
the path of a disaster when it hit . According to the United Nations Children 's Fun d (UNICEF ), the 
vulnerability of these islands was further shaped by socio -economic factors such as their reliance on 
climate -sensitive sectors  – including tourism, agriculture and fisheries  – as well as their  limited 
resources, high levels of public debt, and environmental fragility. According to the World Bank, 
natural disasters were estimated to have cost the OECS countries an average of 3.6 % of GDP 
between 1997 and 2016, which was significantly above the average for all small states of 1.04 %. 
Dominica and Grenada rank ed second and third globally, respectively, in terms of the relative 
amount of damages and losses over the past two decades, with an estimate at almost 8 % of GDP.  
Essentially, in the World Bank’s assessment, natural disasters undermine d the ability of these 
countries to attain macroeconomic and development goals and to break -free from the vicious cycle 
of low growth and high debt pre valent in the OECS region. Disasters also significantly impact ed 
countries ' economic growth through eroding governments ' fiscal buffers. Such events result ed in 
governments having to divert their attention and scarce resources away from vital longer -term 
development priorities, thereby placing tremendous financial pressure on OECS governments. The 
high costs incurred by climate -induced events ha d also contributed to the region 's high public debt. 
For example, the Government of S aint Vincent and the Grenadin es estimate d that 15 % of debt 
accumulated between 2010 and 2017 was directly attributable to post -disaster reconstruction and 
investments in building disaster resilience.  She went on to say that Members could be wondering 
what the trade policy nexus was in what she had outlined thus far. She said that she was aware that 
not all Members saw a role for the WTO in the context of the vulnerability of her country and other 
SVEs to natural disasters. The most obvious and immediate nexus was that natural disasters  severely 
affect ed the sectors on which these countries relied on to trade  – notably , agriculture, fisheries and 
tourism. Damage to trade support infrastructure  – including roads, ports and telecommunications  – 
heighten ed trade costs and compound ed these countries'  ability to trade and access global supply 
chains post -disaster.  
23.   She indicated that she would turn to the trade policy implications and options . Before offer ing 
her own impressions, she said that she would pose a few questions for Members'  collective 
consideration . She pointed firstly to the GATT General and Security Exceptions , and asked whether 
they provide d any flexibility to a Member which  may want to invoke certain WTO -inconsistent 
measures to rebuild from a  natural disaster . Second, she asked what type of trade policy measures 
might a Member want to invoke which may be WTO -inconsistent . If a Member  were to provide certain 
forms of specific subsidies, she asked whether  the Agreement on Subsidies and Counterva iling 
Measures provide d any flexibility . If a Member  were to provide certain forms of domestic support 
and subsidies to agriculture , she asked whether the Agreement on Agriculture suffice d. She also 
wondered whether Members want ed any flexibility to increa se tariffs beyond the bound rates to 
provide protection to a domestic sector , or whether M embers want ed to apply discriminatory tariff 
rates among trading partners . She believed that t hese were certainly worthy of further reflection. 
However, as Members  reflect ed, she indicated that they may actually be able to draw some 
inspiration from the current draft of the fisheries subsidies text, which envisage d a carve -out for 
disaster relief. She won dered whether Members should then move forward by adopting a similar 
approach in future WTO Agreements . Or alternatively, she wondered whether Members should create 
an omnibus WTO framework for disaster relief which would apply to current and future 
WTO Agreements . Relevant issues ar ose here for serious consideration.  As she prepare d to close, 
she a ssure d delegations that her countr y was prepared to engage with Members on these important 
issues with a view to raising awareness of the impact of natural disas ters on trade. Her country also 
remain ed open to discuss with Members the appropriate trade policy responses that could  be 
deployed in this context. She believed that the WTO needed to  be actively engaged in these matters. 
Finally, as a deliverable for the Twelfth WTO Ministerial Conference ( MC12 ), she called on Members 
to support a Ministerial Decision o n the Work Programme on Small Economies. She emphasized the  
importance on such an outcome , which needed to  also recogni ze the vulnerability of her countr y and 
other SVEs to natural disasters.  
24.   The Chairman  opened the floor for questions or comments from delegations.  WT/COMTD/SE/M/41  
 
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  25.   The representative of Guatemala , on behalf the SVE Group, thanked the presenters for the 
information that was  shared . With regard to the presentation by the FAO, she recalled that the 
presenter had mentioned that there w as a lack of capacity in collecting information regarding the 
impact of natural disasters. She asked if more details could be provided on what  could be done to 
allow countries to be able to contribute better to the FAO's work.  She also encouraged further 
discussions  and collaboration  to take place between the FAO and the WTO on the impact of natural 
disasters on trade flows. She added  that she was interested in issues relating to insurance, and said 
in this regard that  farmers in many developing countries sold their crop even before it was planted. 
When a natural disaster hit a country , in many cases  farmers not only lost their crops, but were  also 
burdened with indebtedness, as they did not have access to  any form of insurance . She wondered 
if the presenters had any comments to make on the inability of small producers to gain access to 
insurance. Finally, she expressed  particular appreciation for the presentations by Ecuador, and 
Saint Vincent and the Grenadines , and indicated that the SVEs well understood the challenges that 
had been outlined by these two members of the SVE Group.  She indicated that she would proceed 
to make an intervention on  behalf of Guatemala.  
26.   The representative of Guatemala  said that she wished to share her country's national 
perspective on this matter. She stress ed the significance of trade costs arising from exogenous 
factors , which could not be controlled. In the case of Guatemala, the very nature of its terrain, 
geographic location and climate ma de the country highly vulnerable to the effects of climate  change. 
Guatemala was affected by natural phenomena such as earthquakes, volcanic activity, landslides, 
hurrican es, floods, droughts and forest fires. According to data from the United Nations Office for 
Disaster Risk Reduction, Guatemala rank ed fifth in the world in terms of the number of deaths caused 
by natural disasters. The effects of such disasters on the econ omy and domestic production were 
very significant,  and the costs were often so high that they ke pt the country and the economy in a 
permanent state of vulnerability.  Guatemala ha d identified transport infrastructure as the main trade 
cost in both goods and  services. The direct connection that natural disasters ha d with this type of 
infrastructure needed to  be stressed. The Guatemalan Government ha d been constantly striving to 
develop and improve its transport infrastructure . While the country's  Comprehensiv e Risk 
Management preparation and response capabilities ha d significantly improved in recent years, the 
negative impact  of natural disasters  on infrastructure was a hindrance that could not  be avoided.  
The past few years ha d shown the devastating effects t hat a natural disaster c ould have on the 
country's entire economy.  In 2020, northern Guatemala was hit extremely hard by 
Tropical  Storm Eta, as were other Central  American countries. The country witnessed the magnitude 
of the damage caused, which included flooding, destroyed bridges, collapsed roads, drowned crops 
and the tragic loss of those who were left buried or missing. In terms of the damage to infrastructure, 
over 85,000 homes, as well as 26 roads and 51 bridges , were destroyed. A further 793 roads a nd 
456 schools were affected. In addition, Tropical Storm Iota then caused further destruction months 
later in the same areas that had been hit by Eta. The economic and trade costs of both storms were 
substantial , and it was estimated that between 75 % to 100% of the region's crops were lost.  This 
damage was having a direct impact on the country's trade and production costs, since transport was 
more expensive as a result of the infrastructural damage . Products were taking longer to reach their 
destination and, with regard to the crops lost, many farmers d id not even have insurance to cover 
their losses.  Guatemala support ed discussion s on this matter at the WTO, particularly because 
building resilience to deal with natural disasters and their tra de and economic effects was essential. 
Her delegation was convinced that the increase in  the number and magnitude of these disasters was 
directly linked to climate  change . It was necessary to take international action , and to support 
international cooperat ion activities for countries such as Guatemala.  
27.   The representative of Sri Lanka  expressed his appreciation to the presenters, and also thank ed 
the delegation of Guatemala for having circulat ed the proposal , on behalf of the SVE Group,  to hold 
a meeting of the Dedicated Session to discuss the  economic and trade impact of natural disasters 
on small economies.  As highlighted in the proposal, SVEs continue d to face several challenges which 
hinder ed their ability to fully integrate into the multilateral trad ing system  (MTS) . SVEs were also  
particularly vulnerable to natural disasters and ha d greater difficulties to recover . They experience d 
long lasting negative effects after disasters str uck their t erritories. Sri  Lanka ha d been identified as 
a country which could  be affected by different types of natural disasters every year. Such events 
include d floods, landslides, cyclones, droughts, and exceptional events like tsunami s. In terms of 
frequency, sea sonal floods and associated landslides were the most common hazards  in Sri  Lanka . 
Cyclones, droughts and tsunamis were less frequent, but brought  more severe repercussions . The 
frequency of landslide s was increasing . The m ajor landslides that had occurred  during the past two 
decades  had taken the lives of hundreds of people , and ma de thousands homeless while destro ying WT/COMTD/SE/M/41  
 
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  their livelihood and economic activities. In the recent past, Sri  Lanka ha d experienced a few 
man-made disasters as well , which had had a negative impact on the economy, the livelihood of 
people , and especially the marine environment.  The damage to the marine ecosystem by the most 
recent incident ha d not yet been estimated . It would take a long time for the ecosystem to recover , 
and this would badly affect Sri  Lanka’s economy, as an SVE. His delegation  wished  to emphasize the 
importance of achieving the objectives of the proposal submitted  by the SVE  Group , and therefore  
sought  the Committee 's consideration to have an in -depth discussi on on the main economic and 
trade impacts suffered by SVEs through  natural and man -made disasters. It was additionally  
important to discuss possible trade policy responses under existing WTO rules that SVEs could  adopt 
to recover from natural disasters and  build resilience. Sri  Lanka also sought the  Committee 's 
consideration to discuss how, and in which areas, SVEs could benefit from international cooperation 
to adopt climate change mitigation measures.  
28.   The representative of Trinidad and Tobago  expressed appreciation for the convening of th e 
present meeting, given the importance to her country of the topic being address ed. She also 
applaud ed the tireless efforts of the delegation of Guatemala , as the Coordinator of the SVE  Group , 
and thank ed Memb ers for the flexibility and compromise that  had paved the way for the organi zation 
of this critical and timely discussion. While the degree of importance of the topic varie d from country  
to country , it was ultimately a topic that concerned all Members, given their interconnectedness and 
the shared goal of integration of all into the MTS. She went on to thank the FAO, UNCTAD, the ITC 
and the WTO for their contributions , and indicated that her delegation was particularly pleased that 
Members  had had the  oppor tunity to hear from Ecuador and S aint Vincent and the Grenadines. Their 
contributions had provided useful insights on vulnerability and the specific challenges faced, as well 
as ways in which international cooperation was critical for disaster response, recovery and resilience.  
For Trinidad  and Tobago, the Caribbean region, and inherently  vulnerable small island developing 
states (SIDS) across  the globe, the existential threat posed by climate change was a pressing one 
that could  not be denied or ignored. SIDS were  acutely vulnerable to the impacts of climate change , 
in light of their susceptibility to natural hazards, exposed populations resid ing in low -lying coastal 
areas, limited land space and fragile environments. The particular Achilles heel of 
Trinidad  and Tobago , and the m ember States of the Caribbean Community ( CARICOM ) as a whole , 
was vulnerability to seasonal hydrometeorological event s – specifically , tropical storms and 
hurricanes that occur red in the second half of the year, every year. She noted in this regard that 
Hurricane  Elsa had made its way across the region just a few days ago. Such recurring threats 
reinforce d the persistent nature of the vulnerability of these countries , and had important 
implications for their efforts to achieve resilience, economic growth and sustainable development.  
Climate change and the concomitant increase in  the frequency and intensity of certain natural 
hazards constitute d a real threat to efforts to achieve sustainable development, thereby undermining 
and reversing progress achieved in this regard. The Category 5 hurricanes that made repeated 
landfall in  the region in 2017, the sustained rainfall that caused extensive flooding in 
Trinidad  and Tobago in October  2018, the extreme weather events in the region in 2019 and 2020, 
as well as the severe flooding in Guyana and Suriname in May and June  2021, ha d all resulted in 
the loss of lives and livelihoods, in displacement, in destruction and damage to property and hard 
infrastructure , and in disruption of soft infrastructure.  
29.   These circumstances had economic, trade, social and environmental impacts, significantl y 
eroding and setting back development efforts.  The manifold economic and trade impacts of natural 
disasters on SVEs were certainly a cause for concern. Countries i n the Caribbean  region  had 
experienced loss of lives, livelihood and income  – in addition to  destruction and damage to 
trade -related infrastructure, including roads, ports and airports. Natural disasters ha d disrupted 
water, electricity, telecommunications, transportation and port systems , and had placed significant 
pressure on the manufacturing sector through damage to premises, machinery and stocks. The 
significant impact on soft infrastructure needed to  also be taken into account, with government 
services, the education system, health care, financial institutions and law enforcement of affected 
territories disrupted in the aftermath. This damage and disruption negatively impact ed production, 
distribution  and consumption, thereby curtailing economic growth. Fisheries, agriculture and 
services sectors were all particularly vulnerable to natural hazards, and this was particularly 
problematic given the importance of these sectors in efforts to achieve food se curity and economic 
growth.  More often than not, pre -existing development -related challenges both constrain ed disaster 
preparedness and exacerbate d the negative impacts of a natural disaster. These challenges include d 
limited diversification of economies ; high dependence on international trade ; vulnerability to 
external shocks ; fragile infrastructure ; financial, capital and human resource constraints ; and 
difficulty accessing affordable financing. In the context of a natural disaster, when there was WT/COMTD/SE/M/41  
 
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  inevita bly an increased demand for government support and relief, pressure on national budgets 
increase d quickly and exponentially. Governments grapple d with already  limited fiscal space and 
with the exacerbation of debt levels. The trade balance was also negativ ely affected by decreased 
exports and by an increase in imports, for example of food and building materials.  At times, impacted 
countries were  confronted with multiple shocks at once  – for instance , continuing to contend with 
the fallout from the COVID -19 pandemic , while also seeking to address flooding and landslips caused 
by extreme weather events. Another pertinent example that ha d replicated itself across the region 
over the years was the challenge of facing a hurricane when recovery from the previous o ne was 
still underway.  Moreover, given the proximity and interconnectedness as a region, the ability to lend 
support to fellow SIDS could  be constrained in a situation where multiple territories were affected 
by the same natural hazard.  
30.   In instances when one territory was spared direct or indirect damage from a volcanic eruption 
or hurricane, trade disruptions could  still affect the region at large, due to the disruption of regional 
air transport a nd maritime shipping . This  could result in delays, spoilt cargo, lost business and 
financial losses.  While the recurring nature of the hydrometeorological events faced in the Caribbean 
region could suggest a level of inevitability, countries in the region did not have the luxury of 
employing the "do-nothing " approach. This was not a viable option when  climate change was an 
existential threat , and when people were experiencing the negative effects of climate change on 
their safety and security, their livelih oods, their wellbeing and their very lives. It was in this context 
that the Government of Trinidad  and Tobago continue d to demonstrate its commitment to partnering 
on a global scale to confront and combat climate change, including by taking action to reduc e 
cumulative greenhouse gas emissions by 15 % from industry, power generation and the transport 
sector by 2030.  Even as SIDS and other SVEs did their part in this regard, there was scope for 
greater support from the wider international community, including in the context of the nexus 
between  trade, debt and finance. For many countries , high levels of debt as a proportion of GDP 
were not necessarily policy induced. In several instan ces, they were the consequence of repeated 
exogenous shocks. There was an evident correlation between vulnerability to natural hazards and 
indebtedness , which needed to  be duly considered by international financial institutions and donor 
countries. Moreove r, given their vulnerability, level of development and small size, the value of 
damage from natural disasters as a percentage of GDP was higher in SVEs than in larger, more  
developed economies. The same was true for economic loss relative to population siz e or GDP, as 
there was a bigger impact on smaller economies than on their larger counterparts. Given their small 
size, natural disasters often affect ed the entire country and, unlike for larger countries, were not 
isolated to just one part of a vast geogra phical area. Taking into  consider ation these elements, it 
was evident that the existing international architecture in respect of debt and financing constrain ed 
the efforts of SVEs to prepare for , and respond to , natural disasters and build resilience.  
31.   A significant number of SVEs already had high debt to GDP ratios as a consequence of the 
financial crisis and multiple natural disasters, among other challenges, and the COVID -19 situation 
had exacerbated these circumstances. Classification  as a high-income  country , or as being on par 
with notable rich countries , continue d to be problematic for Trinidad  and Tobago and other SVEs in 
a similar situation.  It mean t that they were  unduly constrained in their ability to access trade 
finance, concessional financing, official development assistance , and technical assistance and 
capacity -building  – all of which would be important tools in their efforts to overcome the negative 
economic and trade impacts of natura l disasters. Trinidad  and Tobago  joined likeminded Members 
in advocating for a more -balanced, multifaceted approach to determining eligibility for these crucial 
forms of support, one that t ook into account particular vulnerabilities and d id not rely so hea vily on 
misleading income -based criteria.  In this regard,  her delegation  firmly believe d that there was merit 
in exploring possibilities relating to a multidimensional trade vulnerability index. There was p erhaps 
scope for engagement in this regard in the  CTD and the Working Group on Trade, Debt and Finance.  
Finally, her delegation  saw value in the legal mapping exercise carried out in 2019 , and the 
identification of flexibilities already provided for in the WTO Agreements that could be leveraged in 
the co ntext of a natural disaster. As her country  sought  to improve preparedness and build resilience, 
support for the identification of relevant ex-ante trade measures that could feasibly be implemented 
in the short -term, would be invaluable. The benefits to be  derived from continued commitment to 
the implementation of the Trade Facilitation Agreement  (TFA)  were also recognized . Several 
provisions of the TFA could prove beneficial in the context of a natural disaster, including those 
related to customs and borde r agency cooperation, streamlining of procedures for clearance of 
goods , and transparency and information -sharing through the single electronic window. In this 
regard, she wished to highlight that Trinidad  and Tobago  had recently submitted a notification to 
the Committee on Trade Facilitation in respect of Article  10.4.1 on th e single window . This was  a WT/COMTD/SE/M/41  
 
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  positive development that could prove useful for minimi zing trade disruptions in the case of a natural 
disaster. In addition, her delegation was  monitoring with keen interest developments relating to 
Article  11 of the instrument  on fisheries subsidies currently under negotiation , and was heartened 
by the retention of an exception relating to disaster relief in the 30  June 2021 draft consolidated 
text. This was particularly important given the significant capital losses and the mi gration of species 
that occur red in the context of hydrometeorological and geophysical events, warranting support 
from the government for vulnerable small -scale fishers . 
32.   The representative of El Salvador  expressed appreciation for the organization of the present 
meeting. He  said that  he had a few specific questions for the presenters. For the FAO, he asked  what 
market measures could be adopted to mitigate potential shortages following contractions in supp ly 
due to natural disasters, considering that a number of small economies were net food importers . For 
the ITC, he asked whether there were any examples of countries that ha d begun to develop financing 
programmes to mitigate the risks of natural disasters . Finally, he asked the delegation of Ecuador  
how the momentum for continuing payments into the reconstruction fund had been maintained , and 
whether part of the fund had already been spent . 
33.   The representative of Ecuador  indicated his delegation's appreciation for the organization of 
the present meeting , and also thanked the presenters for the information that was shared . He ask ed 
the FAO representative whether there was a way t o reconcile the increase in animal and plant pests 
and diseases , with the  standards  on pesticides and the trend towards reducing the ir use. He also 
asked whether the ITC could give further details on green finance . He explained that his delegation 
was of the view that  the three pillars of sustainable development  – economic, environmental and 
social  – were at times overlooked in discussions on green finance. It was important to bear in mind 
that micro, small and medium -sized enterprise ( MSMEs) in SVEs faced gaps and asymmetries typical 
of their countries of origin.  
34.   The representative of China  thanked the presenters for their useful and informative 
presentations. Her delegation was impressed by the graphs, pictures and models that show ed tha t 
small economies were more vulnerable to natural disasters in terms of their econom ies, trade and 
food security.  She went on to say that China was also prone to natural disasters. With a large 
population, disasters like earthquakes and flood s could be dev astating. Her delegation therefore 
share d the sentiment s and feelings of small economies in their fight against natural disasters. China 
called for all Members ' attention to the impact of natural disasters on the econom ies and trade of 
small economies, and  saw the necessity to take concrete actions under the WTO framework to help 
small economies  improve the ir infrastructure  and strengthen capacity  building so as to enhance their 
resilience to natural disasters. She als o stressed the importance of  having  more discussions on food 
security and  the related issues that were mentioned by the FAO.  
35.   The representative of the United States  expressed appreciation for the presentations, which 
her delegation had found very informative.  She indicated that she w ished to share what the 
United  States was doing, through the United States Agen cy for International Development (USAID)  
program mes and funding. She said that USAID was committed to strengthen ing the resilience of 
exposed populations to the impacts of natur al disasters in sectors that were prone to damaging 
effects from the climate crisis  – like agriculture, health, water, and natural resource management. 
Globally, where unplanned urbanization and population growth ha d placed more people in harm’s 
way, progr ammes that help ed communities reduce risks, lessen the impact of disasters, and build 
resilience, were critical. In 2020 -2021 alone, USAID had responded to 66 disasters in 49 countries, 
providing nearly USD 7.2 billion in humanitarian assistance. This include d more than 
USD 385 million in targeted resilience and food security activities to 11 countries.  These responses 
were all intended to address the most immediate needs of countries impacted by natural disasters, 
but they typically co nstitute d only the first stage of the response. Subsequent efforts focus ed on 
program mes that g ave people tools to restart former jobs, provide d care to traumatized disaster 
survivors, and prepare d individuals to get back on their feet economically. Helpin g communities 
transition from the emergency to recovery phase of a disaster was addressed by linking USAID’s 
humanitarian assistance to the ongoing development work of the USAID mission in the affected 
country. Short-term assistance could sometimes  include  cash grants to families for their most 
immediate needs. In Sri  Lanka, for example, USAID was working to ensure displaced families ha d 
access to both emergency program mes that provide d employment training , and to program mes that 
support ed the country’s lon g-term economic development strategy  – including its focus on 
international trade. In conclusion, she said that the United  States was committed to continue WT/COMTD/SE/M/41  
 
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  working on the most urgent humanitarian needs, alongside local governments, to assist tens of 
millio ns of people get back on track on their journey to recovery and resilience.  
36.   The representative of the European Union  thanked the presenters for the information shared. 
Combating climate change and the effects of natural disasters was high on her delegation 's agenda. 
The European Union looked forward to engaging further on this important topic.  
37.   The Chairman  asked the presenters if they wished to say anything mo re, in light of the 
discussion that had taken place.   
38.   The representative of the FAO indicated  that he would first respond to the question from 
Guatem ala on the need for data. He said that data scarcity with respect to the impact of natural 
disasters on agriculture continued to be a problem. More data was need ed – in particular with regard 
to agricultural sub -sectors such as livestock, crops, fisheries and forestry sectors, which were 
differently impacted by a disaster . Work by the FAO since 2015 had already shown that the losses 
to agriculture following a disa ster w ere significantly larger than what had previously been estimated . 
However, most of the work done so far had been with respect to large-scale disasters , where 250,000 
or more people were affected. A deeper understanding was needed of other types of di sasters as 
well. He said that 40 countries were currently benefitting from support from the FAO in the context 
of natural disasters. The FAO was ready to assist more countries in terms of capacity building, in 
particular for the collection and calculation of information on the ground that would lead to better 
and stronger evidence to inform policymaking. He said that  evidence was critical to inform  better  
response options for disaster risk reduction , which would yield high returns on investment s. Turning 
to the question from El  Salvador regarding market measures, he indicated  that the FAO was working 
towards regular monitoring and information sharing , through its regular publications and its  tools 
for analysis . Finally, on the question from Ecuador regarding  the use of  pesticides , he said that the 
recent publication by the FAO on natural disasters which he had referred to in his presentation looked 
at the range of animal diseases and plant pests . The publication promote d good agricultural 
practices, and the u se of biopesticides whe re possible . Pesticides were to be used  only as a last 
resort.  
39.   The representative of the ITC said that she would respond to the two questions regarding  
financing. The first question , from El  Salvador,  asked for an y example of a country where the ITC 
was financing programmes to reduce the risk of natural disasters.  She indicated that she wished to 
provide some information on ongoing work in Pakistan, which was being undertaken with support 
from the European  Union . The work support ed access to finance for  small scale agriculture and other  
actors  to build the resilience of their enterprises , in particular  to drought s. In Bal ochistan, for 
example , drought was a recurring problem . The ITC was helping to put in place diver sification 
strategies  or other strategic moves  in exports and specialization, which required financing upfront. 
Collaboration with financial actors on the ground was required to help finance these moves and make 
a clear business case that was robus t in ter ms of  both financial criteria and  climate criteria . Turning 
to the question from Ecuador concerning the  green financing concept , she agree d that the three 
sustainable development pillars  were often lost sight of . She referred Members once again to the 
ITC's most recent  SME Competitiveness O utlook, in which there was a discuss ion on insurance . Given 
the importance of social and gender aspects, t he publication outlined the  difficulties women -led 
enterprises sometimes  faced in  gaining access to finance , as well as how they were adapting and 
preparing for natural disasters. She added that the ITC's Green to Compete approach helped 
enterprises transition to green methods of production , including through looking at climat e change 
effects, biodiversity and circular  production. For example, the ITC had helped to  map the green 
financing landscape for SMEs in Kenya , and had matched SMEs with finance providers who were 
interested in bankrolling risk reduction measures and green  production method s. Overall, she 
believed that it was important to have a gender lens, a social lens and an economic feasibility lens  
when integrat ing aspects of sustainability in building a more inclusive financial response to natural 
disasters.   
40.   The representative of the WTO said that  the study that he had referred to earlier by 
Professor  Adinolfi was a good starting point to analyze the interface bet ween natural disasters and 
WTO rules. The study was available on the  WTO website. He also indicated that he wished to pick 
up on the point s made by Guatemala regarding  insurance, and in particular on the availability of 
insurance for MSMEs.  He said that th ere were some interesting initiatives that had been taken in the 
agricultural sector, for example with regard to  parametric insurance , which could also be considered  
in a broader context . In terms of providing a balance to the discussion on flexibilities, h e suggested WT/COMTD/SE/M/41  
 
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  that insurance  could be a starting point for a discussion on market opening  as potentially reinforcing 
preparedness and resilience , since a key component of the ability to offer insurance services was 
the size of the insurance p ool.  
41.   The representative of Saint Vincent and the Grenadines  said that  her country had established 
a contingency fund a few years ago to respond to the impact of natural disasters. However, because 
of the annual hurricane season, it was a challenge to main tain the fund , as resources from the fund 
were needed  almost every year . Her country faced a constant struggle in this regard.  
42.   The Chairman  said that some requests had been received for the Powerpoint presentations 
delivered at the present meeting to be made available to delegations. He therefore request ed all the 
presenters to send their presentations to the Secretariat, if they ha d not already done so. All 
presentations submitted to the Secretariat w ould be placed on the Members ' website for th e present  
meeting.   
43.   The Dedicated Session took note  of all interventions.  
44.   The Chairman  said that  he wished to remind Members that the Dedicated Session w ould have 
some work to do in preparation for MC12. In parti cular, going by past practice, the Dedicated Session 
would  need to approve a report to the General Council, which would contain a summary of the work 
undertaken since the last Ministerial Conference. This report, in the past, ha d also contained the 
element s of an agreed text for a decision on the Work Programme on Small Economies, including  
the possible elements of future work. As he had mentioned in his intervention at the General Council 
meeting o n 5 May 2021, he had been given to understand that the SVE Group Coordinator w ould be 
consulting with Members on this matter. The objective of the SVE Group would be to eventually table 
a proposed text for a Ministerial decision on the Work Programme on Small Economies in the  
Dedicated Session, for approval by Members. He said that he would  remain in touch with the 
SVE Group Coordinator, as well as with other Members, in this regard . A meeting of the Dedicated 
Session would be convened after the summer break.  
C. OTHER BUSINESS  
45.   No matter was raised under "Other Business ". 
46.   The meeting was adjourned . 
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