WT/COMTD/SE/W/41  
 
5 May 2021  
(21-3873) Page: 1/2 
Committee on Trade and Development  
Dedicated Session  Original: English  
 
 
ECONOMIC AND TRADE IMPACT OF NATURAL DISASTERS ON SMALL ECONOMIES  
PROPOSAL BY THE GROUP OF SMALL, VULNERABLE ECONOMIES  
The following communication, received on 5 May 2021, is being circulated at the request of the 
delegation of Guatemala on behalf of the Group of Small, Vulnerable Economies (SVEs).  
 
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1  INTRODUCTION  
1.1.  Small and Vulnerable Economies continue to face several challenges which hinder  their ability 
to be fully integrated in the multilateral trade system.  SVEs are particularly vulnerable to natural 
disasters and have greater difficulties to recover and experience long lasting negative effects after 
disasters strike their territories. In addition, climate change is aggravating and causing more 
frequent extrem e weather events and natural disasters. According to a recent study from WTO, even 
though all countries may suffer economic losses from natural disasters, when expressed relative to 
national population or GDP, the impacts of disasters on smaller economies reflect higher values.1 It 
was evident from this study that natural disasters have important economic and trade impacts. It is 
also clear that climate change requires global responses that can only occur as a result of 
international cooperation. Therefore , it is imperative to consider policy options on how to respond 
to, and recover from natural disasters; build resilience; and adopt climate change mitigation 
measures.  
2  OBJECTIVE  
2.1.  The objective of this session is to have an in -depth conversation on what are  the main economic 
and trade impacts suffered by SVEs as a consequence of natural disasters; what trade policy 
responses under existing WTO Rules can SVEs adopt to recover from natural disasters and build 
resilience;  and how, and in which areas, SVEs coul d benefit from international cooperation to adopt 
climate change mitigation measures.  
3  PROPOSED ACTIVITY  
3.1.  A Dedicated Session on Small Economies under the Work Programme on Small Economies in 
May-June 2021.  
4  TOPICS TO BE ADDRESSED  
4.1.  Impact of natural disasters on trade of SVEs, with respect to:  
a. Infrastructure resilience (ports, roads, telecommunications).  
b. Sectoral Production ( e.g. Agriculture, fisheries, agro -processing, manufacturing and 
services ).  
c. Trade performance (goods and services/ volume and value) including challenges in 
mitigating the negative trade effects.  
 
1 Natural Disasters and Trade Study 1, World Trade Organization 2019.  WT/COMTD/SE/W/41  
 
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  4.2.  Assessing vulnerability and risk factors of SVEs with respect to natural disasters.  
4.3.  Adopting economic recovery measures consistent wit h the WTO Agreement . 
4.4.  How to strengthen resilience in SVEs and explore policy options in respect to preventative 
measures.  
4.5.  How, and in which areas, the SVEs could benefit from international cooperation to adopt climate 
change mitigation measures, like the use and transfer of new technologies and renewable energies, 
change in consumer behavior, etc.   
5  RELEVANT EXPERTS  
5.1.  Besides the WTO Secretariat, experts from the United Nations Conference on Trade and 
Development and the International Trade Centre or other relevant international organizations such 
as FAO, could share some results of their work in these areas.  
6  COSTS  
6.1.  There should be no expected additional costs to the session that will be convened in May -June 
by the Chair. The participation of other internat ional organizations in Geneva should be done through 
existing collaboration envisaged between international organizations.  
 
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