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WT/COMTD/SE/M/40  
 
12 January  2021 
(21-0423) Page: 1/13 
Committee on Trade and Development  
Fortieth Dedicated Session    
 
  
NOTE ON THE MEETING OF 2 NOVEMBER 20 20 
H.E. Mr. Mohammad Qurban Haqjo (Afghanistan)  
A. ADOPTION OF THE AGENDA  ................................ ................................ ...................  1 
B. OPPORTUNITIES AND CHALLENGES FOR SMALL ECONOMIES IN ATTRACTING 
INVESTMENTS  ................................ ................................ ................................ .................  1 
- Presentation by ITC  ................................ ................................ ................................ ... 1 
- Presentati on by UNCTAD  ................................ ................................ ............................  2 
- Presentation by WTO  ................................ ................................ ................................ . 4 
- Presentations by El Salvador, Guatemala and Saint Lucia - members of the Group of  
Small, Vulnerable Economies  ................................ ................................ ...............................  4 
C. IMPACT OF THE COVID -19 OUTBREAK ON THE TRADE OF SMALL ECONOMIES  ....... 9 
D. OTHER BUSINESS  ................................ ................................ ................................ . 13 
 
A. ADOPTION OF THE AGENDA  
1.   The Chairman  welcomed delegations to the 40th Dedicated Session on Small Economies  of the 
Committee on Trade and Development (CTD), which  allowed  for both in-person and virtual 
participation . As he  was connecting remotely, he informed the Committee that he had requested the 
Secretariat to give the floor to delegations on his be half, and to stand in as required if any difficulties 
with his connection were encountered.  He went on to say that the 40th Dedicated Session on Small 
Economies was originally scheduled to be held on 26  March  2020. However, in light of the COVID -19 
outbrea k and the resulting suspension of all WTO meetings earlier  in the  year, it was not possible to 
hold the 40th Dedicated Session on 26  March as planned. The present meeting  was therefore the 
first meeting of the Dedicated Session in 2020. It provide d Members  the opportunity to catch up on 
discussions in the context of the Work Programme on Small Economies.  
2.   The draft agenda as contained in document WTO/AIR/COMTD/SE/12/Rev.2 of 
23 October  2020 was adopted .  
B. OPPORTUNITIES AND CHALLENGES FOR SMALL ECONOMIES IN ATTRACTING 
INVESTMENTS  
3.   The Chairman  said that, u nder th e present  agenda item, presentations w ould be made by the 
International Trade Centre ( ITC), the United Nations Conference on Trade and Development 
(UNCTAD ) and the World Trade Organization  (WTO). The Dedicated Session would then hear 
present ations  by El Salvador, Guatemala and Saint  Lucia – members of the Group of Small, 
Vulnerable Economies (SVEs) .  
- Presentation by  ITC 
4.   The Chairman  welcomed  the ITC's Chief of Research and Strategies for Exports . He invited 
the ITC representat ive to make her presentation.  WT/COMTD/SE/M/40  
 
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  5.   The representative of  the ITC said that a company's ability to attract investment depended 
not only on its own competitiveness, but also on the competitiveness of the immediate  business 
ecosystem and the national business environment.  She intended to discuss the issue of investment 
attraction in developing  countries  and least developed countries (LDCs) from the point of view of 
small businesses , and in particular  micro, small and medium -sized enterprises (MSMEs) . She began 
by noting that r esource availability was not a problem.  For example , in 2017, asset managers had 
a stock of nearly USD 80 trillion under management, with large sums not yet invested. In 2018, 
global funds held USD 1 trillion of cash -in-hand private equity capital that was seeking investment 
opportunities. Yet, enterprises in developing countries ranked access to finance  as the top challenge 
to business growth. In fact, only a bout 1% or less of funds that global asset managers ha d under 
management was invested in developing countries. Small economies  tended to be more open to 
both trade and investment than larger economies . This was by necessity, since small economies 
lacked the scale that would allow them to produce a large number or a wide range of goods and 
services. Many  small economies therefore sought  investment as an avenue to diversify . However, 
with many small businesses present in these countries, the challenge lay in attract ing large funding 
through foreign direct investment (FDI) for these businesses.  There were several possible 
motivations behind  FDI, including the natural resource -seeking motivation and the market -seeking  
motivation . However, for present purposes, it was  efficiency -seeking FDI that was the most relevant . 
This occurred when investment took place in order to save costs when partici pating in global value 
chains (GVCs) . With this type of FDI, the home country tended to import intermediate products , and 
then export  final products  or other intermediate products.  The factors that underpin ned investment 
attraction occurred at the macro level, the meso level, and the micro level.  In order to attract 
efficiency -seeking FDI, it was necessary to operate at all three levels. Macroeconomic stability and 
the implementation of investment facilitation measures would increase predictability  at the macro 
level, while reduc ing the risks and obstacles faced by investors. Stability at the macro level would 
also be enhanced through international cooperation and information exchange .  
6.   Turning to the meso level, she highlighted the key role played by investment promotion 
agencies (IPAs), which were often referred to as investment facilitators. Through IPAs, a country 
could b uild capacity to design and implement effective investment promotion strategies.  These 
included the establish ment of  web portals to disseminate investment opportunities , and step -by-step 
guides for navigating regulatory requirements.  Contact among IPAs in different countries could f oster 
the exchange of international best practices . A survey carried out  a few years ago found  that 84% 
of investors found the presence of a high -quality IPA to be an important factor in identifying and 
closing a business. However, only 13% of th ese investors  were actually using an IPA. This indicate d 
that IPAs were potentially underperforming , despite the fact that investors ha d a high demand for 
them. With regard to  the micro level, she provided an overview of what could be done to make 
businesses more competitive and investment  ready. Thes e included policies to improve business 
skills and pl anning , as well as policies to encourage the adoption of standards and certification, which 
were a signal of quality and reliability. It was also essential to help small business es become 
formalized, so that they could benefit from investment. In the final  part of her presentation, she 
outlined how the ITC could help  developing countries, including small economies , to attract 
investments. In addition to supporting beneficiary countries in investment facilitation discussions, 
the ITC's investment -related technical assistance programs operate d at the macro, meso and micro 
level.  At the macro level, the ITC could help in identifying inefficienci es that hinder ed investment , 
and pinpointing bottlenecks through step -by-step mapping of procedures.  Reform options could be 
proposed, based on necessity and feasibility.  The ITC ha d particular expertise at the meso level in 
building the capacity of IPAs t o design investment promotion strategies  and strengthen aftercare 
services. Assistance could be provided, inter alia, in managing web portals , produc ing various types 
of information guides , and answer ing queries  from investors . Finally, at the micro level , the types of 
assistance provided by the ITC included the production of business analysis to identify constraints 
and make recommendations , the provision of technical assistance to MSMEs to overcome barriers 
to investment attra ction, and the elaboration of marketing and branding campaigns.  
- Presentation by UNCTAD  
7.   The Chairman  welcomed the Director of UNCTAD 's Investment and Enterprise Division . The 
UNCTAD representative was invited to make his presentation.  
8.   The representative of UNCTAD  said that small economies were one of the priority groups of 
countries to which UNCTAD provided assistance. He indicated  that he would begin  his presentation WT/COMTD/SE/M/40  
 
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  by loo king at some of the trends in FDI for a number of small economies .1 In the past few years, 
FDI flows to th ese countries had increased from USD 17 billion in 2015 to USD 19.5 billion  in 2018 
and 2019 . However, in the first half of 2020, flows had decreased by 17%  – from USD 9.8 billion to 
USD 8 billion – relative to the same period in 2019.  Overall, 1.3% of the global share of FDI went 
to these countrie s, which also accounted for 2.8% of the share of FDI going to developing countries. 
While these shares were  relatively low,  the investments  in question  were nevertheles s significant for 
these countries , given the small size of the economies under consideration. To illustrate this, he 
noted that t he total inward FDI stock in these countries was USD 290 billion  which , as a percentage 
of gross domestic product ( GDP), amount ed to 44%. For developing countries as a  whole, the inward 
FDI stock expressed as  a percentage of GDP was significantly lower, at 30%. The corresponding 
figure at the global level was 42%.  Turning to the challenges faced by small economies in attracting 
investments, he pointed to the small sizes of the economies in question , as well as  their 
geographically distant locations . He highlighted the connectiv ity issues the se countries  faced in 
terms of  access by  air and sea, as well  as issues relating to the appropriate information and 
communications technology  (ICT) infrastructure necessary for internet connection and participat ion 
in GVCs.  Vulnerability to natural disasters was another major challenge faced by small economies, 
which caused difficulties in gaining access to finance. Small economies needed to attract investments 
in public utilities that related to the SDGs, but at the same time governments needed to ensure that 
the goods and services made available through such investment s were affordable and accessible to 
the poor. It was noted  that there was scope for improvement in the regulatory frameworks and 
administrative practices  in many small economies . It was also noted that  some small e conomies 
could not afford to provide the same incentives for investors  that were provided by larger developing 
countries . Furthermore, it was often the case that small economies did not have the capacity to 
appropriately prepare  bankable projects.  
9.   He indicated that he would move on to discuss some of the opportunities for small economies 
in attracting investments. He believed that a major opportunity lay in investments in 
sustainability -oriented projects , including in the context of the green econom y and the blue 
economy. It was estimated that investments driven by the SDGs could be worth about 
USD 12 trillion. Major opportunities also existed in impact investm ents, including those targeting 
environmental, social and governance (ESG)  areas.  These inv estments could be worth up to 
USD 1.3 trillion. The current challenge was to find way s to channel m ore sustainability -themed funds 
to developing countries, including small economies. Another driver of investment opportunities 
related to technology . Technol ogical improvements would make manufacturing value chains shorter, 
and value -added more concentrated. This would be accompanied by a new trajectory of international 
production and investment s, and would also provide opportunities for countries with a comparative 
advantage in services exports. He suggested that more opportunities  would arise if smal l economies  
were to build partnerships and collaborate with other countries in the same geographical r egion, a s 
well as with larger economies.  Intra-regional collaboration was also highlighted as a potential way 
to attract more investments. While many opportunities  therefore  existed for small economies,  it was 
necessary for these countries to gear their in dustrial and other policies in such a way as to be able 
to benefit from these opportunities. For example, many small island developing states ( SIDS) could 
benefit from focusing on the blue economy concept, while landlocked developing countries (LLDCs) 
could function as important transit countries. He also indicated that UNCTAD could provide support 
in many ways  to developing countries, including small economies . Technical assistance could be 
provided from the macroeconomic and policy angle, and could also be provided on the details of 
investment projects , as UNCTAD worked with IPAs  and government departments dealing with 
investments . A training course was available for diplomats located overseas on how to attract 
SDG-related investments , and a hands-on-manual had been prepared  on how to put together 
investment  projects, particularly in the SDG sectors.  Overall, UNCTAD  had several  decades of 
experience in research and policy analysis, as well as in technical assistance and capacity building , 
in the area of investment . 
 
1 Antigua and  Barbuda, Barbados, Belize, Brunei  Darussalam, Cabo  Verde, Dominica, Dominican  Republic, 
Ecuador, El  Salvador, Fiji, Grenada, Guatemala, Guyana, Honduras, Jamaica, Maldives, Mauritius, Nicaragua, 
Panama, Papua  New Guinea, Paraguay, Saint  Kitts and Nevis, Saint  Lucia, Saint Vincent and the Grenadines, 
Samoa, Seychelles, Sri  Lanka, Suriname, Tonga, Trinidad  and Tobago and Vanuatu.  WT/COMTD/SE/M/40  
 
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  - Presentation by  WTO  
10.   The Chairman  welcomed the representative of the WTO, who was a Counsellor in the Trade in 
Services and Investment Division . The WTO representative was invited to make his presentation.   
11.   The representative of the WTO said that trade and FDI had traditionally been  seen as 
substitutes. This was based on the concept of horizontal FDI, whereby multinational  corporations  
(MNCs)  prefer red to invest abroad rather than export . In doing so, they could avoid high 
transportation costs  and tariffs . However, with the concept of the "global factory", trade and FDI 
were now increasingly seen as complementary activities.  An increase  in FDI flows would therefore 
lead to expanded trade opportunities for the host  country.  It was in this context that 
efficiency -seeking FDI and participation in GVCs became relevant . He observed that, i n working to 
attract efficiency -seeking FDI in the context of goods, a country also needed to consider  enhancing 
its competitiveness by  promoting investments in services activities such as telecommunications, 
transportation or financial services.  He also pointed out that much of FDI in services was 
market -seeking. This was because many services c ould not be promoted from a  distance , and  a 
commercial presence w as therefore required. However, s ome FDI in services  – for example, business 
process outsourcing  – was efficiency-seeking . He indicated that he wished to move on to discuss the 
importan ce of the regula tory framework to attract investments. In this regard, he pointed to a 
World  Bank study from 2010 on investing across borders.  It was found  in this study  that g ood 
regulations and efficient processes were associated with more FDI . In particular, FDI tend ed to be 
positively correlated with a composite index of measures in various sectors, including the efficiency 
and transparency of start -up regulation s, land acquisition and commercial arbitration procedures, 
and the level of protection of investors' interests . While correlation did not imply a causal 
relationship, this was nevertheless a valuable indication of  the importance of a sound regulatory 
framework in attracting investments.  Furthermore, in the World  Bank's 20 17/2018 Global 
Competit iveness Report, it was reported on the basis of a survey that executives in MNCs  found the 
legal and regulatory environment to be extremely important  in making their investment decisions in 
developing countries.  
12.   He went on to say that a crucial aspect of the regulatory framework was investment 
facilitation . There were a number of elements of a national investment facilitation framework, which 
could be thought of in terms of p olicies, tools and processes . The pol icies included a s ound and 
consistent regulat ory framework ; measures to speed up and streamline administrative procedures ; 
good governance  with respect to  laws and regulations ; and the creation of an environment for 
investors to act responsibly and sustainably . The tools to implement th ese policies included the 
setting up  of contact  points  and domestic supplier databases ; the creation of one -stop shops or 
single windows ; the identification of national investment facilitators ; and the use of a ftercare 
services . As for the processes that we re necessary in order to allow investment to take place, he 
highlighted the importance of public -private dialogue, domestic inter -agency coordination, 
cross-border cooperation, and periodic reviews of policies and tools. He noted that an initiative was 
currently being pursued by 105 WTO Members  to conclud e an agreement on investment facilitation 
for development. Several small economies  were participating in these discussions.  The focus was on 
facilitation policies, tools and processes . The scope of the disc ussions did not include market access, 
investment protection, or investor -state dispute settlement . Some of the issues being considered 
concerned the t ransparency of investment measures ; the s treamlining and speeding up of 
administrative procedures ; the issue of contact points; arrangements to enhance domestic 
coordination; c ross-border cooperation on investment facilitation ; special and differential treatment 
for developing  countries and LDCs; t echnical assistance and capacity building ; corporate social 
responsibility ; anti-corruption measures ; and i nstitutional arrangements . Broadly speaking, the 
investment facilitation initiative was seen as  an effort to  put together a collection of best practices 
in order to help countries attract and f acilitate investments . He concluded by noting that many of 
the points made in his presentation were contained in a non -paper that  was prepared in 2018. Any 
delegation wishing to consult this non -paper was invited to contact him.  
- Presentations by El  Salvador, Guatemala and Saint  Lucia - members of the Group of 
Small, Vulnerable Economies  
13.   The Chairman  invited the representatives of El Salvador, Guatemala and Saint Lucia to make 
their presentations.  WT/COMTD/SE/M/40  
 
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  14.   The representative of El Salvador  said that his country  spanned an area of 22,000 square 
kilometres in the heart of Central America  and had a population of 6 million . The Government 
administration , led by  President  Nayib  Bekele  since 1  June 2019, had a focus on doing business . 
This w as part of a digital agenda  aimed  at the computerization of business processes and 
interactions , which helped to meet the needs of foreign investor s, including the 3.5 million 
Salvadorans who live d abroad.  While  businesses in many industries ha d not abandoned their FDI 
plans , the timing and the size of investment s had changed. According to UNCTAD, 61 of the 100 
largest MNCs had issued earnings revisions . About 52% of project location selection processes ha d 
been paused, while 45% were continuing. Many sectors  – including life sciences, medical devices, 
technology and logistics  – had shown resilience , and had even experienced g rowth during the crisis. 
Longer -term opportunities were available for the relocation of production and supply chains , 
including in context of reshoring  and nearshoring, which w ould increase FDI. Other opportunities 
would arise through government economic s timulus packages and a greater focus on regional 
integration.  The export and investment promotion agency of El  Salvador , which was called PROESA , 
was implement ing a programme to ensure the retention of already -established investors. The 
programme sought  to strengthen the aftercare services provided to these investors , so as to 
facilitate retention, reinvestment  and expansion , while ensuring skills development  and the 
strengthening of local supplier chains.  Data collected by PROESA, found  that 51% o f the investment 
commitments identified in the 2019 -2020 period correspond ed to reinvestment or expansion. Action  
had been taken in re sponse to the crisis, including throug h coordination with the private sector , and 
the sharing of information on government  crisis-related measures  such as policy advocacy and 
support for businesses. Digital service s in the context of investment and post-investment projects  
had also been strengthened . Examples in this regard included virtual meetings and virtual site visits 
in order to avoid or eliminate face -to-face interactions ; procedural support  with various government 
agencies; direct communication with investors via e -mail, telephone, social media and webinars ; 
and an updated customer relationship management  (CRM) system for following up on projects .  
15.   He informed the Committee that the "InvestSV " investment promotion strategy  had been 
developed  in El Salvador , along with a new website , with a view to identifying priority sectors and 
optimizing institutional r esources to improve performance and results . The purpose of the InvestSV 
strategy was to enhance the attracti veness  of El Salvador as a destination for investment . The 
strategy focused , inter alia, on coordination among Ministries, the fo rmulation of sectoral and 
investment policies, and the i mplementation of investment attraction measures. PROESA 's 
responsibilities in this context include d the promotion of the country's image with a focus on 
investment opportunities, the identification of  obstacles to private investment , and coordination on 
the measures required to overcome these obstacles . Strategic tools included digital marketing tools, 
the improvement of the system for managing investor due diligence, and the adaptation of the 
manual o n operating procedures for promotional activities. A number of key performance indicators 
were used in various contexts, including aftercare indicators, inbound marketing indicators, and 
competitiveness indicators.  A decision had been taken to focus only o n five specific areas for 
investment. He indicated that he would provide information on the  aeronautics sector in El  Salvador , 
which  had exported maintenance and repair services worth USD  321.3  million in 2019  – or 10.1% 
of the total services exported . The sector had seen a 21.8% increase in exports between 2018 and 
2019. Many leading international  aeronautics  companies such as Aeroman and Avianca operat ed in 
the country. In addition to creating jobs, Aeroman  had contributed over  USD 270 million to the 
national economy  since 2006 . The company had launched a 10-year expansion plan in 2014, which 
include d a total investment of USD  120 million to expand infrastructure and train talent.  The 
San Oscar Arnulfo Romero International Airport was an important regio nal hub , and operate d as 
Avianca's hub for Central  America. Other major airlines from South  America, North  America and 
Europe also operat ed from this airport. Work was taking place to  modernize and  expand the 
passenger and ca rgo terminals , as well as the a vailable parking spaces. Land was available for 
industrial development, particularly for the aeronautics sector . El Salvador would continue to develop  
the aeronautics industry, and was open to investment s in such areas  as maintenance , assembly, 
and the manufacture of airframe s and parts.  He believed that it was important for countries to 
continue to find ways  to attract investments , in spite of the uncertainties caused by the COVID -19 
pandemic.   
16.   The representative of Guatemala  indicated that she would outline  the work of her country's  
IPA, which was called PRONACOM . She explained that significant efforts were being made in 
Guatemala to attract investments, including by improving the channels to attrac t investment s, 
maximizing investment tools, and propos ing a suitable legislative agenda and incentive package . 
She said that Guatemala's national programme for competitiveness was based on three main pillars , WT/COMTD/SE/M/40  
 
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  which were investment , competitiveness, a nd business environment.  PRON ACOM's work was 
concerned with  a range of services provided at the beginning of  an investment , as well as aftercare 
services provided after  the investment  took place . There was  a focus  on the provision of  information 
that was useful for foreign companies that wish ed to invest  in Guatemala . As such, the agency was 
in close contact with  services providers, so as to enable them to  establish communication with 
potential investors . Counselling on administrative pro cedures in Guatemala  was a dditionally  
provided , as was coordination and support during the investment process . Assistance was offered  
to enhance  the competitiveness of international investors, and to enable them to expand their 
presence in  Guatemala  and the rest of  Central America.  She went on to say that there were  a number 
of stages  of investment attraction that were followed . Even before engaging with potential investors, 
it was firstly necessary to undertake research to identify possibl e investment opportunities that were 
adequate for Guatemala . Electronic tools were used  for this  purpose, so as to ensure that efforts 
were well targeted,  and resources were appropriately used.  
17.   Once the opportunities  were identified, PRONACOM  reach ed out to investors and companies  
in order to provide them with information about benefits and incentives , and the opportunities that 
existed in Guatemala. For this purpose, t rade and investment promoters were stationed in different 
countries across the world  in order  to engage with potential  investors . Certain tools had been 
developed for potential future investors, including  a welcome package with practical information on 
how to invest, the administrative procedures to establish  a presence , and the benefits that could be 
expected from investing . The agency also participate d in international events and fairs in order to 
promote investments in Guatemala. With regard to investment facilitation , she said that a  webpage 
had been developed to facilitate th e establishment of a company . This allowed everything to be done 
online, including payments. A services provider directory had been put together in order to facilitate  
interactions  between investors and possible partners in Guatemala. The agency also maint ained 
contact with  investors after the investment had taken place, so as to facilitate their activities and 
assist them with any administrative difficulties, while also helping those that wanted to expand their 
investments . In addition, Guatemala was participating actively in the discussion s at the WTO on 
investment facilitation  for development. With regard to public policy, there were several initiatives 
underway to improve the laws that regulated investment and facilitate d relevant procedures.  
Furthermore, a national competitive polic y was in place that ha d already identified 11 clusters, 
11 priorities and 9 territories of p ossible investors . Certain  sectors  had been prioritized, included 
textile s and apparel , manufacturing, pharmaceutical and medical inputs, electronic devices, services, 
infrastructure and energy, tourism, and agribusiness.  It was  also recognized that there were 
opportunities for investment in Guatemala to address the nearshore strategies of many companies, 
in particular as Guatemala was pro-investment and pro -trade . Furthermore, the country  offered 
market access and macroeconomic stability, and had a depth o f human resources and talen t. In 
closing, she stressed the importance of investments for  the Guatemalan economy , which had 
become even more crucial since the COVID -19 outbreak.  This was why s ignificant efforts were being 
made to provide the incentives and the necessary tools for investors to increase their investments 
in Guatemala .  
18.   The representative of Saint Lucia said that his country was one of the  SIDS located in the 
eastern Caribbean. Saint Lucia had a population of approximately 180,000 people , and a  GDP of 
about USD  2.1 billion . Prior to the COVID -19 outbreak , Saint  Lucia's GDP growth was roughly 2.6%. 
As a small open economy, Saint  Lucia was highly susceptible to exogenous shocks , as had been 
demonstrated by the COVID -19 pandemic. Small economi es like Saint Lucia tend ed to be more 
harshly impacted by external shocks, and also typically took longer to recover. Climatic events such 
as hurricanes , as well as other problems associated with climate change such as sea level rise and 
coastal erosion , were also of great concern to Saint  Lucia. These tend ed to impact on the countr y's 
risk profile, especially where investors were concerned.  He went on to say that Saint Lucia was a 
net importer of FDI . Net inflows of FDI into Saint  Lucia in 2019 amounted to approximately 
USD 30.6 million , which was a decline of just over 23% compared to the previous year. FDI 
represented nearly 15% of GDP in 2019 for Saint  Lucia. When total exports of goods and services 
were combined with net FDI inflows, Saint  Lucia receive d just over USD  1.2 billion  – more than half 
of its GDP – from participati ng in the global economy. This underscore d the importance of the 
international economy for Saint  Lucia's economic prospects.  There were several  pull factors  that 
made Saint Lucia an attractive location  for FDI . These include d a stable Government exemplified by 
a peaceful transition of power, an independent judicial system , and respect for the rule of law . Its 
geographic location – including its proximity to North and South  America  – made Saint Lucia a  useful 
destination for investors who wanted to  target th ese large markets. Saint  Lucia was a  party to 
bilateral investment treaties (BITs) with Germany and the United  Kingdom , and also had BITs with WT/COMTD/SE/M/40  
 
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  Costa  Rica, Colombia and several other countries in Latin America.  It was additionally  a party to a 
number of treaties with investment provisions . Saint Lucia was a member of two important regional 
economic groupings, which were the Caribbean Community (CARICOM) Single Market and Economy, 
and the  Organi zation of Eastern Caribbean States (OECS) Economic Union. Membership in these 
groupings provided regional and international  market access for investors domicile d in Saint  Lucia, 
which  compensated for Saint  Lucia's small domestic mark et. This membership also allowed 
Saint Lucia to have access to a wide pool of labour from across the region . Furthermore, Saint  Lucia 
had a number of shovel ready projects available  that were already approved, and awaited interest 
from foreign investors . 
19.   In terms of opportunities for FDI, he said that Saint Lucia ha d a competitive advantage in 
tourism . This included resort development  and ancillary services, specialty restaurants, 
entertainment, and health and wellness facilities. Opportunities were also being explored in  
agro-processing and manufacturing , as well as  in infrastructure and other services  – including ICT, 
business process outsourcing and renewable energy. Other opportuni ties available to investors 
include d the Citizenship by Investment Programme,  as well as a free zone and special development 
areas regime , and a headquartering regime . Furthermore, as part of the wider OECS grouping, 
Saint Lucia had an interest in attracting investment in areas such as clean energy, sustainable 
agriculture and the blue economy.  However, there were also several challenges in the domestic 
environment that need ed to be addressed , some of which were  institutional . In this  regard, e fforts 
were being made to modernize  and digitize the delivery of government services so as to make the 
investment environment more predictable in terms of delivery and project approval . Improvements 
were being made to the infrastructure in order to accommodate new investments , and l egal and 
regulatory regimes  were being update d. Initiatives were being taken to more effective ly collect, 
analy ze and shar e information to guide government  decision -making and investor  due diligence. 
Investment promotion activities were being enhanced in target market s. There were also some 
challenges with respect to the external environment. These relate d to competition over a  limited 
supply of FDI in traditional sectors, as well as global uncertainty and rising protectionism. In addition, 
he believed that there was tremendous scope for countries  to do more in terms of seeking to 
incentivize their capital exporters to invest in SVEs such as Saint  Lucia, particularly in sectors that 
contribute d to sustai nable development and the achievement of  the SDGs.  In closing, he said that 
several  credible  reports predicted that FDI w ould plummet in 2020 , possibly by as much as 40%,  
due to the COVID -19 pandemic. Th e declining trend for FDI was expected  to continue  into 2022. 
Given the importance of FDI to Saint  Lucia's economy, th e projected decline in global FDI flows was 
of major concern. It underline d the need for relevant support to be extended to SIDS and SVEs to 
build resilience  and to improve their capacity to attract FDI .  
20.   The Chairman  opened the floor for questions or comments from delegations.  
21.   The representative of Guatemala , on behalf the SVE G roup, noted that the presenter from the 
ITC had mentioned the opportunit ies for small economies  in attract ing efficiency -seeking FDI . In this 
regard, she asked if the ITC presenter could share some thoughts on how to attract  this type of  FDI 
without having  to face a race to the bottom, where costs were reduced to  very low levels . She 
continued by asking the presenter from UNCTAD whether he saw any difficulties for MSMEs  in trying 
to include sustainability in their production lines, or in the services they provided. She explained that 
some resistance had been observed from the private sector  – and especially from  MSMEs  – on this 
issue, due to  the cost implications . She also asked the presenter from the  WTO if he believed that 
the investment facilitation initiative at the WTO had the potential to improve o n the regulatory 
framework s of the participating countries. In addition, s he highlighted the importance of the services 
sector for SVEs, and shared her view that this sector would expand during the  COVID -19 pandemic. 
She asked the WTO presenter whether he had already been able to identify s uch trends in the 
services sector . 
22.   The representative of the  Republic  of Korea  expressed appreciation to the presenters. He said 
that b etter addressing the multi -faceted obstacles facing small economies call ed for a fuller picture 
of the facts and figures . Stronger collaboration between the three Geneva -based economic agencies 
could produce the synergy needed for a more holistic picture. The recently launched SDG Trade 
Monitor was an  example of what greater collaboration c ould achieve. With regard to  investment in 
particular, he observed that small economies were taking active part in  the ongoing discussions in 
the joint initiative on investment facilitation  and had already highlighted some of their priorities. 
These include d the need to insulate the investment facilitation framework from existing and future 
investment treaties, the need to encourage capital exporting states to incentivi ze outward WT/COMTD/SE/M/40  
 
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  investment in a manner that promote d sustainable development in the host country , and the need 
for technical assistance and capacity building for SVEs and LDCs . He also believed it was worth 
mention ing that two of the largest multilateral events scheduled for 2021 would  take place in 
economies that were vulnerable and small. Kazakhstan w ould be the first LLDC to host a WTO 
Ministerial Conference, and Barbados w ould be the first among the SIDS to host an UNCTAD 
Conference. His delegation was of the view that the Geneva -based economic agencies could use this  
rare opportunity to further advance the work on SVEs. Finally, he noted that , according to the recent 
issue of UNCTAD's Global Investment Trends Monitor  (GITM) , FDI flows to developing economies 
had decreased by 16 % in the first half of 2020. Although this was regrettable , the silver lining was 
that this figure was less than expected.  
23.   The representative of the United  States  thanked the delegations of El Salvador, Guatemala 
and Saint  Lucia for sharing their experiences. She believed that there was important work  being 
undertaken  and welcomed  the opportunity to hear about  it. 
24.   The representative of China  expressed appreciation to the presenters. Her delegation found 
the conclusions of the presentations very revealing . In addition to highlighting the pressing need for 
small economies to attract FDI, the presentations  highlighted the difficulties that small economies 
faced due to their geographic al location,  their limited resources and their exposure to climate 
challenges. She noted with concern that the increasing uncertainty and volatility of the global 
economy , particularly in light of the downturn following the COVID -19 outbreak, had  stalled 
cross-border investment significantly . This made the challenges facing small economies  even 
greater. Her delegation agree d with what ha d been suggested by the presenters . She also noted  
that external support was much needed for small economies in their efforts to promote trade and 
investment. Mobilizing more resources to help small economies increase investment inflows  would 
be helpful . The Aid-for-Trade initiative could play a role on the multilateral front. In addition,  trade 
and investment facilitation measures would  help, as the reduction of red  tape would create an 
investment -friendly business climate. It was encouraging to see the intensified engagement among 
participating WTO Members, including small economies, in the negotiations o n investment facilitation 
for development. Her delegation firmly be lieved that participants, especially developing countries,  
would benefit from a shared investment facilitation framework. Finally, she reiterate d her 
delegation's  support for the Work Program me on Small Economies. China would continue to 
encourage its enterprises to scale up and diversify their overseas investment s, as part of 
international efforts to create more market demand and jobs for small economies through 
investment.  
25.   The representative of India expressed appreciation to the presenters. It was noted that s mall 
economies were particularly vulnerable to natural disasters and  the extreme impacts of climate 
change. Multilateral support was required for investment facilitation , and to mobili ze resourc es in 
these economies. Moreover, C OVID -19 ha d had a disproportionate impact on small  economies. 
Support was expressed for the interventions by members of the SVE Group, and for the continuation 
of the Work Program me on Small Economies .2 
26.   The Chairman  said that the representative of the ITC had informed him that she had to leave 
the meeting, in light of another commitment. However, any questions  that delegations had on her 
presentation could be sent to her, and she would respond later.  He asked the representatives of 
UNCTAD and the WTO if they wished to say anything mo re, in light of the discussion that had taken 
place.   
27.   The representative of the WTO said that he would respond to the questions from Guatemala. 
He firstly shared his view that  the investment facilitation framework that would come out of the 
discussions at the WTO would be useful for the participants, including small economies. There were 
a number of elements to this. One contribution would be to create a clear and consistent gl obal 
benchmark for investment facilitation. The second would be to support and anchor domestic 
investment facilitation reforms through shared international commitments. The discussions would 
also provide a global forum where technical assistance and capaci ty building needs could be 
discussed, and where an exchange of information could take place on best practices in investment 
facilitation and policies. A multilateral initiative on investment facilitation would therefore contribute 
 
2 Due to technical problems, the representative of India was unable deliver this intervention remotely, as 
was intended. The intervention is r eflected in the minutes of this meeting at the request of the delegation of 
India. WT/COMTD/SE/M/40  
 
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  positively to national ef forts to establish and maintain domestic investment frameworks. With regard 
to investment trends in the services sector, he believed that for many countries there would indeed 
be some differences registered after the COVID -19 outbreak. However, he observed  that the 
proportion of FDI in services had actually been increasing for a number of years. Between half and 
two-thirds of FDI per year went into the services sector. Furthermore, investments in services were 
usually long -term and resilient. He referred to  UNCTAD's most recent World Investment Report, 
which contained information on the number of announced FDI greenfield projects between 2018 and 
2019. It was shown in the report that the decline in announced projects in the services sector was 
much less than  the decline in announced projects for primary products or manufactures. This was 
something to take into account in the post -pandemic economic system.  
28.   The representative of UNCTAD  said that , when setting strategies for small economies to attract 
invest ments, it was necessary to look beyond the perspectives of MNCs . While a n analysis of whether  
FDI was market -seeking, natural resource -seeking or effici ency-seeking was relevant to understand 
the motives of MNCs, it did not take into account  all the issues of interest to the host cou ntry. An 
additional  eleme nt to address was a country's development needs , in particular with respect to the 
sectors of the economy which were  concerned with sustainable development.  Furthermore, it was 
important t o assess what a small economy had to offer to investors, and how it could bene fit from 
investment.  Small economies were in need of infrastructure investment in sustainable development 
sectors such as he alth, education and agriculture. Although the risk -return profile in these sectors 
was not so attracti ve, impact investors were willing  to invest on these terms. To do so, however, 
they required  the appropriate regulatory frameworks and facilities, as well as a demonstration of  
political will.  He also believed that small economies needed to look into smaller manufacturing 
opportunities  in the context of regional or sub -regional value chains , which were  becoming 
increasingly prevalent.  It was possible to attract investments for these types of op portunities, which 
could be beneficial to small economies.  Focusing on b uilding large -scale infrastructure in the context 
of one specific segment of a value chain was be coming less viable.  Market -seeking investments  
would focus on particular region s or sub -region s, and would look into benefiting from nearshoring.  
The global fragmentation of services value chains  would also continue.  These trends , and the other 
elements that he had mentioned in his earlier presentation,  needed to be taken into account  by 
small economies  looking to attract investments . Finally, referring to the intervention by the 
Republic  of Korea, he confirmed that  the recent issue of UNCTAD's GITM  had mentioned  a 16% 
decrease of FDI flows to developing economies in the first half of 2020, which was less than 
expected. The GITM also mentioned  a 75% drop in FDI to developed economies.  In terms of 
greenfield project announcements , which were an indicator of future FDI trends, develop ing 
economies saw a fall of 49%, while the fall  in developed economies was 17%.  The overall FDI 
projection for 2020 was for a decrease of between 30% and 40%, although the outlook remain ed 
highly uncertain . 
29.   The Chairman  said that some requests had been rec eived for the 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.   
30.   The Dedicated Session took note  of all int erventions.  
C. IMPACT OF THE COVID -19 OUTBREAK ON THE TRADE OF SMALL ECONOMIES  
31.   The Chairman  said that the  COVID -19 pandemic ha d had a devastating effect on economies 
all over the world. While this was therefore a global crisis that affect ed all Members, th e CTD and its 
subsidiary bodies ha d a particular responsibility to look into the impact of the crisis on developing 
countries – including LDCs and small economies – and to explore how these countries could  continue 
to benefit from trade opportunities throu gh this difficult period and beyond. He recalled that, at a 
special virtual meeting of the CTD 's Regular Session held on 26  May 2020, Members had exchanged 
views on the impact of the COVID -19 outbreak on the trade of developing countries. Subsequently, 
at the meeting of the Sub -Committee on LDCs held on 30  June 2020, an exchange of views had 
taken place on the trade -related impacts of the COVID -19 pandemic and support measures of 
relevance to LDCs. He was pleased that, at the present  meetin g, Members ha d the opportunity to 
focus on the impact of the COVID -19 outbreak on the trade of small economies.  
32.   The representative of the United  States  said that it was important to examine how trade rules 
could support world trade in response to COVID -19. More specifically, her delegation  was interested WT/COMTD/SE/M/40  
 
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  in how trade rules  – such as those outlined in the Trade Facilitation Agreement (TFA), a s well as  
rules promoting  free flow s of data  – enable d countries to develop their domestic economies and 
trade regimes  and ultimately support world trade in response to COVID -19. As Members pointed out 
at the informal meeting of the Committee on Trade Facilitation on 30 September  2020, the ongoing 
implementation of the TFA was already resulting in greater customs efficiency, more effective 
revenue collection, and better export opportunities. TFA measures continue d to improve 
transparency in customs practices, reduce documentary requirements, and allow for processing of 
document s before goods arrive d. Her delegation embrace d the call to demonstrate leadership by 
advancing trade facilitation , so as  to ensure the smooth and continuous trade in goods.  She 
welcome d developing small economies and LDC s joining the recently released communication by the 
United  States as co -sponsors , and commit ting to the accelerated implementation of the TFA. In 
addition to trade facilitation, trade rules that promote d free flows of data enable d countries to build 
resilience in their supply chains , and u ltimately support the development of their domestic economies 
and trade regimes.  Members also needed to  remember the broader imperative of trade liberalization 
as a critical tool for economic development. For example, t he World  Bank's 2020 World Developmen t 
Report  specifically recommend ed that developing countries undertake deeper trade reforms to 
promote greater participation in GVC s in order to increase growth, create better jobs, and reduce 
poverty. This was an important insight that should not be overlo oked. To conclude, she urged the 
Committee to continue sharing successful examples of economic adaptation, resilience, and 
diversification , while exploring the policy environment needed to foster positive economic change 
during the pandemic and the post -pandemic economic recovery.  
33.   The representative of Sri Lanka  expressed appreciation for the presentations made under the 
previous agenda item.  She believed that the two topics being discussed at the present meeting  were 
equally important during a pandemic of an unimaginable magnitude. COVID -19 was an 
unprecedented crisis , and had exposed the many vulnerabilities of small economies that were heav ily 
depend ent on international trade. The crisis had spread through almost all economic sectors  in 
Sri Lanka , but mainly affected the sectors  that contribute d to the country 's foreign currency 
reserve s. While the primary focus of the Government was the health and safety of its citizens , there 
were other important challenges that demanded the Government 's immediate attention . These  
includ ed the revival of the economy, job creat ion, and ensuring stable ma rkets and supply chains.  
Tourism was a  particularly  important sector for Sri  Lanka, accounting for about 5% of the economy. 
Out of the population of 22  million, it was estimated that over 2  million people were directly or 
indirectly making their living from tourism . A year before the pandemic, Sri  Lanka went through a 
difficult time following a man -made disaster which killed over 250 people , including foreigners. An 
incident which  affected mainly  the tourism sector  had moved a  country 's economic development 
backwards , as Sri Lanka 's economic ranking was downgraded from upper -middle income country  to 
lower -middle income countr y. This clear demonstration of the vulnerability and fragility of the 
Sri Lankan  economy  was applicable to other SVEs as well.  Turning  to the impact of the pandemic, 
she said that it had led to the worst economic shock in recent history. Due to the decreased demand 
for exports and tourism, the Sri Lankan rupee had depreciated considerably against  the US dollar. 
In 2019, the contribution of foreign remittances to GDP was between 7% and 8%, which cover ed 
84% of the exchange shortfall. However, following the job losses of migrant workers and their return  
to Sri  Lanka , remittances to the country  were now negligibl y low.  
34.   The textiles and a pparel sector was one of the highest contributors to Sri Lanka 's exports , 
with over US D 5 billion in export revenue. Based on the Purchasing Managers ' Index (PMI) data as 
at February  2020 provided by the Central Bank of Sri  Lanka, new orders and employment  had slowed 
down  following the plunge in global demand. The COVID -19 outbreak ha d affected Sri Lanka's 
exports to many major export destinations including  Italy, which was one of the largest buyers of 
textiles and garments. Further more, imports of raw materials had been held up due to supply -side 
disruptions following the outbreak. As a result, industry experts predicted  a revenue loss of  one-third 
between March  2020 and September  2020, which  was likely to increase if the outbreak continue d to 
spread.  Tourism was the sector that was most vulnerable to the COVID -19 crisis. Social distancing 
and quarantine requirements, as well as travel disruptions  and restrictions, would  inevitably affect 
the glob al tourism industry , which most SVEs were heavily dependent on . The recovery of this 
industry , which had ground to a halt in Sri  Lanka, would  largely  depend  on the recovery of the key 
source markets. Thousands of direct and indirect jobs were at risk , including from spillover effect s 
in the transport ation sector.  Countries that ha d debt obligations almost equal to their GDP face d 
greater challenges in the post -pandemic period . Repaying  debt obligations and debt service charges 
become daunting, as the majority of the sectors which normally generated foreign income were not  
able to contribute anything.  In such instances, the collaborative action of partners, debt providers WT/COMTD/SE/M/40  
 
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  and institution s was needed so as to ensure that countries would not fall further into debt traps. 
Consideration needed to be given to  debt relief and financial stimulus packages for SVEs. It was 
important to provide  the necessary financial support to such countries , in order to  enabl e them to 
address various  socio-economic issues that were caused or aggravated by the pandemic. In closing , 
she said that an analysis of the effects of the COVID -19 would  not in itself  help countries overcome 
the challenges created by the pandemic . Effective support measures by the international communit y 
were key to overcom ing these challenges , including in terms of policy considerations, appropriate 
Aid for Trade and other technical s upport initiatives.  
35.   The representative of The Bahamas  indicated  that her intervention was an updated version of 
the statement delivered by her delegation  at the special meeting of the General Council on COVID -19 
trade -related measures which was held on 15 May 2020. She said that The Bahamas was an 
archipelagic SVE. Its economy , which  was open and highly dependent on tourism and financial 
services , had been negatively impacted by the spread of the coronavirus.  In addition , its population 
faced a high prevalence of pre -existing health conditions , which made it particularly susceptible to 
COVID -19. As such , The Bahamas continu ed to see an increase in infe ctions and mortality rates, 
with a significant health and economic fallout – all in the midst of a highly active hurricane season.  
The Government ha d taken immediate steps to contain the virus spread by re -introducing curfews 
and lockdowns . These  were now localized in order to minimize the effect on the economy , since not 
all islands were COVID -19 hotspots or ha d COVID -19 cases. In fact, most COVID -19 cases were 
contained on 4 of the 15 major islands of the archipelago , which unfortunately were also signifi cant 
contributors to the economy. To maintain the low infection rates on lesser affected islands, a 
negative COVID -19 test was now required for inter -island travel by both nationals and tourists.  While 
partial and complete lockdowns and curfews ha d been effective in flattening the curve of the 
pandemic and saving lives, it ha d adversely affected Government spending, revenue generation, 
borrowing and economic activity , particularly in the tourism sectors . This had  caused a significant 
contraction to the economy. The Government continue d to implement its fiscal and economic plans 
to manage the ongoing crisis, mitigate further economic fall -out and stimulate the economy.  These 
plans firstly includ ed m aintaining critical expenditures in priority areas su ch as public health, 
unemployment support, food assistance and other forms of emergency relief.  Reviving the tourism 
industry  was another element of these plans,  as Bahamians anxiously and patiently await ed the 
opportunity to welcome tourists back after a protracted period of absence which ha d negatively 
impacted the economy. Tourism, tourism -driven construction and manufacturing account ed for 
approximately 60% of GDP , and directly or indirectly employ ed half of the country's labour force. It 
was for t his reason that the Government ha d decided, effective 1  November  2020, to eliminate the 
mandatory 14 -day quarantine period, so as  to incentivize tourists to return . The quarantine period 
had been replace d by a mandatory negative COVID -19 test for anyone entering The  Bahamas by air 
or sea , while v isitors might  be required to take rapid COVID -19 tests during their stay  as well .  
36.   The Government was also working on b olstering financial services , which was  the nation 's 
second -largest industry behind tourism . The financial services industry  was seeking to keep pace 
with a 21st century technology -focused world , so as to  maintain its ranking as one of the top financial 
services jurisdictions in the region , by improving regulation and engagement wi th local and 
international stakeholders. Efforts were additionally being made to a dvanc e trade as the third pillar 
of the economy , thereby  ensur ing greater economic stability and diversification as the country 
grapple d with the global pandemic. While the v alue of Bahamian exports totalled over 
USD 500 million in 2018, there was still much room for growth. Trade and industry -related policy 
reform w ould therefore continue to play a significant role in the economic recovery  of The  Bahamas . 
Another area of support was to entrepren eurs, in particular through the provision of government 
loans  to expand and create businesses and jobs. There  was a  recognition that , in the era of 
globalization , Bahamian businesses needed to be  empowered to export their goods and services to 
customers abroad. In terms of strengthening and diversifying the economy , the Prime  Minister ha d 
established an Economic Recovery Committee  (ERC) , made up of persons from the public and private 
sectors, to make recommendations on the long -term economic recovery of The  Bahamas. In 
September, the ERC had presented its Summary Report , which proposed a broad range of reforms 
and recommendations intended to seed new industries and provide economic opportunities to 
expand existing ones;  to make The  Bahamas more attractive for domestic and international 
investment; and to make certain bureaucratic systems were more efficient and less burdensome for 
citizens and businesses.  In closing, she said that the global economic shock caused by the COVID -19 
pandem ic had underscored the economic vulnerability of countries  like The  Bahamas. Studies 
indicate d that the contraction of the economies of such countries w ould be significantly larger than 
that of LDCs and LLDCs. The continued need for international cooperation w ould therefore be critical WT/COMTD/SE/M/40  
 
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  to ensure that this group of countries wa s not left behind, and that they could strengthen their health 
response to the pande mic, while safeguar ding their food security and their ability to achieve the 
SDGs .3 
37.   The representative of Guatemala  stressed the importance to her delegation of the present 
discussion. She believed that , in order to find solutions to the economic and trad e issues caused by 
the COVID -19 pandemic, it was first important to understand the exact nature of the difficulties 
being experienced by the most vulnerable countries, including  the SVEs . She said that t he COVID -19 
pandemic had taken the world by surprise , and even the most advanced economies were facing 
extreme challenges in effectively responding to the health emergency. Guatemala was one of the 
first Latin American countries to take measures to prevent the entry of COVID -19 into its territory. 
Temporary hospitals were built to treat those in the country affected by the virus. A Presidential 
COVID -19 Emergency Response Commission was created, with the aim of closely monitoring 
statistics on, inter alia, the infections, treatment and deaths caused by COVID -19. Furthermore, th e 
Commission was tasked with issuing government directives and decisions nec essary for the 
establishment of the health rules required to prevent the spread of the virus.  She explained  that the 
COVID -19 virus was destroying the sources of income of Guatemalans in three ways. It had firstly 
caused a decline in the various economic a ctivities that facilitate d the spread of the disease. It had 
also reduced intentions to invest in the country , and had c aused a fall in the domestic and 
international consumption of Guatemalan products.  
38.   In response to these problems, an Economic Recovery Plan for Guatemala had been  drawn 
up, spearheaded by the Ministry of the Economy. Th e plan took into account economic indicators, 
key insights from leaders and representatives in various productive sectors, and plans and policies 
implemented by other count ries. Although e conomic activities had resume d in a gradual and 
responsible manner from 26  July 2020, this was  not synonymous with economic recovery. In this 
regard, t he plan was based on three strategic priorities , which were concerned with recovering and 
creating jobs , attracting more strategic investment, and promoting the consumption of Guatemalan 
goods and services at a national, regional and global level.  With regard to job recovery, action s 
would focus on creating and pro moting biosafety protocols, facilitating access to financial 
instruments, and boosting value chains with strong potential to create jobs.  There would also be an 
emphasis on increasing the adaptability of the labour market, while providing more security. In the 
area of  attracting investment s, the plan s ought  to improve the business environment and create a 
legal framework conducive to investment, while also identifying productive infrastructure projects in 
the country. In order to promote Guatemalan goods an d services, the plan focuse d on identifying 
new foreign trade opportunities and restoring consumer confidence. She also noted that, i n response 
to the pandemic, an Economic Reactivation Fund for MSMEs  was established. This  fund provide d 
financing to MSMEs struggling as a result of the economic crisis caused by the pandemic. In addition, 
a job protection fund was created to support workers whose jobs were put on hold during the 
pandemic . In concluding, she said that t here was still a long road ahead, particu larly since a second 
wave of infections was expected , as had already been seen in Europe and Asia. In terms of the 
support that Guatemala  could receive, she indicated that initiatives such as Aid for Trade could help 
in reviving the Guatemalan  economy. Her delegation was also  interested in exchanging best 
practices and hearing other countries' experiences with their economic recovery plans.  She indicated 
that she would move on to make a brief intervention on behalf of the SVE Group.  
39.   The representative of  Guatemala , on behalf of the SVE Group , expressed appreciation for the 
opportunity to discuss the impact of the COVID -19 outbreak on the trade of small economies. The 
SVE Group had decided to share the  outcomes of th e present  meeting with the CTD's session  on 
Aid for Trade, in the context of the Aid-for-Trade meeting that would be held  to discuss the effects 
of the COVID -19 pandemic . 
40.   The representative of  Ecuador  said that i nequalities were one of the greatest challenges facing 
developing countries. The COVID -19 pandemic ha d had a profound effect on MSMEs . Many jobs ha d 
been lost , and the manner  of doing business ha d changed dramatically. Over just a few months, the 
planet had taken  a majo r step towards digitalization, which had caught many economic and 
government actors off guard. Almost one year after the outbreak of the pandemic, winners were 
starting to emerge . However, there was an urgent need to take action to reduce inequalities and 
provide opportunities to allow the most vulnerable to recover.  In Ecuador, like in many other 
 
3 An abbreviated version of this intervention was delivered at the meeting by the representative of The 
Bahamas. The full intervention is reflected in the minutes at the req uest of the delegation of The Bahamas.  WT/COMTD/SE/M/40  
 
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  countries, the measures taken to prevent the spread of the COVID -19 pandemic had a devastating 
effect on the economy. According to optimistic estimates, Ecuador 's GDP w ould contract by 9%.  
Economic recovery needed to take into account climate change , as well as the tendency of many 
actors to adopt protectionist policies and limit trade.  
41.   The Dedicated Session took note  of all interventions . 
42.   The Chairman  said that  he wished to remind Members  that, in preparation for the Twelfth 
WTO Ministerial Conference  (MC12) , the Dedicated Session would need to  approve a report to the 
General Counci l. Going by past practice, the report  would need to contain a summary of the work 
undertaken since the last Ministerial Conference, and would also need to contain the elements of an 
agreed text for a Ministerial Decision, including with regard to future work. He inform ed the 
Committee that he would  be close ly following Members ' deliberations concerning the dates for MC12, 
so that the work of the Dedicated Session could be planned accordingly. He would  remain in touch 
with Members as to when a meeting of the Dedicated Session could  be convened in order to add ress 
the necessary preparatory work for MC12.  
D. OTHER BUSINESS  
43.   No matter was raised under "Other Business ". 
44.   The meeting was adjourned . 
__________