INF/MSME/R/43  
 
4 April 2024  
(24-2917) Page: 1/5 
  Original: English  
 
INFORMAL WORKING GROUP ON MSMES  
OPEN -ENDED MEETING OF 19 MARCH 2024  
Summary of discussions  
The following communication, dated 4 April 2024, is being circulated at the request of the 
Coordinator of the Informal Working Group on MSMEs, Ambassador Matthew Wilson (Barbados).  
 
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1.1.  The MSME Informal Working Group (MSME Group) met for its first open -ended meeting of the 
year on 1 9 March 2024. A total of 61 delegations1 attended the hybrid meeting, including 
18 non-working Group members (Angola; Bangladesh; Benin; Burundi; Cabo Verde; Cambodia; 
Comoros; Curaçao (WTO Observer); Maldives; Mali; Mozambique; Niger; Rwanda; Samoa; 
Tanzania; Thailand; Timor -Leste; and Togo).  
1.2.  The Group welcomed its newest member, the Democratic Republic of the Congo, bringing the 
total number to 99 MSME Group members.  
1.3.  At the invitation of the MSME Group Coordinator, Comoros and Timor -Leste briefed the Gro up 
on the role MSMEs played in their WTO accession process. The importance of simplifying business 
administration and improving access to finance were noted, as were the anticipated benefits of 
access to new tools and trade protection for MSMEs following t heir WTO accession.  
1.4.  The Coordinator, Ambassador Matthew Wilson (Barbados), began the meeting with an overview 
of MSME events and deliverables at MC13. On 25 February, the MSME Group joined the Informal 
Working Group on Trade and Gender and the Trade and th e Environmental Sustainability Structured 
Discussions (TESSD) for a session titled "Paving the way to strengthening trade inclusiveness 
through WTO Members' initiatives" . The Groups shared their outputs and the MSME Group launched 
its Compendium on MSME Pr ovisions in Authorized Economic Operator Programs 
(INF/MSME/W/47/Rev.1 ). The Compendium on Access to Finance by Women -Led MSMEs 
(INF/MSME/W/46/Rev.1 ) was later launched that same afternoon as part of the International Trade 
Centre (ITC) High -Level Event on Women and Trade. MSMEs were also included in paragraph 17 of 
the Abu Dhabi Ministerial Declaration ( WT/MIN(24)/DEC ) and featured heavily during the 
26 February Ministerial Conversation on Trade and Inclusion.  
1.5.  Members updated the Group on their work to implement the 2020 December Package of 
Recommendations and Declarations including regular trade information updates to UNCTAD and the 
WTO. Chinese Taipei updated the Group about their 5th trade policy review held in November  2023, 
which included MSME information as per Annex 1. The International Trade Centre ( ITC) also joined 
 
1 Angola ; Argentina; Australia; Austria; Bangladesh ; Barbados; Benin ; Brazil; Burundi ; Cabo Verde ; 
Cambodia ; Canada; Chile; China; Colombia; Comoros ; Costa Rica; Côte d'Ivoire; Curaçao (WTO Observer) ; 
El Salvador; European Union; Finland; France; The Gambia; Germany; Guatemala; Hong Kong, China; 
Hungary; Japan; Korea, Republic of; Malaysia; Maldives ; Mali; Mexi co; Montenegro; Mozambique ; Myanmar; 
Niger ; Norway; Peru; Philippines; Poland; Portugal; Romania; Russian Federation; Rwanda ; Samoa ; Saudi 
Arabia, Kingdom of; Spain; Switzerland; Chinese Taipei; Tanzania ; Thailand ; Timor -Leste ; Togo; Türkiye; 
Ukraine; Unit ed Kingdom; United States of America; Uruguay; Viet Nam (non -MSME Group members are in 
italics).  INF/MSME/R/43  
 
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  to present updates on the Global Trade Helpdesk in relation to Annex 2 and in response to the Jaipur 
Call for Actio n, including availability of the platform in two new languages, Bahasa and Mandarin, 
and leveraging technology to increase accessibility through a chatbot, AI -assisted search, and 
AI-enhanced translation and training.  
1.6.  Discussions by members focused on the way forward for the MSME Group. Members expressed 
an interest in deep -dive experience sharing sessions related to the two compendia released at MC13 
on Access to Finance by Women -led MSMEs and on AEO Programs with a view to developing policy 
guidance. Othe r areas of interest included trade digitalization, good regulatory practices, improved 
transparency on trade regulation, good practices for tourism and innovation ecosystems. Members 
also stressed the importance of continuing to engage directly with MSMEs,  such as through the 
Group's new MSME Spotlight at regular meetings. Continued collaborat ion both internally at the WTO 
with other committees touching on MSME -related work and with other international organizations 
working towards the same objectives of MS ME trade -inclusivity was also welcomed. Finally, the need 
for ongoing support of the Trade4MSMEs website was underscored.  
1.7.  A panel discussion on MSMEs, sustainability and reporting requirements was held. Moderated 
by the ITC, the discussants, Kate Kallot, t he founder and CEO of the private company Amini, and 
Steve Capell, from UN/CEFACT, brought the issue of increasing regulations and the challenge of 
compliance for MSMEs to the Group's attention. Many regulations and reporting requirements are 
designed base d on databases from developed economies and with their industry structures as a 
basis, which are often difficult to apply to developing economies. Amini is working to develop new, 
more accessible sources of information for these businesses. UN/CEFACT has s eparately developed 
recommendation 49 to streamline traceability reporting requirements and support MSME 
participation in increasingly regulated markets.  
1.8.  The MSME Group also received presentations from the United Nations Conference on Trade and 
Development  (UNCTAD), the Universal Postal Union (UPU) and the World Trade Centers Association 
(WTCA). UNCTAD presented their recent report titled Promoting International Investment by Small 
and Medium -sized Enterprises and noted that out of the hundreds of internati onal investment 
agreements (IIAs), only 7 have MSME -specific provisions. This is despite the challenges MSMEs face 
for outward foreign investment. The UPU briefed the group on the parcellation  of post with the 
advent of ecommerce and the challenges MSMEs f ace to deliver their packages. The UPU is actively 
working with its members to facilitate trade for MSMEs via the post. The WTCA presented their 
organization and their work to facilitate relationships between MSMEs wishing to find trade partners. 
The WTCA noted their particular strength in having access to business networks to share information 
on trade tools or updates and noted their interest to collaborate with the MSME Informal Working 
Group.  
1.9.  The second "MSME Spotlight", EziDrops, was introduced to the MSME Group by the Institute of 
Export and International Trade (IOE&IT), the MSME Group's Strategic Partner on the Trade4MSMEs 
website. EziDrops is a UK small business that has successfully navigated the complexity of exporting 
medical devices that administ er eye and ear drops. They shared their experience with navigating 
the complexity of the fragmented global patent system as well as the bureaucratic difficulties of 
accessing available program finance for small businesses.  
1.10.   Lastly, the MSME Group approved r egular observer participation by the organizations in the 
Trade4MSMEs Network.2 
1.11.   The next meeting of the MSME Group is planned for 9 July 2024. The Coordinator also 
informed the Group of the high -level panel discussion and  the 2024 Small Business Champions  
 
2 The Asian Development Bank (ADB); European Bank for Reconstruction and Development (EBRD); 
Inter American Development Bank (IADB ); International Labour Organization (ILO); International 
Telecommunication Union (ITU); International Trade Centre (ITC); Organisation for Economic Co -operation and 
Development (OECD); UN Commission on International Trade Law (UNCITRAL); UN Economic Commi ssion for 
Africa (UNECA); UN Economic Commission for Europe (UNECE); UN Economic Commission for Latin America 
and the Caribbean (UNECLAC); UN Economic and Social Commission for Asia and the Pacific (UNESCAP); UN 
Industrial Development Organization (UNIDO);  the Universal Postal Union (UPU); World Bank; World Customs 
Organization (WCO); and World Intellectual Property Organization (WIPO) . INF/MSME/R/43  
 
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  awards planned for 27 June, MSME Day, as part of the Aid for Trade Global Review. Additional 
scheduled dates for regular meetings in 2024 include 14 October, and 10 December.  
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  INF/MSME/R/43  
 
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  ANNEX  
PRESENTATION SUMMARIES  
1  DISCUSSION ON MSMES, SUSTAINABI LITY AND REPORTING REQUIREMENTS  
1.1.  Moderated by Mathieu Lamolle, Senior Advisor, Trade for Sustainability Development at the 
International Trade Centre (ITC), Kate Kallot, Founder and CEO of Amini and Steven Capell, 
Vice-Chair of UN/CEFACT engaged in a discus sion on the challenges of sustainability and reporting 
requirements for MSMEs. MSMEs generally face difficulties complying with regulation. For example, 
when it comes to the EU Deforestation Regulation (EUDR), this regulation has no implementation 
mechanis m, and it is leading some global companies to change to suppliers from economies where 
supply chain verification is easier. This is impacting developing economy suppliers, many of whom 
are small -scale farmers without the digital connectivity, knowledge, or  skills to confirm the 
environmental sustainability of their operations. Additionally, many self -verification tools are using 
technology that are not calibrated for the small farms in developing economies and which lack 
historical data to verify no defores tation took place. Amini is advocating for the following to use 
technology to facilitate MSME compliance: 1) building a global data standard that defines good data 
for regulatory objectives like EUDR; 2) making data open so that firms of any size, but espe cially 
MSMEs, can access them equally; 3) ensuring the Global South retains sovereignty over its data; 
and 4) providing finance for a fair transition to sustainability, especially through education. 
UN/CEFACT has developed the UN Transparency Protocol (UNT P) from Recommendation 49 to make 
the information provided to the growing number of individual verification platforms interoperable 
through a protocol that allows conforming data indicating regulatory compliance to be checked, no 
matter the software. Trade d products are given a digital passport that can be scanned by humans 
and machines with required sustainability metrics, thus allowing users, especially MSMEs, to 
maintain and monetize their data related to their sustainability track record through any too l of their 
choice . 
2  PROMOTING INTERNATIONAL INVESTMENT BY SMALL AND MEDIUM -SIZED 
ENTERPRISES, UNCTAD  
2.1.  Dr. Amelia U. Santos -Paulino, Chief of the Investment Research Section at the UN Conference 
on Trade and Development (UNCTAD) presented a report on Promotin g International Investment by 
Small and Medium -sized Enterprises. The culmination of a three -year study, the report indicates 
that the global landscape is not favorable to foreign direct investment (FDI) by MSMEs. Many of the 
challenges MSMEs face for FDI are the same as those to trade internationally, including access to 
finance/capital, access to information, access to adequate skills and technology, relatively higher 
regulatory burdens and international competition. This is in spite of the fact that FDI by MSMEs is 
important for development in host economies because it is more flexible, relies more on local firms 
and does not crowd out domestic firms in the same way as FDI by large MNEs. FDI by MSMEs is also 
frequently more regional and has been shown to facilitate the establishment of regional value chains. 
Further, FDI improves MSME productivity in the source economy and increases their resilience. 
However, there is a strong policy bias favoring large firm investment over MSMEs. Few international 
investm ent agreements (IIAs) refer to MSMEs and there is no multilateral forum for discussions of 
this kind. The study concludes that digital single windows to facilitate MSME access to information 
and MSME chapters in IIAs would both work to support MSME FDI. Fu rther, the report recommends 
adjusting services to ensure they meet MSME needs; facilitating MSME access to capital; simplifying 
regulatory and administrative frameworks; establishing support networks; and promoting MSME 
international trade participation t o enhance their international exposure.  
3  OVERVIEW ON TRADE INCLUSION OF MSMES VIA THE POST, UPU  
3.1.  Houssem Gharbi, SME Growth and Trade Expert at the Universal Postal Union (UPU), joined 
the MSME Group to provide an overview of the importance of the post for M SMEs and the overall 
economy, especially with ecommerce and the parcellation of trade. TradePost project to simplify and 
harmonize the import -export  transit process for MSMEs. According to a 2018 study , 84% of 
cross-border goods bought online are small pac kages weighing up to 2kgs, and the World Bank 
estimates that currently the postal network handles two thirds of cross -border parcels, many of 
which are shipped by MSMEs. Unfortunately, MSMEs face many challenges when it comes to shipping 
products and ecomm erce, including complex procedures; high shipping and transaction costs; INF/MSME/R/43  
 
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  limited access to finance; lack of training and access to information; costs and requirements of 
ecommerce platforms; international payments; and trust and verification. Recognizing t hese 
difficulties, the UPU developed the Trade Post program to optimize MSME inclusion and facilitate the 
trade process. The objective of the program is to simplify and harmonize the international trade 
process by using the postal infrastructure as a one -stop shop for all trade formalities. Trade Post 
currently has a pilot in Morocco with additional projects to be implemented in C ôte d'Ivoire and 
Nigeria in 2024. Digital solutions are also encouraged as they can fast -track trade integration and 
make informa tion available online , provide electronic payment options for postal transactions , allow 
for acceptance of digital postal documents , permit pre -arrival processing , and facilitate customs 
cooperation. Digital single windows are critical to make these kinds of services and other important 
trade information readily available.  
4  WORLD TRADE CENTRE ASSOCIATION PRESENTATION  
4.1.  Robin van Puyenbroeck, Executive Director – Busine ss Development of the World Trade Centers 
Association (WTCA), presented WTCA's work to support MSME trade participation. With 320 centers 
in 120 economies around the world, the vast majority of WTC's membership are MSMEs. The WTCA 
organizes bilateral trade  missions to help members find business partners, providing support to their 
members through global trade experts and strategic partnerships with the UN and other industry 
associations. WTCA provides information on, and access to, tools available for MSMEs  related to real 
estate, such as : office space; events, including trade shows and exhibitions; global trade guidance; 
connection tools, including WTCA Connections Portal; and industry resources such as the UN Global 
Compact and the Global Trade Helpdesk. T he WTCA provides a direct link between policymakers and 
the WTC business network, which is important for sharing information about regulatory updates or 
new tools like the Trade4MSMEs website. The WTCA sees an opportunity to link WTC sites to 
individual co untry pages in the Trade4MSMEs website and to partner on MSME consultations. 
Throughout the year the WTCA has a number of events including the Global Business Forum, WTCA 
Member Forum and regional meetings to bring members together, share strategies and re view local 
challenges where there might be opportunities for collaboration.  
 
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