INF/MSME/W/29  
 
26 November 2020  
(20-8577) Page: 1/6 
  Original: English  
 
INFORMAL WORKING GROUP ON MSMES  
CONSOLIDATION OF POTENTIAL TOPICS AND ACTIONS  
FOR FUTURE WORK BY THE IWG ON MSMES  
The following document, dated 26 November  2020, is being circulated at the request of the 
Coordinator of the Informal Working Group on MSMEs.  
 
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This document consolidates potential topics and actions for  future work by the Informal Working 
Group on MSMEs. This document is a mere consolidation of suggestion s made in different contexts 
and by different stakeholders. It does not imply any endorsement by the Group. It is up to Members 
to decide which topics to work on.  Suggested topics are framed within four sections:  
 
• The Trade4MSMEs  platform (i.e. which used to be referred to as "the MSME web platform") ; 
• The i mplementation of IWG's recommendations involves a few follow -up actions by the 
WTO secretariat and topics that could be monitored by the IWG ; 
• IWG's  recommendations include topics that could be further explored ; and  
• Topics suggested by different stakeholders, including IWG members, the private sector, the 
G20, and webinar speakers .  
1  TRADE4MSMES  
One IWG member suggested to review the operationalizatio n of the Trade4MSMEs platform  
(Switzerland) . 
Establish ment of  a task force to oversee the development of the Trade4MSMEs  platform.  
2  IMPLEMENTATION OF IWG'S RECOMMENDATIONS  
Follow -up actions by the WTO secretariat  
Trade Policy Reviews . The recommendation calls  on the WTO Secretariat to establish and 
maintain a database of MSME -related information collected or provided by Members in their Trade 
Policy Reviews ( INF/MSME/3/Annex 1 ). 
Access to finance and cross -border payment s. The declaration  invites the WTO Secretariat 
to organize, with the support of relevant international organizations, information sessions on 
trade-related aspects of MSME s' access to finance and cross -border payments including, for 
example, the global Legal Entity Identifier (LEI ) (INF/MSME/3/Annex 6 ). 
IWG monitoring  
Integrated Database (IDB) . The text recommends that IWG members support the 
implementation of the May 2019 IDB by voluntarily providing additional information to the INF/MSME/W/29  
 
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  IDB and/or by enabling the automatic electronic transmission of their tariff or import data to the 
IDB (INF/MSME/3/Annex 5 ). 
Global Trade Helpdesk (GTH) . IWG members agree to support the GTH by voluntarily 
submitting information set out in the  annex to the text (INF/MSME/3/Annex 2 ). The text instructs  
the Informal Working Group on MSMEs  to review the operationalization of the declaration no later 
than two  years after the adoption of th e declaration.  
3  OTHER FOLLOW -UP ACTIONS AND TOPICS FOR FURTHER EXPLORATION  
Trade facilitation . The text (a) e ncourages  WTO Members, when sharing their 
TFA implementation experiences in the WTO Committee on Trade Facilitation, to illustrate, as 
appropriate, how the interests of MSMEs are taken into account in order to identify and promote 
good practices for the implementation of the TFA in a MSME -friendly man ner; (b) i nvites  
WTO Members, the WTO Secretariat and donor organizations to work together in order to design 
and provide capacity building and technical assistance that could consider the trade needs and 
challenges of MSMEs on the implementation of the TF A; and (c) calls on Members to endeavour to 
identify additional opportunities for trade facilitation and promote best practices, including the 
adoption of digital solutions  to speed up customs procedures ( INF/MSME/3/Annex 3 ). 
Domestic regulatory development . The recommendation encourages the exchange of 
experience on involving MSMEs  in domestic regulatory development ( INF/MSME/3/Annex 4 ). 
Access to finance and cross -border payment s. The declaration calls on Members to 
exchange bes t practices and information on technical assistance related to on trade -related aspects 
of MSMEs' access to finance and cross -border payments.  
4  SUGGESTED TOPICS FOR THE FUTURE WORK OF THE IWG  
Different sources have been used to compile the following list of  potential topics for future work 
of the IWG. First, IWG members suggested various topics for consideration  by the IWG, which were 
compiled in document INF/MSME/W/21/Rev.3 . These proposals are referred to as IWG membe rs' 
suggestions  below. Second, in response to the Chair's request for ideas  following the October 2020 
meeting , some IWG members suggested additional  topics. These topics are highlighted with the 
name of the IWG member . Third, the private sector has also made various  suggestions , some of 
which were  consolidated in document INF/MSME/W/17  (issued in November 2019). Further 
proposals were received later. These proposals are referred to as private secto r's proposals  
below. Fourth, the Communiqué of the G20 Trade and Investment Ministerial , circulated as a 
GC document, includes an annex dedicated to MSMEs  and entitled "G20 Policy guidelines on boosting 
MSMEs' International Competitiveness" (see Annex II i n WT/GC/221 ). Proposals contained in the 
MSME Annex of the Communiqué  are referred to as G20 proposals  below.  Finally, some speakers 
of webinars organiz ed in the context of the IWG made concrete suggestions, which are referred to 
as webinar speakers' proposals  below. To facilitate discussions, suggestions have been grouped 
by categories .  
Digitalization  
One IWG member suggested to explore how to support digital -related skills development, in 
particular for women -owned and rural -based MSMEs (Mexico's response to the Chair's request ). 
The G20 recommends that G20 members  adopt policies that help MSMEs  benefit from digital 
transformation and seize opportunities in new technologies for increased competitiveness through 
appropriate educational systems, adequate innovation policy support instruments, and innovation 
incentives (G20's proposal) . 
The G20 reco mmends that G20 members support national and international efforts to enhance 
the transparency of terms and conditions of cross -border sales on digital platforms (G20's 
proposal) . 
At the webinar on paperless trade organized o n 18 June 2020, speakers presented and 
promoted the adoption of the UNICTRAL Model Law on Electronic Transferable Records, which is INF/MSME/W/29  
 
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  meant to enable the legal recognition of electronic transferable documents  (webinar speakers' 
proposals, see also INF/MSME/R/15 ).  
Speakers at the 26 June MSME day event also stressed the need for further discussion on 
long-term support measures, such as assistance for MSMEs to adopt digital technologies (private 
sector's proposals) . 
Following a presen tation by Ms Jennifer Brant, Director of The Cyber Readiness Institute, on 
27 March 2019, during which she noted that around 60 per cent of MSMEs suffers from cyber -attacks 
due to lack of technology capacity and awareness and stressed the need for cyber re adiness 
technology solutions and relevant training programmes for MSMEs , a proposal was submitted to the 
Group to suggest that Members work with relevant organizations and national stakeholders to 
increase awareness of cybersecurity issues for MSMEs and promote and disseminate tools to help 
MSMEs improve their cyber -readiness ( see also  INF/MSME/W/20  and the webinar speaker' s 
presentation here). 
Customs duties in the context of e -commerce  
A suggestion was made in the context of the IWG to explor e existing de -minimis practices and 
their impacts on MSMEs (IWG Members' suggestions) . 
The Global Expression Association recently sent to the Group a proposal for  a simplified r evenue 
collection procedure for low -value shipments that would boost trade and benefit MSMEs (private 
sector's proposals, see also here). One IWG member suggested discussing  this proposal 
(Switzerland ). WTO Members "should endeavour to undertake a thorough analysis of the impact 
of existing de minimis thresholds on small firms, as well as work towards a global de minimis 
threshold of £1,000 (or equivalent in national currency). The de minimis threshold sh ould reach a 
balanced level, but at least prevent the improper splitting of shiploads" (private sector's 
proposals) . 
Access to information  
The "e -ping notification alert system should be extended" (private sector's proposals) . 
The transparency obligations of WTO Members should be strengthened, "...including through 
counter -proposals (i.e. the possibility for Members to make notifications on behalf of Members who 
do not comply with their notification obligations) " (private sector's proposals) . 
Speakers at th e 26 June 2020 MSME day event also highlighted the need for further discussion 
on long -term support measures including assistance for MSMEs to find new market channels to 
continue operation  (webinar speakers' proposals, see also INF/MSME/R/17 ). 
Access to finance and cross -border payment solutions  
WTO Members "should endeavour to design domestic banking regulations that incentivize 
lending to small busi nesses" (private sector's proposals) . 
WTO Members "should examine supporting alternative forms of finance such as lending 
platforms and crowd investment to plug trade finance gaps" (private sector's proposals) . 
At the webinar on cross -border payments organ ized o n 17 June 2020, speakers noted that 
only about one quarter of WTO Members have fully liberalized cross border payments and money 
transmission and stressed the need for further market access commitments in these sectors. Also, 
speakers mentioned that payment -tech start -ups are well placed to support MSMEs but struggle to 
cooperate with large banks to access global payment systems (such as SWIFT or SEPA), and 
therefore recommended WTO Members to improve the relationship between fintech startups and 
large banks (webinar speakers' proposals, see also INF/MSME/R/14 ).  INF/MSME/W/29  
 
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  Trade facilitation  
a) Single windows  
 
WTO Members "should commit to establishing or maintaining a single window enabling traders 
to submit documentation and/or data requirements for importation, exportation, or transit of goods 
through a single -entry point to the participating authorities or a gencies" (private sector's 
proposals) . 
WTO Members "should advance the interoperability of Electronic Single Window and should 
include engagement with MSMEs to better understand their drivers, needs and perspectives" 
(private sector's proposals) . 
b) Author ized economic operators  
 
WTO Members "should exchange best practices and past experiences, especially in terms of 
accommodating particular MSME needs into Authorized Economic Operator programs" (private 
sector's proposals) . 
"Harmonization of global standar ds for AEO programs and the adoption of Mutual Recognition 
Agreements on AEO concepts based on internationally recognized standards " should be promoted to 
reduce bureaucracy , especially for MSMEs (private sector's proposals) . 
WTO Members could "improve MSM E engagement with AEO schemes through capacity and 
capability development programmes for MSME traders as well as awareness raising campaigns on 
the opportunities and benefits AEO schemes offer for MSMEs. Reviewing AEO processes and whether 
MSMEs face barri ers from a cost and compliance perspective may also be necessary" (private 
sector's proposals) . 
c) Customs procedures  
 
"The obligation of local representation by customs agents remains an obstacle for MSMEs in 
many countries" (private sector's proposals) . 
WTO Members "should endeavour to examine how to simplify commodity codes and ensure 
that it keeps up with the latest te chnological developments" (private sector's proposals) . 
Regional Trade Agreements and Preferential treatment  
A suggestion was made in the context of the IWG to explor e MSME -related provisions in 
regional trade agreements and exchanging relevant experience s and best practices in that respect 
(IWG Members' suggestions) .1 
WTO Members "should endeavour to exchange best practice on small business chapters within 
the WTO 's committee on regional trade agreements, including examining how any future agreements 
impact the participation of MSMEs" (private sector's proposals) . 
WTO Members "should endeavour to ensure that any future free trade agreements contain a 
comprehensive small business chapter" (private sector's proposals) . 
WTO Members "should examine and work together to reduce the burdens imposed on small 
businesses by the rules of origin and associated requirements with a view to enhancing the use of 
preferential treatment opportunities by MSMEs. For instance, WTO Members could ratify and comply 
with the provisions of the revised Annex K of the Kyoto Convention of the World Customs 
Organization, which harmonizes and simplifies definitions, principles, and standards with regard to 
origin. Also, WTO Members could endeavour to  conduct awareness raising campaigns amongst small 
 
1 In 2019, the WTO Secretariat compiled all MSME -related provisions featured in Regional Trade 
Agreements . The database is a vailable on the WTO webpage . INF/MSME/W/29  
 
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  firms located in their countries of the benefits of any free trade agreement and provide sufficient 
support to encourage uptake" (private sector's proposals) . 
Covid -19 
One IWG member suggested to explore w hether there is potential for the IWG to address the 
pandemic and in particular MSMEs. How can the IWG include MSMEs ' interests in the economic 
recovery? How can the IWG ensure that MSMEs ' situations are better taken into account in potential 
future crises ? The mapping of MSMEs support measures provides an excellent basis to identify 
relevant trade -related practices. The IWG could consider actions to promote such good practices 
(Switzerland 's response to the Chair's request ).  
Export support  
WTO Members "s hould exchange best practice on export support mechanisms to help more 
small firms on their export journey" (private sector's proposals) . 
Capacity -building  and network opportunities  
One IWG member suggested to further explore how to support MSME skills dev elopment 
(Mexico's response to the Chair's request ). 
 The G20 recommends that G20 members  strengthen MSME -MNC linkages with a view to 
boosting MSMEs' capacity to connect and to upgrading MSMEs' practices and capabilities, and 
thereby to improve MSMEs' comp etitiveness. The G20 has identified a few concrete proposals to 
achieve these two objectives, namely, (a) strengthen business support organisations that host 
informal portals on competitiveness of local MSMEs and offer matchmaking services; and (b) step 
up efforts to regularly collect, firm -level data for better informed policy making and the facilitating 
of MNC -MSME matchmaking (G20's proposal) .  
WTO Members should support MSME engagement in capacity -building programs, such as 
through contributing to the d evelopment of executive leadership training for MSMEs tied to ISO/IEC 
17024 certification for trade professionals in the areas of trade policy, trade regulation & compliance 
and trade finance & supply chain finance (private sector's  suggestions) . 
WTO Membe rs should support MSME mentoring, networks, and access to affordable and 
trusted consulting services (private sector's  suggestions) . 
Intellectual property  
A suggestion was made in the context of the IWG to explor e how the effective use of 
intellectual pro perty rights could help MSMEs succeed in global trade (IWG Members' 
suggestions) . 
Investment  
A suggestion was made in the context of the IWG to explor e mechanisms and measures that 
contribute to facilitating MSMEs ' participation in international investment flows (IWG Members' 
suggestions) . 
Evidence -based policy making  
A suggestion was made in the context of the IWG to  exchang e good practices on the collection 
of trade statistics with firm -size characteristics and c onsider measures that could be taken to 
improve these data to better understand MSME's roles in global value chains and the impact of 
policies aimed at increasing MSME integration in international trade (IWG Members' 
suggestions) . 
The G20 recommends that G 20 members "step up efforts to regularly collect to the extent 
practicable, firm -level data for better informed policy making and the facilitation of MNC -MSME 
matchmaking" (G20's proposal) . INF/MSME/W/29  
 
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WTO Members "should adopt key performance indicators to guide them to improve 
MSME  participation in international trade" (private sector's proposals) . 
Other  
One IWG member suggested t hat IWG members voluntarily present their domestic 
MSME  policies and mea sures to support their MSMEs in international trade (South Korea, see also 
INF/MSME/W/26 ). 
One IWG  member suggested to emphasi ze work on micro enterpr ises (Mexico's response 
to the Chair's request ). 
One IWG member suggested to discuss how WTO Members can apply the provisions in the 
Anti-Dumping Agreement (Article 6.13) and the Agreement on Subsidies an d Countervailing Duties 
(Article 12.11) in a manner to reduce MSMEs burden and providing any practicable assistance 
(South Korea, see also INF/MSME/W /27). 
At a webinar organized in 2020, Ms. Boyd underscored the need to move enterprises from 
the informal economy to the formal economy by facilitating company registration and access to 
export licences, among other necessary documentation (webinar speaker s' proposals, see also 
INF/MSME/R/16 ). 
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