WT/GC/W/702  
 
24 September 2015  
(15-4923)  Page: 1/2  
General Council 
8-9 October 2015  Original: English  
 
FOSTERING THE PARTICIPATION OF MICRO, SMALL, AND MEDIUM ENTERPRISES 
(MSMES) IN REGIONAL AND GLOBAL MARKETS 
COMMUNICATION FROM MALAYSIA AND THE PHILIPPINES 
The following communication, dated 23 September 2015, is being circulated at the request of the 
Delegation of the Philippines. 
 
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In light of the 10th Ministerial Conference, the delegations of Malaysia and the Philippines have the 
pleasure of submitting a textual proposal on strengthening WTO’s work towards fostering the 
participation of micro, small and medium enterp rises (MSMEs) in regional and global markets. 
 
 
1  BACKGROUND 
1.1.  In JOB/GC/80 dated 20 July 2015, the Phili ppines has highlighted the importance of micro, 
small and medium enterprises (MSMEs) to the perfor mance of national economies, is critical for 
promoting inclusive economic growth, and has the potential to foster international trade. 
1.2.  Recent developments in international trade such as the emergence of global value chains and 
the "levelling effect" of new technologies provide opportunities for MSMEs to integrate into the global trading system.  However, the share of MSMEs, particularly from developing and least-
developed countries in global trade remains to be minimal. 
1.3.  A stocktake of initiatives on the sector indi cate that (1) a critical element in the sector is 
often not specifically recognized – that is micro enterprises; (2) there are cross-cutting issues that 
affect the integration of MSMEs in regional and global markets; (3) the discussions are currently 
sporadic and diffused; and (4) national and international policy makers are presented with an opportunity to pursue initiatives to help MSMEs internationalize and to ensure that insertion leads 
to improved economic performance.  
1.4.  MSME is a very dynamic sector, and fosterin g their participation needs to be based on a clear 
and coherent understanding of how the WTO as the main trade body could continue to further strengthen its resolve to integrate MSMEs consistent with its overall objective, as laid out in the 
preamble of the Marrakesh Agreement Establishi ng the World Trade Organization, to conduct 
relations in the field of trade and economic endeav or with a view to raising standards of living, 
ensuring full employment and a large and steadily growing volume of real income and effective 
demand, and expanding the production of and trade in goods and services.  
2  PROPOSAL 2.1.  The WTO Membership, at the 10
th Ministerial Conference in Nairobi, Kenya, could further 
strengthen its resolve to work towards the inclusio n of MSMEs in regional and global trade through WT/GC/W/702 
 
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  a Ministerial Statement/Declaration1 within the scope of MC10 outcomes relating to the regular 
work of the WTO, as follows: 
"We recognize the important role of Micro, Small and Medium Enterprises 
(MSMEs) in the performance of national economies of all WTO Members. 
Particularly for developing and least-developed countries, MSMEs are a critical 
component in advancing inclusive and sustainable economic growth, innovation, and prosperity. 
Recognizing the work undertaken by the WTO and other international 
organizations, the Council for Trade in Services, the Council for Trade in Goods, the TRIPS Council, the Committee on Trade and Development, and the Aid for Trade initiative, shall continue its discussion and examination of aspects of MSMEs 
relevant to their respective areas of competence.  Existing linkages with the 
initiatives of other international organizations such as ITC, UNCTAD, and the World Bank would likewise be strengthened. 
Furthermore, in recognition of the cross-cutting issues that affect the integration 
of MSMEs in global trade and the need for a better understanding and coherence 
in discussions on MSMEs, the WTO Secretariat shall prepare a study to take stock 
of WTO discussions, as well as initiatives by other international organizations on 
MSMEs. The General Council shall consider the most appropriate institutional arrangement to facilitate discussions for which information and experiences relating to opportunities and challenges of MSMEs are discussed in a horizontal 
manner. 
The General Council shall provide a report at the 11
th Ministerial Conference." 
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1 The format of the statement would be modified de pending on the agreed format for the MC10 outcome 
documents.