WT/WGTDF/15  
 
16 November  2016 
(16-6312) Page: 1/1 
  
 
REPORT OF THE WORKIN G GROUP ON  TRADE, DEBT AND FINA NCE (2016)  
TO THE GENERAL COUNC IL 
 
1.1.  The Working Group held two meetings, on 31 May and 20 October 2016, under the 
Chairmanship of H.E. Atanas Paparizov (Bulgaria). At the meeting on 31 May 2016, the Working  
Group discussed the Director -General's proposals, laid out in his document "Trade Finance and 
SMEs", circulated in advance to Members, and presented orally by him at that meeting. The 
Director -General suggested that, on this important topic for many membe rs, a number of actions 
were within reach. The WTO could work with partners to: enhance existing trade finance 
facilitation programmes, with a view to reduce the gaps in trade finance; address knowledge gaps 
in local financial institutions by increasing ca pacity building; foster dialogue with regulators; and 
monitor trade finance gaps. The Working Group's input was very important to address each of 
these issues. Many Members requested the floor. In summarizing their interventions 
(WTO  document WT/WGTDF/M32) , the Chairman indicated that the Director -General's report had 
generally been considered by delegations as a necessary and positive step in resolving the 
problems of access to trade finance, notably for SMEs in developing countries. Still, this was only 
the beginning of an in -depth discussion, to be continued in future meetings of the Working Group, 
step-by-step. Several delegations expressed the wish to discuss new methods of financing trade, 
such as supply chain financing and digital trade, and ways in w hich Micro and Small and Medium 
sized-enterprises (MSMEs) could be covered by the discussions on trade finance and proposals. 
Discussions in the 2016 Public Forum were expected to help clarify some of these issues. While 
interventions had confirmed that tr ade finance was the main topic for the Working Group's current 
work, other topics have been raised by some delegations for possible future submissions.  
1.2.  At the meeting on 20 October 2016, the Working Group on Trade, Debt and Finance reverted 
to the topic on  trade finance and SMEs, notably in developing countries. The Secretariat had 
circulated a progress report, in WTO Document WT/WGTDF/W/82. The 2016 Asian Development 
Bank's global trade finance gap survey showed that global trade finance gaps had remained large 
(US$1.6 trillion in 2015 despite the fall in trade in US  dollar  value, against US$1.4 trillion in 2014). 
They affected disproportionally SMEs. Globally, 58% of trade finance requests by SMEs to banks 
had been rejected, against 10% for multinational c ompanies. Half of SMEs did not seek alternative 
funding, either because of the absence of it (in many developing countries), unawareness (70% of 
surveyed SMEs are unaware of digital finance) and other reasons. Trade finance gaps existed in all 
continents, including in developing Asia, Europe, Africa, Latin America, and the Pacific. The 
Secretariat also provided an update on the Director -General's meetings with heads of partner 
institutions, such as the International Trade Finance Corporation (Islamic Develo pment Bank 
Group), and the International Finance Corporation (IFC, part of the World Bank Group). The 
Director -General and the Chief Executive Officer aimed at organizing a high -level round table on 
the topic of trade finance and SMEs at the next spring me etings of the IMF and World Bank, based 
on good, solid analysis. The issue of withdrawal by large banks from many developing countries, 
through the termination of correspondent banking relationship had been discussed by the 
Director -General, with a focus o n its impact on the smaller traders. Based on this update, 
Members expressed their support to these advocacy efforts, bearing in mind the limitations of the 
WTO's mandate. They decided to continue to discuss the topic of trade finance and SMEs in the 
year 2017. No other topic had been raised by delegations for possible future submission.  
1.3.  On November 11 , 2016, the Working Group adopted its Annual Report (2016) to the General 
Council.  
__________