INF/MSME/R/6  
 
25 March 2019  
(19-1828) Page: 1/2 
 Original: English  
 
  
INFORMAL WORKING GRO UP ON MSME s 
FIFTH OPEN -ENDED THEMATIC SESSION* 
THE INTERNET AS A TOO L FOR MSME S: TAKEAWAYS AND NEXT  STEPS  
The following communication, dated 12 November  2018, is being  circulated at the request of the 
delegation of  the Kingdom of Bahrain , co-coordinator of the Informal Working Group on MSMEs  and 
organizer of this session , and the delegation of Uruguay, general coordinator of the Informal Working 
Group on MSMEs.  
  
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Reflecting on the Informal Group of MSMEs thematic session held at the WTO on 31 October  2018, 
we, the co -coordinator and general coordinator of the Informal Working Group on MSMEs, took note 
of the following key messages from speakers and participants:  
 
1  REMARKS BY SPEAKERS  
1.1.  H.E. Dr. Yusuf Bucheeri , Ambassa dor of the Kingdom of Bahrain , welcomed the attendees in 
his role as co-coordinator of the  informal working group on MSMEs and chair of this  thematic session. 
Ambassador  Bucheeri highlighted the internet's ability to reduce distances and provide instant access 
to global markets, posing the question to the group of whether international collaboration could 
assist MSMEs a chieve their digital potential.  
1.2.  Ms. Emmanuelle Ganne from the Secretariat  presented key findings from the 2018 World Trade 
Report regardin g the internet -of-things (IoT), artificial intelligence (AI), 3D printing and blockchain 
including  their implications for international MSME trade. Most importantly, the study found that 
digital technology can lower trade costs, which is especially benefic ial for MSMEs and firms from 
developing countries.  
1.3.  Ms. Cécile Barayre from the Information and Communication Technology Policy Section of 
UNCTAD, presented the findings from UNCTAD's  Rapid eTrade Readiness Assessment of Least 
developed countries (eT Ready) . UNCTAD has conducted on -the-ground research of MSMEs in LDCs 
to identify opportunities and barriers for e -commerce and digital trade. Ms. Barayre underscored 
that the first challenge is to get people online, however once people have access to the interne t 
there is often a slow adoption of e -commerce due to distrust, fear of hacking and a general lack of 
understanding. Ms. Barayre stressed the need to have communication between government and 
private sector entities to understand where blockages exist and how policy could aid internet 
transactions.  
1.4.  Ms. Kimberley Botwright, Lead of the International Trade and Investment Office at the World 
Economic Forum (WEF ), discussed work the WEF is currently engaged in to outline five pillars needed 
to facilitate global  e-commerce. Importantly, international data transfers are a crosscutting issue 
and data flows must remain open for e -commerce to take place. Ms. Botwright noted that customs 
and logistics place relatively large cost burdens on MSMEs, yet only 34 per cent of countries have 
frameworks to implement electronic customs that could significantly facilitate international trade by 
MSMEs. Different consumer protection laws by country also mean that customers are disinclined to 
                                                
* This document was originally circulated as JOB/GC/206 dated 20 November 2018 . 
 INF/MSME/R/6  
 
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  purchase from a foreign seller. Payment s are also a key issue when it comes to international 
transactions and can be prohibitively expensive for a consumer to make an overseas purchase online.  
2  DISCUSSION  
2.1.  Members stressed the need for a broad exchange of experience and knowledge with regards 
to making the internet accessible to their populations. The diversity of levels of development and 
base levels of digital literacy were noted, all of which contribute to very different needs and 
challenges.  However, given the broad range of regions covered by  the Friends of MSMEs a 
compilation of lessons learned could be useful.  
2.2.  Several Members highlighted the digital divide as a key challenge for advancing the internet as 
a tool for MSMEs. Besides the digital divide, language barriers regarding online informa tion resources 
were also underscored, which illustrates a second hurdle for many Members' populations.  
2.3.  Afghanistan highlighted six e -commerce challenges that affect LDCs in particular: 1) lack of a 
general framework to transform government processes, such as customs forms, to digital 
documents; 2) limited internet access in rural areas and developing countries; 3) lack of 
understanding and trust by the population of the potential benefits of e -commerce; 4) challenges to 
acquire financing by MSMEs for intern ational e -commerce, especia lly regarding trade finance; 5)  lack 
of information about international markets and foreign demand; 6) general security concerns for 
MSMEs and LDCs that have limited experience and are more vulnerable to fraud, forgery, and theft . 
These challenges, although felt more acutely in LDCs, are issues that the MSME working group could 
seek to address.  
3  NEXT STEPS  
3.1.  Members were invited to submit inputs presenting their n ational policies and programmes to 
help MSMEs go digital . 
3.2.  The work being done by UNCTAD concerning the etrade readiness asses sment will be followed 
closely.  
3.3.  Members were encouraged  to consider ways to improve the data and information collected on 
MSMEs in global trade . 
3.4.  Members were also invited  to put forward con crete proposals  with regards to the internet as a 
tool for MSMEs so that a clear work programme  can be developed . 
 
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