INF/MSME/W/16  
 
8 November 2019  
(19-7599 ) Page: 1/2 
  Original: English  
 
 
INFORMAL WORKING GRO UP ON MSMES  
BACKGROUND NOTE ON P RIVATE SECTOR PARTIC IPATION AT THE WCO A ND OECD  
The following is a note compiled at the request of the MSME Coordinator to provide more information 
on ways the private sector is included in discussions at other International Organizations, namely 
the World Customs Organization (WCO) and the Organization for Economic Cooperation and 
Development (OECD). This note was prepared by the Economic Research and Statistics Division of 
the WTO Secretari at and does not represent the official position of the WTO, nor of the WTO 
Secretariat.  
 
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1  CONCEPT  
1.1.  Interactions between international organizations and the private sector are an important way 
to understand whether policy priorities have been correctly identified, if policy measures are effective 
and what changes could be envisioned for the future. As the MSME Informal Working Group considers 
what might be the most suitable way to include MSMEs more directly in negotiations , two examples 
of business participation, one at the WCO and the other at the OECD, can serve to illustrate potential 
options.  
1.1  WCO  
1.2.  The WCO follows two complementary approaches to incorporating the private sector into their 
organization, detailed below. Alt hough decisions are only taken by Members, the WCO has opened 
some of their meetings to the private sector as observers with the right to intervene and take the 
floor.  
1.3.  The first method the WCO developed is the Private Sector Consultative Group (PSCG). 
Established in 2005, this group, representing every region of the world, is currently composed of 
26 business associations and companies and participation cannot fall below 21 members.1 The PSCG 
is intended to advise all levels of the WCO, from Members to the Secretary General. PSCG members’ 
terms last three years and they may not serve more than two consecutive terms. However, former 
PSCG members can be re -appointed to the PSCG after a three -year hiatus. Every year in January, 
the WCO Secretary General sends a  letter to the Vice -Chairs of the WCO Regions, the Chair of the 
Council and the Chair of the PSCG informing them of openings in the PSCG membership (one third 
will become available each year). Entities wishing to become members of the PSCG have to submit 
a written application to the WCO Secretary General who decides on nominations in consultation with 
the WCO Vice Chairs.  
1.4.  PSCG's members are invited to regular WCO meetings such as the Permanent Technical 
Committee and ecommerce meetings. However, certain mee tings, such as the December Policy 
Commission, are limited to WCO Members only. For more information, see: 
http://www.wcoomd.org/en/topics/key -issues/private -sector -consultative -group.aspx . 
                                                 
1 A full list of currrent participants is available here: http://www.wcoomd.org/en/topics/key -
issues/private -sector -consultative -group/membership.aspx . INF/MSME/W/16  
 
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  1.5.  The second method the WCO uses to incorporate private sector participation is through signed 
MoUs with a number of business associations (IATA, ICC, etc). The WCO usually does not engage 
with private companies directly, but rather business associations. These organisations are invited to 
participate in some meetings only and sometimes only specific agenda items of particular meetings. 
Each meeting has specific terms of reference which determine the sessions that these organiz ations 
can attend and there is a separate agenda for private sector companies.  
1.2  OECD  
1.6.  The OECD also pursues two official tracks to private sector participation in their negotiations. 
The first way that the private sector can participate at the OECD is throug h the Business Industry 
Advisory Committee (BIAC), re -branded as "Business at OECD". BIAC is an official OECD body and 
is invited to all meetings, except those reserved for Members when they discuss sensitive issues. 
BIAC has its own flag and can actively participate during meetings. Besides this participation, BIAC 
also submits twice yearly position papers to the OECD to highlight issues of importance to the group 
and meets with the OECD DG to express its views on business priorities directly. Individual 
businesses or associations interested in specific policy groups may attend OECD meetings as 
representatives of BIAC. More information regarding Business at OECD is available here: 
http://biac.org/quick -facts/ . 
1.7.  A separate track was detailed in the 2005 OECD Global Relation Strategy. This strategy is 
mostly used to create a standing invitation for certain non -OECD member countries and international 
organizations so that prior notification to OECD Members for partici pation in official OECD meetings 
is not required. However, the various OECD Working Parties have also used this to tailor their 
individual standing invitation lists. For example, the Working Party on SMEs and Entrepreneurship 
has four standing invitations:  UNECE, SME United, European Association Guarantee Institutions, and 
the International Council for Small Business (ICSB). These invitees sit under their own flags, are 
invited to all SME and Entrepreneurship meetings and can participate as members. The lis t is based 
on interest by the individual organizations and can be modified based on Members' proposals, 
although the OECD asks a lot of information of the applicant (including funding source, method of 
governance, etc.).  
2  CONCLUSION  
2.1.  In recognition of the im portance of private sector opinion and inputs to their policy 
recommendations and outputs, the WCO and OECD have developed methods to bring business into 
their meetings on a regular basis. Both have two separate means to incorporate businesses and 
associat ions into their meetings, the first is through an official representative body established at 
the organizations, the PSCG and BIAC respectively. The second is on an individual basis with certain 
business groups and associations to fill in various gaps.  
 
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