WT/WGTDF/W/92/Rev.1  
 
17 October 2019  
(19-6801) Page: 1/2 
Working Group on Trade, Debt and Finance    
 
REPORT OF THE WORKIN G GROUP ON TRADE, DE BT AND FINANCE (2019 ) 
TO THE GENERAL COUNC IL 
DRAFT  
Revision  
1.1.  The Working Group held two meetings, on 21 June 2019 and 14 October 2019, under the 
Chairmanship of H.E. Mr. Refiloe Litjobo (Lesotho).  
1.2.  At the meeting on 21 June 2019, the Working Group heard and discussed recent progress of 
the Director -General and Secret ariat's efforts on improving the availability of trade finance in 
developing countries, notably SMEs. On financing, the WTO has continued to partner with 
multilateral development banks (MDBs) in mobilizing support at the international level. Since 2016, 
overall support to trade finance had increased by about 50% under these programmes. Last year, 
roughly 10,000 trade transactions from mostly SMEs had been supported by MDBs, 4,500 for the 
Asian Development Bank only. Such programmes had great learning -by-doing value, in allowing 
importers and exporters' banks to get acquainted – and hence to continue trading further without 
support from the multilateral institutions. The WTO Secretariat participated in on -site training 
activities organized by the European Ban k for Reconstruction and Development and by the African 
Import and Export Bank (a subsidiary of the African Development Bank). Bearing in mind the 
continued reduction of correspondent banking relationships around the world, the WTO Secretariat 
also partner ed with the International Finance Corporation (IFC) and the Financial Stability Board 
(FSB) in a series more targeted capacity -building events gathering bankers and regulators of trade 
finance in Africa. The dissemination of best practices regarding compli ance in the trade finance field 
was a priority. The IFC and WTO prepared a book to show case the best practices which emerged 
during the above -mentioned capacity building activities. The publication received contributions from 
the European Bank for Reconst ruction and Development, the Islamic Trade Finance Corporation, and 
the Asian Development Bank. It was launched on 3 July 2019 by the Director -General of the WTO 
and the Chief Executive Officer of the International Finance Corporation, along with senior of ficials 
of contributing organizations. The book is entitled: "Trade Finance and the Compliance Challenge: A 
Showcase of International Cooperation".  
1.3.  At the meeting on 14 October 2019, the Working Group on Trade, Debt and Finance reverted 
to the topic of tra de finance and SMEs, notably in developing countries. The Secretariat reported on 
the session co -hosted by the WTO Director -General and the Chief Executive Officer of the 
International Financial Corporation (IFC) at the Aid -for-Trade Global Review. The Sec retariat also 
mentioned the recent release by the Asian Development Bank of the Global Trade Finance Gap Study 
2019, which estimated the global trade finance gap at US$1.5 trillion in 2018. The study confirmed 
the persistence of large trade finance gaps no tably in developing countries, which reduced their 
trade opportunities. Globally, small and medium sized enterprises (SMEs) accounted for 30% of 
trade finance requests, but 50% of rejections. The Secretariat confirmed that it would continue its 
work based on the 2016 Trade Finance and SMEs proposals by the Director -General and comments 
and suggestions from Members. It also mentioned that it examined the possibility of integrating 
more systematically trade finance in diagnostic trade integration studies (DTI S) of the Enhanced 
Integrated Framework. This had been done successfully on a one -off basis in recent DTIS of 
Myanmar and Cambodia, but a more systematic approach was envisaged. The Secretariat committed 
to provide more information about this initiative on ce the draft project is ready. The Chairman 
proposed that the Working Group reverts to this issue and others related to trade finance at the next 
meeting of the Working Group on Trade, Debt and Finance.  WT/WGTDF/W/92/Rev.1  
 
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  1.4.  [On 2 November 2019, the Working Group adopted its An nual Report (2019) to the General 
Council].  
 
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