On 11 December 2020 the WTO’s Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs) adopted a package of six recommendations and declarations concerning problems encountered by MSMEs when engaging in international trade. The package recognises that the difficulties for MSMEs when taking part in international trade have been made worse by the Covid-19 pandemic.
Included in the package are a set of voluntary, non-binding recommendations in a number of areas including transparency and information sharing; trade facilitation; access to finance and cross-border payments; access to market information; and inclusion of MSMEs in regulatory developments.
WTO Trade Policy Reviews
The package recommends that WTO member countries should voluntarily provide information on policies concerning MSMEs when they are compiling information for WTO Trade Policy Reviews. Details such as the number of MSMEs operating in the local economy and their share in international trade would increase transparency.
Access to information
WTO members are encouraged to support the Global Trade Helpdesk, which is a tool set up by the International Trade Centre, UNCTAD and the WTO to facilitate access by MSMEs to market intelligence on tariffs and regulations, and other business-related data.
Trade Facilitation
MSMEs experience difficulty in complying with customs procedures. These difficulties would be eased by full implementation of the WTO’s Trade Facilitation Agreement, with identification of good practices that can help MSMEs. Countries could consider adopting digital customs procedures that will help to ease the difficulties experienced by MSMEs.
MSME involvement in development of regulations
The involvement of MSMEs in the discussions around new regulatory developments could help to avoid unintended consequences that may otherwise result for MSME trade. The package therefore recommends that WTO member countries should analyse the potential impacts on smaller businesses of new trade regulations and ensure these businesses are consulted.
WTO Integrated Database
The Integrated Database (IDB) is the official WTO official source of tariff and trade-related information. If the IDB is kept up to date by the WTO member countries, this would help MSMEs to gain access to comprehensive information on tariffs and other market access data. The 2019 recommendation on the IDB supports the voluntary submission of additional information and transmission of tariff or import data to the IDB by WTO members.
Access to finance and cross-border payments
When engaging in international trade MSMEs have difficulties accessing finance and making cross-border payments. The WTO is therefore asking its member countries to share best practices so realistic measures can be identified to help MSMEs in this area.
