Informal Working Group
Informal Working Group on Micro, Small and Medium-sized Enterprises (MSMEs)
Today, 95% of companies across the globe are MSMEs, accounting for 60% of the world's total employment. However, MSMEs face a number of obstacles when seeking to participate in international trade. To address these obstacles, 88 WTO members signed a statement at the WTO's 11th Ministerial Conference (MC11) in December 2017 declaring their intention to create an Informal Working Group on MSMEs to explore ways in which WTO members could better support MSMEs' participation in global trade. The Informal Working Group met for the first time in March 2018.
Participation in this Joint Initiative is open to all WTO members.
On this page:
News
Participation
As of March 2023, there were 98 WTO members participating in discussions of the Informal Working Group. These participants cover all regions of the world and all levels of development, accounting for around 90 per cent of world exports. The initiative is currently coordinated by Ambassador Matthew Wilson of Barbados. Previously, Ambassador Jose-Luis Cancela of Uruguay coordinated the Group from February 2018 through April 2023. Prior to that in the lead-up to MC11 in Buenos Aires through January 2018, discussions were led by Chile's Ambassador to the WTO, H.E. Mr Hector Casanueva.
The MSME package of recommendations and declarations, adopted in December 2020, was sponsored by 97 WTO members. As is the case for all the joint initiatives, participation in the MSME Informal Working Group is open to all WTO members.
Outcomes and current discussions
Since its establishment, the WTO MSME Group has focused on tangible outcomes and has produced a diverse range of deliverables including:
- The December 2020 package of six recommendations and declarations aimed at addressing challenges smaller businesses face when they trade internationally (INF/MSME/4/Rev.2).
The package includes:- A call for WTO members to provide information on MSME policies during their Trade Policy Reviews to enhance transparency and serve as a source of good practice.
- A call for WTO members to support the Global Trade Helpdesk, an online platform intended to bring trade and business information for companies, especially MSMEs, into a single area.
- Support for full implementation of the Trade Facilitation Agreement and a recommendation for WTO members to share good practices related to MSMEs.
- A call for promoting the inclusion of MSMEs in the development of trade regulations to minimize regulatory burden.
- Support for the implementation of the 2019 Decision on the WTO Integrated Database to permit access for MSMEs to information on tariffs and other import taxes.
- A call for exchanges of good practices to help identify measures that can facilitate MSMEs' access to finance and cross-border payments.
- Two separate databases concerning MSME-related references have also been released by the MSME Group:
- A database of MSME-related information in Regional Trade Agreements, launched in 2019.
- A database of MSME references in Trade Policy Reviews, launched in 2021.
- The Small Business Champions initiative in partnership with the International Chamber of Commerce (ICC) and the International Trade Centre (ITC) was launched in 2021 to help small businesses play a more active role in international trade. See here for information on past competitions and winners: Small Business Champions
- The Trade4MSMEs website with guides and resources for MSMEs, policymakers, and researchers on topics of international trade was first launched in 2021 and subsequently updated in 2023. The new website includes additional economy-level information, more than 600 linked resources and improved search functionality.
- The Trade Game was developed and launched in 2023 as an export readiness assessment tool. Designed with a "choose your own adventure" structure, players have the objective of successfully exporting a product on time and within budget.
For MC12, which took place in June 2022, a Coordinator's report (WT/MIN(22)/4) was issued by Ambassador Cancela recapping key activities undertaken and outcomes achieved by the MSME Group since its establishment at MC11. This document was largely based on a draft ministerial declaration issued on 28 September 2021 INF/MSME/W/36.
In preparation for MC13 in February 2024, Ambassador Wilson issued a draft Coordinator's report (INF/MSME/W/45) and the MSME Group agreed to pursue the following deliverables:
- A joint compendium with the Informal Working Group on Trade and Gender on Access to Finance for Women-led MSMEs (INF/MSME/W/46/Rev.1 & INF/TGE/W/7/Rev.1).
- A compendium of special provisions for MSMEs in Authorized Economic Operator (AEO) Programs (INF/MSME/W/47/Rev.1)
- Handbooks of the guides for small businesses and policymakers that were developed for the Trade4MSMEs website.
The MSME Group also continues to discuss a wide variety of topics including cross-border payments; digitalization, with a particular focus on cyber-readiness and paperless trade through recognition of e-documents and standards to digitalize trade; informality; intellectual property and innovation; low value shipments; MSME financing; sustainability; trade facilitation; and regional trade agreements.
In relation to the last topic of regional trade agreements (RTAs), the MSME Group issued a call for papers to review the impact of MSME-provisions in RTAs and received three submissions (INF/MSME/W/48).
Why an Informal Working Group for MSMEs?
Firms with fewer than 250 employees account for 78% of exporters in developed countries but only 34% of exports, according to the 2016 World Trade Report. In developing countries, MSMEs' exports amount to only 7.6% of total sales in the manufacturing sector, compared with 14.1% for large manufacturing enterprises.
MSMEs' participation in international trade has remained limited for a number of reasons, including lack of relevant skills, lack of knowledge about international markets, non-tariff barriers, cumbersome regulations and border procedures, and limited access to finance, in particular trade finance. The smaller the companies, the greater the challenges seem to be to participate in international trade.
The MSME Informal Working Group seeks to fully integrate MSMEs into global trade. In the Joint Statement issued in December 2017, the Group committed to identify solutions that would help companies, and particularly MSMEs, increase their participation in world trade, while taking into account the specific needs of developing countries.
Origins of the Informal Group
In 2015, the Philippines identified MSMEs as a dynamic sector and suggested that “the General Council shall consider the most appropriate arrangement to facilitate discussions” (JOB/GC/80).
In July 2016, Brunei Darussalam, Lao PDR, Malaysia, the Philippines, Singapore and Thailand reported on a workshop on “Enhancing the Participation of Micro, Small and Medium Enterprises (MSMEs)” aimed at enhancing awareness of MSMEs' role in international trade (JOB/GC/95).
At a General Council meeting in May 2017, a group of 47 members (counting EU member states individually) launched an Informal Dialogue on MSMEs chaired by Ambassador Casanueva of Chile.
In June 2017, Argentina, Brazil, Paraguay and Uruguay submitted a proposal for the development of a work programme covering areas such as information and transparency, trade facilitation, e-commerce and trade finance (JOB/GC/127).
Several workshops were organized in the run-up to the signing of the joint statement at MC11 to emphasize the importance of having a specific forum to discuss MSMEs at the WTO.
Key documents
Statements and Declarations
- INF/MSME/1 Statement by the Informal Working Group on MSMEs (25/03/2019)
- INF/MSME/4 Declaration on Micro, Small and Medium-sized Enterprises (MSMEs) (14/12/2020)
- INF/MSME/4/Rev.1 Declaration on Micro, Small and Medium-sized Enterprises (MSMEs) - Revision (18/03/2021)
Summaries of meetings
Annual reports
Meetings of the Informal Working Group
Forthcoming meetings
Date |
Topic |
Organizer |
Documents |
|---|---|---|---|
9 July 2024 |
Meeting |
Barbados (General Coordinator) |
|
14 October 2024 |
Meeting |
Barbados (General Coordinator) |
|
10 December 2024 |
Meeting |
Barbados (General Coordinator) |
Previous meetings
Share
Newsletters
Research notes
Recent Evolution of Developed-economy MSME Participation in International Trade
Small and Medium Manufacturing Enterprise Trade Participation in Developing Economies
Small Business and Climate Change
Problems viewing this page? If so, please contact [email protected] giving details of the operating system and web browser you are using.