DDG Hill said: “Small businesses are not only essential domestically but are also at the heart of international trade. They make up more than a third of global imports and exports, illustrating their crucial role in fostering interconnected and dynamic global markets.”
The findings of three research papers were presented to members to broaden their understanding of MSME provisions in regional trade agreements. Two papers from the Philippines assessed the impact of free trade agreements on the manufacturing performance of small businesses in the Philippines and reviewed MSME provisions in the Asia-Pacific Economic Cooperation (APEC) economies. A paper from the United Nations Economic Commission for Africa (UNECA) analysed the provisions for small businesses in the African Continental Free Trade Area (AfCFTA). The papers were in response to a call for papers on “MSME Provisions in Regional Trade Agreements: Objectives and Observed Outcomes” issued by the Group in March 2023.
Chile presented the challenges and opportunities faced by small businesses and cooperatives in international trade. It shared its experiences assisting small businesses through technical assistance and collaborative work to help them better utilize small business-related provisions in trade agreements.
The European Union and Hong Kong, China provided updates on the implementation of the December 2020 MSME package of measures to help small businesses trade globally and on efforts to reduce the regulatory burden on small businesses. The EU outlined how it gives consideration to the needs of MSMEs when developing trade policies and highlighted the adoption of an SME relief package by the European Commission. Hong Kong, China said its recent Trade Policy Review looked into MSME inclusion, covering the government’s capacity-building initiatives, advisory services and funding schemes among other things utilised to strengthen small businesses’ participation in global trade.
As part of the group’s ongoing efforts to engage with the private sector and other stakeholders, members heard from the International Trade Centre (ITC), the Digital Cooperation Organization (DCO) and a business owner operating in Barbados. ITC gave an overview of its 2023 SME Competitiveness Outlook while the DCO introduced two initiatives, namely the Center of Excellence and STRIDE Association. These initiatives support entrepreneurship and advance digital inclusion of small businesses. Tamara Gibson, the Managing Director of Native Caribbean, a Barbados-based micro business specialising in the export of candles, shared her experience of reaching out to international markets. Featured as the first “MSME spotlight”, this will be a recurring theme in future meetings, providing members with a platform to hear directly from small businesses.
The United States briefed the group on a recent information session titled “View from the Digital Frontier: Delivering Improved Agricultural Outcomes through Digital Tools and Developed and Developing Country Co-operation”, which took place on 14 November. The panel, consisting of private sector representatives from Bangladesh, Norway and Tanzania, discussed the transformative impact of technology on their work in the agricultural sector.
In preparation for the 13th Ministerial Conference, taking place in February 2024, the Group reviewed the preparation of two compendia on MSME integration into Authorized Economic Operator (AEO) programmes, which allow economic operators complying with specific requirements to benefit from preferential measures in terms of customs clearance, and on access to finance by women-led MSMEs.
The next meeting of the Informal Working Group on MSMEs is scheduled for 19 March 2024.
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