Working group on small business considers future topics for discussion

The Coordinator of the Group, Ambassador Matthew Wilson (Barbados), highlighted the results of the Small Business Champions initiative, which were announced during last week's Aid for Trade Global Review.

One of the winners is the Latin American and Caribbean Network of Fairtrade Small Producers and Workers of El Salvador (CLAC), a network representing 1,000 Fairtrade-certified organizations in 24 economies in Latin America and the Caribbean. The winning project will survey existing products in Latin America that can benefit indigenous producers, provide training and technical advice, and help indigenous producers identify international markets.

The second winner is O'KANATA of Canada, an organization focussed on the empowerment of indigenous youth. Its winning project is for an e-commerce platform that offers a marketplace for indigenous crafts as well as capacity building for entrepreneurs.

The Group considered proposals put forward by members on the future workplan of the Group. The proposals address the issue of bridging the gap between trade policy and small businesses, good regulatory practices, supporting women-led MSMEs, low-value shipments, the informal sector, digital trade, and MSME provisions in regional trade agreements. Dedicated discussions will be organized in the coming months to explore these issues.

The International Trade Centre (ITC) updated members on the latest improvements to the Global Trade Helpdesk, a one-stop shop for information on trade opportunities. The ITC reported that the platform is now available in Chinese.

Members shared updates on their implementation of the December 2020 MSME package of recommendations aimed at helping small businesses trade globally. Canada noted that its most recent Trade Policy Review (TPR) included information on programmes that support MSMEs in accessing intellectual property services. The TPR also covers provisions in their regional trade agreements and investment agreements which aim to address the specific needs of MSMEs and the challenges they may face.

China also noted that its upcoming TPR in July includes measures taken by China to support MSMEs and enhance development through various funds, with the objective of optimizing the business environment and facilitating financing.

As part of the Group's ongoing efforts to engage with the private sector and other stakeholders, it heard a briefing by Ms Pamela Ugaz of United Nations Trade and Development on the 2024 Global Supply Chain Forum held in Barbados from 21 to 24 May. Ms Ugaz noted that the Forum discussed the impact of climate change, conflicts and costs of capital on MSMEs. The Forum also highlighted the importance of digitalization and improving the digital skills of MSMEs in addition to reducing the cost of and access to finance. The Forum highlighted that capacity building and resources are needed to help economies trade in a way that minimizes the negative impact of trade on climate.

Ms Usha Subba, an entrepreneur from Nepal, shared her experiences in trading tea and in exporting to European markets. She emphasized that good infrastructure, improving product quality and meeting technical standards have helped her reach new markets. Ms Subba outlined some of the obstacles that prevent many small businesses from moving their activity online, including regulatory requirements and digital skills. Ms Subba said she has received support from the Enhanced Integrated Framework (EIF) to help her access international markets.

Building on the Compendium of Authorized Economic Operator (AEO) Programs with provisions for MSMEs that the Group published before the 13th Ministerial Conference (MC13), Ms Lazzat Daniyarova of the World Customs Organization (WCO) presented the results of a recent survey of WCO members' AEO Programs dedicated to MSMEs.

In addition, the Standards and Trade Development Facility (STDF) gave a presentation on their activities that help MSMEs meet international food safety and plant health standards for trading across Africa, Asia and the Pacific, Latin America and the Caribbean.