Digitalization takes centre stage in MSME Group discussions

Following a proposal by the United Kingdom, the Informal Working Group discussed the important role of trade digitalization and paperless trading in facilitating the participation of small businesses in global markets. The session featured presentations on the UK's Electronic Trade Documents Act as well as insights from the Commonwealth Legal Reform and Digitalisation Working Group.

A presentation of the UK-Southeast Asia Trade Digitalisation Pilot revealed how it uses the LogChain platform, a supply chain tool enabling real-time information sharing to improve connectivity, efficiency and security.

The discussion underscored how digitalization can mitigate risks, prevent fraud, reduce delays associated with paper-based trading, and cut through bureaucracy and legal uncertainties.

Pakistan presented its single window initiative, which allows stakeholders such as traders, customs officials and other agencies to communicate via digital platforms, with the aim of easing the participation of small businesses in trade transactions.

Georgia presented its development strategy for MSMEs focusing on digital literacy, regulatory issues and empowering women-led MSMEs amongst other topics.

The EU presented its "EU Traces Platform", an online platform for animal and plant health certification required for the importation of animals, animal products and plants. They also provided insights into a recent paper entitled "Promoting a "GVCs for LDCs" approach: the case of digital certification for organic products".

The paper highlights the significance of the European Union's organic products market for small exporters and farmers, particularly in developing economies. The study notes that least developed countries and MSMEs are particularly competitive in organic products and can derive significant benefits from digitalization.

Private sector engagement

As part of the Group’s ongoing efforts to enhance private sector engagement, the Working Group invited Ms. Gabriela Wurcel, Co-founder of Spicy Girls Kitchen, a women-led Swiss-based company producing speciality jams and spreads, to provide an insight into her business. Ms. Wurcel shared her experience of overcoming challenges such as high trade costs, logistic difficulties, non-regulatory barriers, access to finance, and market entry risks. Her insights highlighted the critical need for supportive structures to facilitate international market access for small businesses.

Other issues

Switzerland updated the Group on a report adopted by parties to the Government Procurement Agreement (GPA) on 9 October 2024. The report outlines best practices for enhancing transparency in procurement processes and reducing barriers to MSME participation, including the use of digitalization to improve market access.

Ambassador Matthew Wilson of Barbados, the Coordinator of the Working Group, informed participants that the databases on MSME references in Trade Policy Reviews and MSME provisions in Regional Trade Agreements have been updated with information up to mid-2024. He also provided information on the second Joint Solutions Lab recently co-organized by the MSMEs Group, the Informal Working Group on Trade and Gender and the World Intellectual Property Organization (WIPO). The Lab focussed on the importance of empowering women-led small businesses and exploring strategies to help women entrepreneurs leverage intellectual property as a business tool, he said.

As a follow-up to the thematic discussion on business support organizations from the last meeting in October, the China Council for the Promotion of International Trade shared its experience and the good practices followed by trade promotion organizations to facilitate better participation of MSMEs in international trade. More thematic sessions will be held in 2025 based on proposals from members.

The International Trade Centre (ITC) gave an overview of key activities undertaken at the COP29 climate change conference in Baku, Azerbaijan, including working with other international organizations and countries to highlight MSMES working in areas of climate change such as waste management and sustainability. ITC noted that it launched guidelines on including data on MSMES and trade in countries' nationally determined contributions (NDCs) to reduce greenhouse gas emissions.

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