 RESTRICTED  
  
WT/WGTDF/M/41  
 
27 May 2021  
(21-4423) Page: 1/11 
Working Group on Trade, Debt and Finance   
 
  
REPORT OF THE MEETING OF 17 MAY 2021  
1.1.  The forty -third meeting of the Working Group on Trade, Debt and Finance (WGTDF) was held 
on 17  May 2021 and was chaired by H.E. Ambassador Cheryl Spencer (Jamaica). The Chair 
welcomed the Director -General, whom she had invited to address the Working Group. While her 
presence was not an unusual step for a Director -General – her predecessor having addressed the 
Working Group twice in recent years  – she was grateful that the Director -General had accepted to 
address the WGTDF early in her mandate, thereby marking her interest in its work.  
1.2.  The Director -General  highlighted the importance of the Working Group's role in  tackling issues 
at the nexus of trade, debt and finance, such as trade finance. She said that when she was a 
candidate for the position of Director -General, she had mention ed the issue of trade finance in the 
discussion s that were held at the time with He ads of Delegations. This was because this topic was 
an integral part of what should be done in the Organization. The Organization had many priorities, 
some mentioned more than others, but this was one topic that she hoped that the Organization 
could turn i ts attention to.  
1.3.  Trade finance currently mirror s the wider great divergence seen in the global economy and 
vaccine access. Major trading nations have been supported by government trade finance programs 
(loans guarantees, payment deferral schemes , etc.) and  easy monetary policy. Low -to-middle 
income countries, meanwhile, ha ve seen declining private trade credit lines availability, as a knock -
on effect of deteriorating sovereign and counterparty ratings. These countries have few government 
schemes to help imp orters and exporters; many lack export credit agencies, or adequate fiscal 
resources. Multilateral development banks have intervened, with trade finance programs providing 
a record $35 billion in one year, allowing countries to import and export essential goods and services, 
including medical supplies and equipment. However, this was only a dent in the $1.5 trillion trade 
finance gap. Current demand for multilateral institutions' trade finance programs is up 100% 
year-on-year. It could not be satisfied. Wor king capital costs ha ve increased 30% over the past year 
on average, with peaks of 60% in developing countries. The rejection rate for letters of credit in 
Africa was up by 30% according to a joint 2021 survey by the African Development Bank and the 
Afrexi mbank. In this context, she congratulated Côte d'Ivoire for bringing forward a proposal on this 
issue, and she hoped that the membership would have a healthy debate around the issues put 
forward.  
1.4.  The Director -General recalled that the World Trade Organizat ion (WTO) had taken effective 
action on trade finance in the past, as in 2008 -2009. Trade finance was a trade topic as much as a 
financial one. There may be opinions that consider that trade finance is all about finance and that 
the WTO  is not a financial institution, but the Director -General  did not understand how one could 
discuss trade without talking about the finance that underpinned it. For her, this was also the 
business of the WTO. Importers and exporters apply for trade loans and letters of credit and have 
to provide collateral ; pay interest rates and fees; and bear the burden of rejected applications. The 
rejection rate for micro, small and medium size enterprises (MSMEs) was 45% internationally, 
leading in half of these cases to trade transactions  being abandoned. Insufficient trade finance was 
a trade cost like others addressed in the WTO. Competitive traders are often those having easier 
and cheaper access to trade finance. Because this problem was not currently as widespread among 
all members, i t was perhaps perceived as a problem of developing countries, affecting the least -
developed countries the most . Perhaps this is why this problem did not get as much play as it should. 
However, she was convinced that there was no way of integrating developi ng members more 
effectively into the trading system without  paying more  attention to this issue in the WTO.  
1.5.  The WTO had in the past played an instrumental convening and advocacy role in mobilizing for 
trade finance, with benefits to all members, large and small. When the 2008 -2009 global credit WT/WGTDF/M/41  
 
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  crunch affected trade finance availability, the WTO helped develop a trade finance safety net with 
multilateral development banks. The International Finance Corporation's Trade Liquidity Pool at the 
time had been  launched at the WTO by Ambassador Zoellick and former Director -General Lamy. The 
WTO also took part in a dialogue with regulators to ensure that trade finance's low risk w as reflected. 
It has also been helping with technical assistance, country diagnostic s and analysis. She reflected 
on a call she just had with the head of the Islamic Development Bank, which had been part of this 
mobilization during the global financial crisis. The Islamic Development Bank was proposing to 
cooperate with the WTO during the  pandemic, which had affected trade finance for its members. In 
this context, she had proposed that country -specific trade finance gaps be estimated. It was useful 
to have a global trade finance gap number (which stood at $1.5 trillion) as it came up from the Asian 
Development Bank survey, developed at the instigation of an expert group convened by the WTO. 
However, this was not good enough. Efforts should be made to have a better trade finance database 
which would tell country -by-country what the gaps are,  to be able to target members and help them.  
1.6.  Therefore, the Director -General was convinced that the WTO could and should act again in the 
current circumstances. It should convene relevant organizations to catalyse trade finance support 
for those needing it  most. In this context, th e Working Group on Trade, Debt and Finance could 
guide the process and possibly contribute to outcomes by developing a work program for members 
in the run -up to the 12th Ministerial Conference (MC12). She was willing to help in an yway the 
Working Group saw fit. She could interact with members and industry leaders. She could also use 
her convening powers to cooperate with international agencies. She was hoping to see progress in 
this area. She repeated in conclusion that this was ve ry important work for the WTO and she wished 
to help anyway she could.  
1.7.  The Director -General  took questions and comments from members. The Representative of 
Mauritius  thanked the Director -General on behalf of the African Group for having underlined the link  
between trade and finance. Both the African, and the Asia, Caribbean, Pacific (ACP) groups asked 
for a concrete outcome at MC12 on MSMEs in particular, notably on the facilitation of cross -border 
payments. He asked whether the Director -General had ideas a bout how to address the matter. The 
Representative of the United States  was pleased to engage in the Working Group when it was based 
on members ' interest s and proposals. At the same time, it cautioned against efforts within the 
Working Group as it pretende d to engage in discussions and initiatives that would not be at the 
direct behest of members. The key reason for this was to ensure that the WTO worked within its 
mandate, and not inadvertently overlap with efforts of trade finance agencies or internationa l 
organizations. He was looking forward to work ing with other members on member -driven initiatives 
and would be providing comments on  the Côte d'Ivoire proposal later in the discussion.  
1.8.  The representative of Côte d'Ivoire  thanked the Director -General for h er statement regarding 
trade finance. Côte d'Ivoire had carefully developed its position on this issue since 2018 and was 
pleased to see that this matter would be dealt with seriously. Côte d'Ivoire would continue to deepen 
its work and its efforts in this  area. The representative of Mongolia , on behalf of the group of Least 
Developed Countries (LDC), appreciated the importance given by the Director -General to the topic 
of trade finance, which he shared. The LDC group would engage seriously in the matter. T he 
Director -General  thanked members for their comments. She was glad that her attention had been 
drawn on the comment by the ACP, African and LDC groups, and their quest to move forward in this 
area. She agreed that if one looked at data for MSMEs on cross -border payments, there might be 
another issue to address; this might be an area where the group could be looking for experts for 
advice, should the group wish to deepen the matter. She shared the comment by the US  delegation. 
There was no point in engagin g in an area if members were not the ones pushing forward; one 
should not push an area for its own sake, but if members thought that this was important, this was 
something that the institution needed to look at. She very much supported a member -driven 
process. She had said that personally she had some knowledge in this area, that she put at the 
disposal of members. So, as the Director -General, she and the secretariat would be here to support 
members, but it would be up to members to step forward. She unders tood that this had been the 
case in the past, and according to the information she had about what happened during the 
pandemic, she thought that trade finance was again an issue. She had noted Côte d'Ivoire and 
Mongolia's comments, and she looked forward t o seeing how discussions would progress. She 
delivered a message of encouragement to the Working Group.  WT/WGTDF/M/41  
 
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  1  AGENDA ITEM 2.A: SUBMISSION BY CÔTE D'IVOIRE, IN DOCUMENT WT/WGTDF/W/98  
1.9.  The Chair turned to the meeting's agenda. The meeting had been convened under th e cover of 
WTO/AIR/WGTDF/14 /Rev.1. Under point 2.A of the agenda, it was suggested that the written 
submission by Côte d'Ivoire (WTO Document WT/WGTDF/W/98) be discussed. Point 2.B of the 
agenda (reporting to the General Council) would be discussed on the basis of the outcome of the 
discussion on point 2.A, if there had been enough progress in the substantive discussion. The agenda 
was agreed . 
1.10.   In her introduction to point 2.A of the agenda, the Chair said that the Delegation of 
Côte d'Ivoire had requested t hat its communication, called "Question regarding access to trade 
finance in the context of Covid -19" be discussed at the meeting. It was first circulated on 
17 December 2020. The previous Chair, Ambassador Rashidi Said of Malaysia, had provided 
information about the consultations that he held with a group of members regarding this 
communication. The Chair wished to make a couple of general remarks. First, it was not surpr ising 
that a developing member was making a proposal regarding the improvement of access to trade 
finance in the context of COVID -19, as many developing countries had been struggling with 
deteriorating sovereign ratings on borrowing, which had direct effec ts on the pricing and availability 
of trade finance provided by private sector financial institutions locally. This, in turn, affected their 
ability to import essential goods and to benefit from a recovery of their exports. Hence, it would be 
a welcome ges ture of solidarity to examine what the WTO could  do, in the way that the WTO had 
helped mobilize resources, as the Director -General had said, during the global financial crisis a 
decade ago. Therefore, the Chair welcome d the submission from Côte d'Ivoire a s being in line with 
this long stream of work, building on the expertise built over the years by the working group.  
1.11.   The representative of Côte d 'Ivoire  thanked the new Chair and her predecessor for the fruitful 
exchange regarding  the project initiated by C ôte d'Ivoire. He thanked the Director -General for her 
participation in the meeting and for her efforts for an equitable distribution of vaccines since she 
took office. At the request of Côte d'Ivoire, WTO Document WT/WGTDF/W/98 had been distributed 
to memb ers. The concerns tackled in that document were at the very heart of the relationship 
between trade, debt and finance, concerning which the WTO had considerable experience in analysis 
and action.  
1.12.   In order to reduce the number of questions and requests for explanations, Côte d'Ivoire 
wished to make an oral presentation explaining its submission (WT/WGTDF/W/98). In doing so, he 
said that paragraphs 1.1. to 1.6 of the submission raised and underlined the difficulties mainly 
related to access to tr ade finance for developing countries and LDCs; as solutions, paragraphs 1.7 
to 1.10 of its submission suggested what could be done among WTO members ; by the secretariat 
at the request of members ; and by way of cooperation between the WTO and other relevant  
organizations or institutions.  
1.13.   Regarding the first part of its submission (the findings and justifications underlying the need 
for consideration of its submission) Côte d'Ivoire made the point that most developing countries and 
LDCs, including itself, con tinued to face substantial difficulties in accessing trade finance. These 
difficulties represented major obstacles preventing MSMEs from seizing the trade opportunities 
offered by the WTO Agreements. These difficulties were real and had been confirmed by s everal 
recent studies, surveys and reports, in particular that of the African Development Bank and the 
Afreximbank of September 2020, which explained the current state of trade finance in Africa over 
the past seven and eight years, with the study being upd ated every two years. This study dealt with 
issues relating on the one hand to the supply of trade finance, namely the role and involvement of 
local and international banks, banking products distributed in Africa, and financing needs. On the 
other hand, th e study examined demand -related issues, namely obstacles to meeting the demands 
of companies, especially SMEs, and international factors (regulations, foreign currency availability). 
It also highlighted recent trends, including a deterioration in the invol vement of banks  in trade 
finance since the beginning of the COVID -19 pandemic, an increasing rate of rejection of MSMEs 
applications despite low default rates of trade loans. While about 30% of trade finance went to 
MSMEs, the bank rejection rates of SME a pplications was 47%, higher than all other categories of 
businesses. The rejection rate on letters of credit had increased by 30% since the onset of the 
pandemic. There were several reasons for such an increase, including a growing number of 
regulatory req uirements, a reason why the delegation of Côte d'Ivoire placed such an emphasis on 
the development of the Legal Entity Identifier (LEI). The reduction of credit and confirmation lines WT/WGTDF/M/41  
 
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  from international banks since the beginning of the pandemic should be n oted, as it had a selectivity 
effect locally on the smaller companies.  
1.14.   These difficulties were confirmed by the Global Trade Review, which published the outcome 
of a global survey on SME financing, carried out by "collaborative cash -flow optimization (C2FO )", 
one of the largest digital fintech platform s for value chains' financing. The survey was undertaken in 
December 2020 and January 2021. More than 6,700 SMEs from Europe, North America, and the 
Asia-Pacific region had responded to questions about cash -flow, access to working capital, and trade 
finance. The survey revealed a "sharp rise " in the cost of working capital as well as growing concerns 
about late or protracted payments from MSME clients. Working capital costs had increased on 
average by 30% to 35 % for SME in developed countries in one year, but the largest increase had 
been observed in developing countries, such as Turkey (+69%) and India (+56%). Categories of 
inter-company finance in effect in international trade, such as factoring, supply chain finance, and 
bridge -loans were concerned by such an increase in cost. It had to be noted that many countries 
still did not have any access to supply chain finance, especially international factoring and reverse 
factoring. Finally, payment delays, especiall y affecting MSMEs, had considerably increased, which 
were a mortal danger for them.  
1.15.   Finally, a study by the International Finance Corporation (the private arm of the World Bank 
Group) on Trade finance and COVID -19, published in March 2021, had confirmed th e difficulties 
encountered by its 163 client banks, by sector and by region. The study confirmed the elements 
already mentioned, namely that 40% of banks had experienced a period of "stress" in terms of the 
reduction of correspondent banking confirmation l ines and an increase in financing cost. Ninety 
per cent of the banks surveyed requested continued support by international financial institutions 
by way of trade finance guarantees. All these reports could be communicated upon request.  
1.16.   Hence, the difficult ies and shortages mentioned in Document WT/WGTDF/W/98 were not 
specific to Africa, although it seemed that Africa was the most affected continent. It was obvious 
that COVID -19 had exacerbated more or less structural problems of access to trade finance, whi ch 
were at the origin of the high financing needs in many developing countries. It was recalled that 
before the pandemic, unmet trade finance needs were estimated to be $1.5 trillion, of which about 
$80 billion were estimated to be in Africa.  
1.17.   In the second  part of his presentation, the representative of Côte d'Ivoire wished to discuss 
and address solutions, notably through the establishment of a road map or a work program in the 
Working Group. Document WT/WGTDF/W/98 had suggested in its paragraphs 1.7 to 1. 10 a series 
of actions at the level of members ; at the level of the secretariat working with members ; and 
between the WTO and other international institutions. In order to anticipate questions of some 
members and with the view to moving forward, the repres entative suggested that it was desirable 
to establish a road map containing a very concrete work program on the basis of the following 
elements:  
1.18.   Regarding collaboration between members, Côte d'Ivoire suggested what could be done 
during the COVID -19 pandemi c by way of sharing and exchanging information and good practices. 
Several areas for such an exchange were specified, for example: how have members mobilized 
import and export finance for their companies? How have programs aimed at the protection of cash 
flows in small businesses been put in place? When there are payment moratorium or bank 
guarantees, who were the players, who took the risk and covered the cost associated with these 
initiatives? What lessons could be drawn for Côte d'Ivoire and similar econ omies? How did one 
implement a program extending payment terms for government loans and public -backed guarantees 
for importers and exporters: how does this work in practice? How have export credit agencies and 
national development banks been mobilized: wha t did they offer during this period, and what device 
could be suitable for LDCs, especially for those which not having an export credit agency?  
1.19.   A second aspect of member -to-member information sharing and good practices related to 
more structural issues. Fo r example, Côte d'Ivoire wished to share information on how best to 
mobilize resources for trade finance in a country, including how to: improve the conditions of supply, 
i.e. how to get the banks to grant more letters of credit, import and export loans? H ow to introduce 
factoring and supply chain finance to the market? Côte d'Ivoire wished to receive advice and help 
on this point. As it had been noted in many analyses, Côte d'Ivoire would not be able to participate 
in a meaningful way in value chains as lo ng as local companies did not benefit from modes of trade 
finance adapted to these chains. Finally, on this point, Côte d'Ivoire wished to improve the conditions WT/WGTDF/M/41  
 
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  of application by companies in making trade finance requests locally and internationally (that  MSMES 
are registered so that they be granted guarantees or funding based on invoice, that they develop 
proper financials, and that they know what to ask when applying for trade finance). Local companies 
needed to substantially improve their information ab out trade finance products. They could certainly 
benefit from existing guides on trade finance, such as those published by the UK Federation of SMEs, 
in conjunction with the UK Institute for Export. The question was whether there were other such 
guides, or  information from other countries on trade finance for their businesses, which could be of 
use for other WTO Members.  
1.20.   Regarding the contribution of the Secretariat, Côte d'Ivoire asked whether the WTO could 
consider a WTO technical assistance program relat ed to trade finance. It asked whether the 
Enhanced Integrated Framework Secretariat could inform members about what has been done or 
what could be done in this context to facilitate access to trade finance for LDCs. It could be useful 
to study the possibil ity of further integrating trade finance into diagnostic studies and Integrated 
Framework projects. This has been done for some Asian LDCs. This has not yet been the case for 
African LDCs. The Secretariat could facilitate the adoption of a global business legal identification 
system, such as the Global Legal Entity Identifier (LEI). The legal entity identifier enabled importers, 
exporters, and banks to be recognized internationally, and thus to be accepted for trade -related 
credits and payments internationa lly. This solution had already been presented to the WTO and had 
captured the interest of many members. The Secretariat could facilitate direct contacts with the 
Global Foundation for Legal Entity Identifier (GLEIF). The Secretariat could also explore conc rete 
solutions which could be implemented to make it easier for businesses in LDCs and other affected 
countries, especially their MSMEs, to readier access trade finance. It could help identify the types of 
trade finance which could be mobilized within thes e countries. It could cooperate with international 
financial institutions in order to mobilize existing finance solutions for foreign trade.  
1.21.   The last third facet related to what the WTO could do in partnership with other international 
organizations such as  MDBs to facilitate trade finance for LDCs as well as with internationally 
recognized professional organizations , for solutions in this area.  
1.22.   Based on such elements, Côte d'Ivoire suggested that the WGTDF should move forward on 
making proposals, and report  to the General Council at a later stage on the progress achieved.  
1.23.   The Chair thanked Côte d'Ivoire for its statement and proposals, which were relatively precise 
in what it asked. In making remarks, she called on members to provide a sense of what they wis hed 
to do and not to do, so as to see how to make progress. She opened the floor for remarks and 
comments.  
1.24.   The Representative of Fiji, speaking on behalf of the ACP group, said that ACP countries had 
taken good note of the submission. They considered it as  carrying useful ideas that could contribute 
to the work of the WGTDF, considering the dire consequences of the pandemic and of climate change 
on the economies and trade of ACP members, in the context of the linkages between trade, debt 
and finance. Prior to the COVID crisis, many developing countries had already been showing 
evidence of debt distress, higher debt service, and current account deficits. The economic fall -out 
from the pandemic had aggravated the situation. A wave of sovereign debt default had  been looming. 
Large scale borrowing to meet this situation further exposed ACP countries to international markets, 
including to sudden changes of interest and exchange rates. The WGTDF had an important role to 
play in this discussion. In the context of th e pandemic, WTO members in a position to do so should 
be able to build a more resilient world. Other nations were currently inheriting a COVID -related debt 
burden. MSMEs played a critical role in the recovery for creating jobs and revitalizing economies. 
There was a need for predictable solutions for them to access finance and cross -border payments. 
In view of the weaker financial position in which a lot of members were in as a result of the pandemic, 
access by MSMEs to new and innovative sources of trade f inance was very important to the 
ACP group of members. Therefore, there was a need for sharing good practices, information, as well 
as opportunities, including through international support and other initiatives; there was an urgent 
need to explore concret e solutions for MSMEs access to trade finance, in line with the Doha mandate. 
He encouraged members to work towards an outcome in the context of MC12.  
1.25.   The Representative of Mauritius , speaking on behalf of the African group, said that the shock 
of the pand emic required financial resources and human capacity which were far beyond those 
available to African nations, small developing States and vulnerable economies. The United Nation's 
Food and Agriculture Organization (FAO) had estimated that over 130 million  people had been added WT/WGTDF/M/41  
 
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  to the ranks of under -nourished populations. This was a direct consequence of the COVID -19 
pandemic on developing countries. The continuation of the sanitary crisis impacted severely the 
recovery of poor and other developing countrie s in 2021. As developing nations were not a priority 
on therapeutics and vaccination, this delayed how those economies could open up and start 
recovering, one example being smaller countries dependent on tourism. Beyond the issue of 
vaccines, natural disas ters had not stopped during this period, and had hit hard the economies in 
question. Accordingly, most developing countries would see the achievement of their sustainable 
development goals negatively affected, notably in the area of trade. This applied to the objective of 
increasing the share of LDCs' exports in total exports. In this context, the African Group wished to 
strongly support the proposals made in WTO document WT/WGTDF/W/98, as well the elements 
contained in the statement presenting that documen t in this meeting. Both were pertinent in the 
face of the damages suffered by vulnerable economies and countries which had less resilience in 
recovering from the pandemic. The representative emphasized the importance of MSMEs 
employment and output in Afric an economies. Sub -Saharan Africa had the largest proportion of 
financially constrained firms in the world (54% of all firms). MSMEs were also linked to the 
empowerment of women in Africa and hence to the livelihood of families.  
1.26.   As a result, the African gr oup requested that the WTO urgently address  the issue of facilitating 
access to trade finance, particularly for MSMEs. This was a matter of urgency if local firms were to 
participate in international trade, and benefit from the recovery of export demand. In the context of 
MC12, the African group was looking at concrete measures. The African group associated itself to 
the statement of the ACP group in requesting concrete outcomes on trade finance. The African group 
was also interested in implementin g the declaration made by the Informal Group on MSMEs in 
December 2020, on MSMEs access to finance and cross -border payments. Therefore, the African 
group requested that the secretariat worked with other relevant international organizations to 
consider tec hnical areas related to enhancing MSMEs access to international trade finance. It wished 
to highlight the importance of this initiative in promoting the capacity of MSMEs. It hoped that it 
could be linked to other initiatives favouring private sector devel opment in Africa and other regions.  
1.27.   The representative of the European Union  (EU) thanked Côte d'Ivoire for bringing to the 
attention of the Working Group the Declaration on MSME's access to finance and cross -border 
payments adopted by the Informal Working  Group on MSMEs. The EU welcomed information sharing, 
as it was supportive of initiatives aiming at reducing trade finance gaps and of efforts deployed to 
advance the cause of MSMEs in international trade. The EU was keen on hearing suggestions from 
the ot her members of the Working Group, in particular from the countries in the first line (developing 
countries and LDCs), on the best way forward.  
1.28.   The EU thanked Côte d'Ivoire for elaborating on their contribution. It welcomed more 
information on the concrete challenges faced by companies to access trade finance. The EU thought 
that it would be useful to have the intervention by Côte d'Ivoire circulated in writing so as to share 
the information comprehensively with Brussels, and subsequently express views on it . 
1.29.   The EU supported experience sharing among members of the Working Group and would be 
happy to set up a presentation in some future Working Group meetings on types of technical 
assistance and capacity -building provided by European actors. The EU also encou raged developing 
countries and LDCs which had benefited from these programmes in the past to share their 
experiences in this group, in particular what had worked for them. The EU considered this kind of 
experience -sharing to be particularly relevant and us eful for other developing countries and LDCs.  
1.30.   The representative of Switzerland  thanked the Director -General for her presence in the 
Working Group. He had noted her encouragement to act in this field. He comm ended Côte d'Ivoire 
for the submission and reque sted that the oral statement be circulated. There was no doubt that 
improving access to trade finance for firms operating in developing countries and LDCs would 
contribute to enhancing the participation of these countries to world trade. This was an object ive 
that Switzerland pursued in the framework of its foreign economic policy. The proposal by 
Côte d'Ivoire was in line with the MSMEs package agreed by the Informal Group on MSMEs adopted 
in December 2020. On the proposal to establish a work program or a road map, Switzerland 
welcomed the proposal by Côte d'Ivoire. Switzerland stood to share in due course its good practices 
in terms of technical assistance to facilitate access to trade finance in LDCs. Switzerland would also 
welcome the engagement of the s ecretariat with members and with other relevant international 
organizations on that matter. Switzerland wished to hear from the Secretariat its views on how to WT/WGTDF/M/41  
 
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  structure the different streams of work, in particular views that related to secretariat activit ies for 
members, and that related to cooperation with other organizations.  
1.31.   The representative of Canada  thanked the Director -General for her views and Côte d'Ivoire 
for its submission. Canada saw the close links between trade promotion and access to trade finance, 
and the role that the WTO can play. Canada shared the view expressed by the Ambassador from 
Mauritius that the Secretariat should explore how could trade finance be better accessed through 
technical assistance offered by the WTO, working with the other international trade organizations to 
have a coherent solution to the problem. Canada would be supportive of that aspect of Côte d'Ivoire's 
proposal. Canada was looking forward to engaging with Côte d'Ivoire and with other members of the 
Working Group  in going forward on this topic.  
1.32.   The representative of Niger  congratulated the delegation of Côte d'Ivoire for its proposal on 
improving the ways and means to improve the access of MSMEs to trade finance in developing 
countries, in particular LDCs. Its sta tement echoed the statement made by the Ambassador of 
Mauritius speaking on behalf of the African Group. Niger was of the view that the COVID -19 pandemic 
had created many problems for MSMES, particularly those located in LDCs. In current regional 
initiativ es, there was an attempt to improve the business conditions of MSMEs. Therefore, Niger 
welcomed the proposals by Côte d'Ivoire, which were part of an overall institutional and structural 
effort for promoting MSMES in trade. In this connection, Niger was pa rticularly interested in the 
proposals made aimed at building capacity and at improving the prevailing business environment of 
local businesses. Any general step that could improve productive capacity and access to appropriate 
technologies, including in th e fields of energy, new technologies, communications, transport and 
finance was welcome. It was in this general context that Niger supported the initiative proposed by 
Côte d'Ivoire. It supported discussions aimed at finding appropriate solutions to the pr oblems that 
similar countries faced with MSMEs and access to trade finance. Discussions regarding how in 
practice to extend payment deadlines, promote payment deferral schemes, and trade finance 
programs were worthy of the sustained attention by the member s of the WTO.  
1.33.   The representative of the United States  appreciated this opportunity to engage directly with 
Côte d'Ivoire. The United States appreciated the submission and looked forward to engaging with 
the Chair and other members of the Working Group as i t worked to better understand it. The 
United  States was pleased to engage in a discussion on this agenda item. It took note that in the 
presentation by Côte d'Ivoire, there were some elaborations and changes that the United States had 
not yet had the oppor tunity to review, so it was important to share the presentation that 
Côte d'Ivoire made during the meeting. If Côte d'Ivoire wished to make changes to document 
WT/WGTDF/W/98, the United States would welcome reviewing them, and to share thoughts on a 
revise d proposal.  
1.34.   The United States' comments focused on document WT/WGTDF/W/98, as it had been 
submitted. It contained some interesting elements, although the United States wished further 
clarifications to improve its understanding; for example under paragraph  1.8, it would be useful to 
organize information sessions with the relevant legal entity identifiers regulatory and government 
bodies, to ensure that any anticipated work that was discussed in this working group was in 
coordination with, and did not contrad ict, work being done in these bodies. Discussions might also 
benefit from the clarification of a number of paragraphs, some proposals sometimes being repeated 
using different language, with a possible different meaning. Suggestions made in the document 
should therefore be clarified and be more clearly presented. Such clarifications would help the 
United  States evaluate the extent to which each suggestion in the document was consistent with the 
mandate of which referred to "recommendations on steps that migh t be taken within the mandate 
and competence of the WTO". For example, it was not clear that the WTO had competence to propose 
"means of facilitating MSMEs access to trade finance", from paragraph  1.1 of Côte  d'Ivoire's 
document, or "to explore concrete so lutions to enable companies in LDCs to have easier access to 
trade finance" in paragraph  1.3. These initial suggestions had been shared in an informal meeting, 
which unfortunately did not include Côte d'Ivoire.  
1.35.   The representative of China  thanked Côte d'Iv oire for its submission and the Director -General 
for her participation. China highly appreciate d Côte d'Ivoire 's presentation and great efforts to 
submit this communication which truly revitalize d discussions in the WGTDF . China also  noted that 
the content  of this submission was very much in line with the draft Declaration proposed by 
Côte d'Ivoire in the informal working group of MSME s, which was of significant importance to send 
out a positive message that the WTO was still relevant and responsive to the current challenges. WT/WGTDF/M/41  
 
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  China was always willing to continue to share its national practice in helping smaller businesses 
address difficulties in access to trade finance with all the interested members. China wished also  to 
call on members ' active engagement i n this regard.  
1.36.   The representative of Uruguay  thanked Côte d'Ivoire for its pertinent submission in the current 
context. Exploring specific ways and means to enable SMEs to have better conditions for accessing 
trade finance was very important. In this conte xt, Uruguay thought that it would be a good thing if 
the Secretariat considered how it could provide more assistance in this context and to organize 
information updates on the subject matter, so as to put members such as Uruguay in a position to 
take actio n in order to implement the proposal by Côte d'Ivoire.  
1.37.   The representative of Malaysia  expressed its appreciation to Côte d'Ivoire for its submission 
and for the Director -general in joining part of the meeting. For many years, the discussion in the 
working group had been focusing on addressing trade finance gaps. This remained an issue main ly 
for developing countries, and for MSMEs in particular. The COVID -19 pandemic resulted in global 
economic divergence affecting international trade. It has also led to a reduction in the supply of 
trade finance. Many developing countries, particularly the  poorest, had experienced increased trade 
finance shortages, impacting their ability to purchase essential goods, in particular food and medical 
equipment necessary to tack ling COVID -19, as outlined by the Director -General. Malaysia looked 
forward to the d iscussion on this area in the Working Group.  
1.38.   The representative of Côte d'Ivoire  thanked members and groups of members for the 
constructive comments made during this first discussion. Côte d'Ivoire was ready to deepen this 
discussion and exchange views on the subject. Côte d'Ivoire wished, through the secretariat, to 
transmit to all members its oral presentation, on the matters contained in WT/WGTDF/W/98. 
Côte d'Ivoire was open to providing additional information from any other delegations that wished 
to request it.  
1.39.   The Chair  noted that there was a high level of interest and support for the issues raised by 
Côte d'Ivoire, as well as an interest in pursuing the discussion on this submission towards an 
outcome. Côte d'Ivoire indicated its intention to distribu te its statement. The Chair had also heard 
that the WGTDF should be the place in the WTO to have this discussion, and that the working group 
could guide further efforts. There were some questions from members as to what the Working Group 
wanted, and how to  take the agenda forward. At that stage of the discussion, the Chair thought that 
it was time to ask the secretariat to assist in answering some of the questions posed during this 
initial round of interventions.  
1.40.   The secretariat  said that any remarks at thi s stage were tentative, subject to members 
agreeing on a way forward, and contingent on internal secretariat consultations. The secretariat 
probably also needed some clarifications from the "demanders" on certain proposals. It understood 
that Côte d'Ivoire  was requesting technical assistance from the WTO. At the present moment, trade 
finance was not a core part of the WTO technical assistance program, although there were some 
elements of it in the curriculum, for example in the form of a full course in the Geneva -based 
advanced trade policy course, a rather general course destined to the information of trade diplomats, 
and an e -learning module that probably required updating. Moreover, trade finance had routinely 
been part of regional trade policy courses un til such courses were streamlined. If the training offer 
was to be upgraded in this area, it would have to be discussed internally upon a request by members, 
and within the framework of the WTO technical assistance plan. The Secretariat recalled that 
techn ical assistance could also be provided individually to members on the basis of an expression of 
interest for a limited number of national seminars or workshops, to be made by members. In the 
past, Argentina and Nicaragua had been making such requests for n ational workshops on 
WGTDF -related topics (trade and finance, and trade finance). Requests had been accepted and 
national seminars had been held.  
1.41.   An important question guiding any potential capacity -building activity was also to identify the 
needs and potential recipients. While the WTO offered primarily technical assistance to trade 
diplomats and ministry officials, multilateral development banks ( MDBs) offered trust -fund financed 
capacity building on trade finance to trade bankers in low income countries. Eligible banks were 
those participating in the MDB's trade finance programs. At times, the WTO Secretariat participated 
as resource persons in te chnical assistance activities organized by MDBs, in the context of 
inter-institutional cooperation initiated by WTO senior management and discussed in the Working 
Group. MDBs also funded grants to allow junior trade bankers from their network of participat ing WT/WGTDF/M/41  
 
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  banks in developing countries to take the courses offered by the International Chamber of Commerce 
(ICC) Academy, which offered trade finance certification for bankers. WTO staff had in the past also 
been associated with the International Finance Corpo ration (IFC, World Bank Group), and other 
organizations such as the Financial Stability Board and the International Monetary Fund in 
IFC-initiated capacity building on trade finance and compliance, as discussed previously in the 
Working Group and show -cased by the 2019 IFC -WTO Publication on "Trade Finance and the 
Compliance Challenge: A Showcase of International Cooperation".  
1.42.   This was to say that the WTO was used to working with other organizations in capacity 
building, and that it would not be technically  difficult to work with them again on information 
sessions, technical assistance and capacity building activities, to be determined.  
1.43.   However, the WTO Secretariat did not know, and had not participated in any technical 
assistance directed towards importers and exporters. In low -income countries, applications for trade 
finance were often rejected due to limited understanding of trade finance by the demanders.  
1.44.   In the area of diagnostic s, the secretariat reminded that a few WTO LDC members had 
requested that tr ade finance be integrated in their diagnostic trade integration studies (DTIS), with 
a view to better understand local bottlenecks to trade finance availability. No African country had 
yet requested this. Such a possibility was only open to EIF beneficiari es, though. It had never been 
examined whether trade finance could be deal t with in the context of trade policy reviews.  
1.45.   Regarding information about trade finance tools, such as the Legal Identity Identifier (LEI), 
there had been on -going initiatives. The Financial Stability Board had been a sponsor of the Global 
Foundation for the Legal Identity Identifier (GLEIF), which was headquartered in Switzerland. 
Multilateral development banks increasingly requested their clients to acquire a LEI. To date, more 
than 1.6 million companies had adopted the LEI, including many banks and corporations  around the 
world. The LEI had been presented by the GLEIF in global Aid -for-Trade review sessions and in the 
Informal Group on MSMEs, attracting interest from members. GLEIF  representatives were known by 
the Secretariat. It would not be technically difficult to organize further presentations if this was 
asked by members.  
1.46.   Finally, it was recalled that several multilateral development banks operated trade finance 
facilitation p rograms, which facilitated the financing of trade transactions particularly from or to low 
income countries, as a "learning -by-doing" process for developing countries' banks involved to 
integrate into trade finance markets. Programs in place were relativel y similar in design. They 
contributed to link local banks on trade transactions with the rest of the financial system through a 
network of "issuing banks" and "endorsing banks". The main programs existed at the International 
Finance Corporation (IFC, World  Bank Group), the Asian Development Bank, the Islamic Trade 
Finance Corporation (ITFC, Islamic Development Bank Group), the European Bank for Reconstruction 
and Development, the Inter -American Development Bank, the African Development Bank and the 
African Export and Import Bank (Afreximbank). MSMEs, which were the large majority of firms 
requesting letters of credit and similar facilities to the banks involved in these programs, were the 
main beneficiaries of such programs. It could be asked to representati ves of multilateral 
development banks to make themselves available for a dialogue with members. This has been the 
case in previous meetings of the WGTDF.  
1.47.   The Chair  summarized some of the views and ideas expressed by members and the secretariat 
at that stag e of the discussion. As to the way forward, she asked members whether they should care 
to draw up a list of all actions already in place on which one could build and the potential steps that 
on which one could move forward, as a sort of "check -list" of "th ings to do " – which could constitute 
a potential road map for future work, bearing in mind that all this work may not be done by the 
WTO itself but that the WTO will keep in check and in review? Alternatively, should members 
elaborate broader, less specifi c language, in say, one or two paragraphs, expressing support to 
Côte d'Ivoire and committing best efforts individually and collectively  make progress on issues 
singled out? This second option would allow greater informality in the work of the working grou p, 
although one could also have one broad paragraph committing to progress and a list in annex, if 
members see this as an acceptable way forward. Drawing a list, even with a few bullet points, would 
require some member to sit down and work out what that li st should contain. If this last option was 
agreeable, thus one would probably need to have volunteer members/facilitators working with the 
Chair and Secretariat – say in an informal meeting, which could be open to all Members, should they 
wish to weigh in.  If the alternative option to prepare one paragraph or two was more appealing, the WT/WGTDF/M/41  
 
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  Chair said that she could propose a short text which would reflect some of the avenues for future 
work which one heard in the discussion, and which could be specified in the  summing up. However, 
before going any further, the Chair wished to hear Members on how to proceed.  
1.48.   The representative of the United States  requested clarification about what the next steps 
would be and how they related to WTO Document WT/WGTDF/W/98. The m ost important thing 
would be that the process remained member driven. Therefore, the United States suggested that 
Côte d'Ivoire develop a proposal for next steps based on document WT/WGTDF/W/98.  
1.49.   The representative of Côte d'Ivoire  pointed out that the pres entation that had just been made 
was very exhaustive and very well structured. The presentation had distinguished what the members 
could do together, what the secretariat could do by way of assisting members, and what the WTO  as 
an organization could do in  cooperation with other organizations. Côte d'Ivoire thought that this 
structure in three parts could be the working basis for members. It suggested that the Chair, once 
the communication of its presentation had been disseminated, convened members for cons ultations 
with a view to drafting a short road map. The resulting short draft document would thus focus on 
what could be done, at the level of members, with the secretariat, and with other organizations, in 
the short and medium run. Côte d'Ivoire stood rea dy to work with other members on drawing this 
roadmap, under the chairperson coordination, with all the members wishing to participate in this 
exercise.  
1.50.   The representative of Fiji on behalf of the ACP group said that the WGTDF should explore 
discussions an d knowledge -sharing in line with proposals made by Côte d'Ivoire, to reach concrete 
and sustainable solutions that could be implemented. The ACP group saw the utility to continue to 
extend invitations to representatives of MDBs, private sector and the secr etariat to shed light on 
potential avenues for progress, with a view to complementing members' information sharing. Fiji 
requested more regular meetings of the WGTDF, to be able to complete a work program ahead of 
MC12. Fiji was keen in engaging in more de tailed discussions towards this aim.  
1.51.   The representative of Switzerland  thanked the Secretariat for answering some of its 
questions. With respect to the way forward and how to organize further work, Switzerland suggested 
that it would be helpful to have mor e clarity regarding Côte d'Ivoire's proposal, so as to look at the 
various areas where members could work together. From this point of view, Switzerland thanked 
Côte d'Ivoire for accepting to submit in writing its presentation and explanations delivered at  the 
meeting, pertaining to document WT/WGTDF/W/98. On that basis, Switzerland trusted that 
members should be able to organize their work going forward. Switzerland embraced the proposal 
made by the Chair on the way the work could be structured.  
1.52.   The Chair  suggested that, as a start, the Working Group should organize  an informal meeting 
to concretize some of the ideas that have been heard from the floor during the meeting. The proposal 
for listing some of the initiatives that are available on trade finance, including to MSMEs, would form 
a good basis for those who wanted to be involved in the discussion. There was a suggestion for an 
informal task force of members, with or without facilitators, to meet and take the agenda forward 
and concretize what needs to be done. The Chair suggested an informal meeting, based on the 
expectation that Côte d'Ivoire would have provided its presentation in the form of an addendum to 
WT/WGTDF/W/98. If this was acceptable as a first step, one could see a way forward in building a 
work program. The Chair asked whether this was an acceptable way forward.  
1.53.   There was no further comment.  
1.54.   The Chair thus summed up the discussion on this agenda item. During the discussion, the 
Chair had heard a good level of interest and support by member s of the Working Group on Trade, 
Debt and Finance on the submission by Côte d'Ivoire. The COVID -19 pandemic had created 
additional challenges for some members with regard to accessing trade finance. MSMEs had been 
impacted in particular. The SME/MSMEs dime nsion of trade finance had been highlighted. Members 
agreed to pursuing work on the submission by Côte d'Ivoire, the WGTDF being the natural regular 
body in the WTO for doing so. There would be an informal meeting of the WGTDF soon, open to all 
available m embers, with an update by Côte d'Ivoire, and the consideration of a list documenting 
specific initiatives and trade finance availabilities that one can put forward to that informal group.  
1.55.   It was so agreed . WT/WGTDF/M/41  
 
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  2  AGENDA ITEM 2 .B: REPORTING TO THE GENERAL COUNCIL,  BEFORE THE MINISTERIAL 
CONFERENCE  
2.1.  The Chair  suggested that the Working Group waits for the final outcome of the discussion on 
the Côte d 'Ivoire proposal before considering how to report to the General Council at the end of the 
year. Previous reports prior to Ministerial Conferences were really a collection of the annual reports 
of the Working Group, with one paragraph at the end suggesting what to do after such Ministerial 
Conferences. This was perhaps the paragraph that the Working Group was aiming at. Many members 
had mentioned a work program, so one would look to see how this discussion would evolve. Perhaps 
was it therefore too early to figure out reporting at a higher level.  
2.2.  The representative of Fiji supported the view of the Chair on this agenda item.  
2.3.  The representative of the United Stated  requested a clarification as to whether the Working 
Group reported to the General Council or dir ectly to MC12?  
2.4.  The Chair answered that the Working Group reported to the General Council.  
3  AGENDA ITEM 2.C:  INFORMAL DISCUSSION ON ANY OTHER TOPICS THAT MEMBERS 
MAY WISH TO ADDRESS IN FUTURE MEETINGS  
3.1.  The Chair asked members if they had an interest in raisin g other issues or topics.  
3.2.  The representative of the United States  wished to share views on three areas: how the Working 
group carried out its work ; the competence of the working group ; and possible areas for future work. 
The work of the Working Group had t o be member driven. This meant that the working group should 
meet on the basis of members ' request s for agenda items and of members ' submissions to the 
Working Group. It also meant  that before the secretariat prepared and delivered a report or other 
analys is to the Working Group, or before it undertook other work on behalf of the Working Group, 
members needed to agree by consensus to a proposal by a member for such efforts. It further meant 
that members needed to agree by consensus to invite outside speaker s to meetings of the Working 
Group. The United States did not seek to limit the activities of the Working Group arbitrarily, but to 
ensure that work of the Working Group remained member driven. Regarding the competence of the 
Working Group, one needed to a cknowledge the limitations on the mandate and competence of the 
WTO and of the Working Group. Neither the WTO nor the Working Group had institutional 
competence or expertise in the area of access to finance. Therefore, it was concerning when the 
secretaria t discussed publicly access to trade finance and suggested that it was part of the 
WTO agenda. Other organizations and players had this expertise.  
3.3.  The United States suggested some ideas for members' consideration, regarding areas for 
discussions and exchan ge in the Working Group. For example, one could discuss what actions 
governments had taken to incorporate trade finance considerations into their trade strategies; one 
could seek information on the role that different trade finance products play for suppli ers and buyers, 
and how demand and supply for these products have been evolving; such information would provide 
for an improved basic understanding of trade finance today, and would enrich the discussion. The 
understanding as to how advanced technology is impacting trade finance (this includes blockchain, 
artificial intelligence, machine learning and the internet of things) could be advanced.  
3.4.  The Chair thanked the United States for its statement and ideas on way s forward. The Chair 
urged members to provide statements to the secretariat.  
3.5.  With this, she closed  the meeting.  
__________  