 RESTRICTED  
  
WT/COMTD/AFT/M/47  
 
10 Janua ry 2020 
(20-0291) Page: 1/8 
Committee on Trade and Development  
Forty -Seventh Session on Aid for Trade    
 
 
NOTE ON THE MEETING OF 5 NOVEMBER  2019  
Chaired by  H.E. Chad Blackman, Barbados  
 
Contents  
A. ADOPTION OF THE AGEN DA ................................ ................................ ....................  1 
B. IMPLEMENTATION OF TH E 2018 -2019 AID -FOR-TRADE WORK PROGRAMME  ..........  1 
I. Resource Mobilization and Implementation Activities  ................................ ......................  1 
II. Mainstreaming  ................................ ................................ ................................ ...........  2 
III. Regional Dimension  ................................ ................................ ................................ .... 5 
IV. Private Sector  ................................ ................................ ................................ ............  5 
V.  Monitoring and Evaluation of Implementation and Development Effectiveness  ...................  6 
C. OTHER BUSINESS  ................................ ................................ ................................ .... 8 
 
A. ADOPTION OF THE AGEN DA 
1. The Agenda, as circulated in WTO/AIR/COMTD/AFT/ 15 was adopted  witho ut amendment s.  
B. IMPLEMENTATION OF THE  2018 -2019 AID -FOR-TRADE WORK PROGRAMME  
I. Resource Mobilization and Implementation Activities  
2. The representative of the World Bank  Group  (WBG)  discussed the 2019 Fall meeting of the 
World Bank and International Monetary Fund , and outcomes of the  Development Committee  
meeting. The Development Committee had welcomed  the 2020 edition of the World Development 
Report "Trading for Development in the Age of Global Value Chains "1 (GVCs)  which  looks at the 
development promise of GVCs and the challenges countries  faced in trying to integrate and move 
up value chains. The Development Committee had also issued a call  to ensure that the gains fr om 
trade were inclusive  and for the global community  to strive for "free, fair, non -discriminatory, 
transparent, predictable and stable trade and investment".  
3. The WBG's Geneva office was planning a new lecture series entitled "F rontiers and 
Development Researc h" to present WBG  research  at WTO . On 5 December, a lecture would take 
place on the Belt and Road Economics2 report . Other reports recently  released included : Africa's 
Pulse3 focusing on the digital transformation of the continent ; Harvesting Prosperity: Technology 
                                                
1 World Development Report 2020, Trading for Development in the Aid of Global Value Chains, 
https://www.worldbank.org/en/publication/wdr2020  
2 Belt and Road Economics: Opportunities and Risks of Transport Corridors, 
https://www.worldbank.org/en/topic/regional -integration/publication/belt -and-road-economics -opportunities -
and-risks-of-transport -corridors   
3 Africa's Pulse, https://www.worldbank.org/en/region/afr/publication/africas -pulse WT/COMTD/AFT/M/47  
 
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  and Productivity Growth i n Agriculture4 that took stock of the increasing impact s of technology on 
agricultural performance ; and The Future of Work in Africa5 which looked at  how digital 
transformations were affecting labo ur market performance . The theme of the 2021 Wor ld 
Developm ent Report was "Data for Development ". The Report  would analyse how data produced  
could be used to inform  efficient  and inclusive  development policies.  
4. The representative of Chad, speaking on behalf of the Least Developing Countries (LDCs),  said 
he viewed implement ation of the 2018 -2019 Aid -for-Trade Work Programme as a priority as it 
promoted economic diversification  and empowerment in LDCs and considered the inclusi on of women 
and youth  in employment. Such inclusiveness in employment would promote economic growth and 
improve the integration of LDCs in global trade. For this to happen, further Aid-for-Trade support  
was necessary  from the international community,  from trade and development institutions and from 
other WTO Members .  
II. Mainstreaming  
5. The representative of Canada  provided an update on its 11th Trade Policy Review  (TPR) held 
on 12 and 14 June 2019. Canada was encouraged by the many Members wh ich had voiced support 
for its inclusive approach to trade which sought  to ensure t hat underrepresented groups – including 
micro, small and medium -sized enterprises ( MSMEs ), women and indigenous people – could engage 
in, and benefit from , trade and investment opportunities. Inclusive trade support ed economic growth 
that was broadly based and so helped maintain public confidence in an open, rules -based trading 
system.  
6. Canada recognized the important role of trade in stimulating economic growth and promoting 
sustainable development. It remain ed engaged in discussions on trade and developme nt, which 
could  offer an opportunity to increase economic prosperity for all WTO Members, particularly for 
developing countries, by enhancing predictability in the multilateral trading system through the 
strengthening of international rules. Canada continu ed to work with fellow WTO Members to 
implement new WTO agreements, such as the Trade Facilitation Agreement  (TFA) , and to address 
the concerns of developing countries about taking on new commitments.  
7. With regards to Aid for Trade, Canada ha d established program mes that support ed the 
development of an enabling environment in partner countries, strengthening trade -readiness and 
competitiveness. Canada's Aid-for-Trade commitments include d those at the multilateral and 
regional levels, for example  through its work with the International Trade Centre  (ITC), regional 
initiatives like the Canadian Trade and Investment Facility for Development6, or through the 
Pan-Africa Regional Development Program7; it also include d bilateral country -level actions through 
individualized programming activities; and, at the level of civil society and through innovative 
public -private partnerships, such as the Global Alliance for Trade Facilitation8 and through its 
partnership with the Trade Facilitation Office Canada9. Since 2015 -16, Canada ha d increased 
Aid-for-Trade funding, contributing over CAD 1.5 billion in Aid-for-Trade projects  and launched the 
Expert Deployment Mechanism for Trade and Development10 in June 2019 .  
8. The representative of North Macedonia  expressed his country's strong support for the 
rules-based multilateral trading system. North Macedonia was co-sponsoring the initiatives on 
e-commerce and domestic regulation on services. Furthermore, it continue d to work on gender 
equality, as well as on the informal Working Group on MSMEs.   
9. In July 2019 , North Macedonia  had successfully concluded its second TPR, during which 
Member s had recognized the progress made in implementing policies for fostering consistent growth 
                                                
4 Harvesting Prosperity: Te chnology and Productivity Growth in Agriculture , 
https://openknowledge.worldbank.org/handle/10986/32350  
5 The Future of Work in Africa: The Roles of Skills, Informality, and Social Prot ection in Unleashing the 
Promise of Digital Technologies for All , https://www.worldbank.org/en/region/afr/publication/africa -future -of-
work 
6 The Canadian Trade and I nvestment Facility for Development (CTIF) , https://c -tif.ca/  
7 Pan-Africa Regional Development Program , https://www.international.gc.ca/gac -
amc/publications/odaaa -lrmado/pan_africa -panafricain.aspx?lang=eng  
8 Global Alliance for Trade Facilitation , https://www.tradefacilitation.org/  
9 Trade Facilitation Office Canada, https://www.tfocanada.ca/home.php  
10 Expert Deployment Mechanism for Trade and Development , https://edm -mde.ca/  WT/COMTD/AFT/M/47  
 
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  and stabilizing the macroeconomi c and financial environment. North Macedonia had also been 
commended for making significant progress to improv e its business environment.  
10. International trade was considered as an engine of the economic development of 
North  Macedonia, enhancing market acce ss at the national, bilateral and regional level s. 
North  Macedonia had  established a National Committee on Trade Facilitation in 2017  and undert aken 
measures to facilitate trade, such as adopting a new Law on Excise Duties and the new Customs 
Processing Sy stem for Declarations and Excise Documents which  establishe d paperless customs 
operation s.  
11. North Macedonia  had applied to  accede to the Government Procurement Agreement (GPA) in 
March 2017 . In February 2018 it had  submitted an initial Market Access  offer,  and believed that  it 
would become a member of the GPA  soon.  
12. North Macedonia’s Economic Reform Program me 2019-2021 prescribe d policy tools and 
measures for economic and structural reforms, which include d: energy and transport market reform, 
agriculture sector development, industry, business environment and reduction of the informal 
economy, trade -related reforms, education and the labour market.  Many of these economic reforms  
had been  supported by development projects. North Macedonia highly value d the importance of Aid 
for Trade in helping countries to face challenges of integration in the multilateral trading system.  
13. The Chair person  listed the TPRs of Peru and the Lao People's Democratic Republic that would 
be conducted before the next CTD Aid -for-Trade meeting. An opportunity would be given to the  
representatives of these Members  to make a statement at the next meeting.  
14. The representative of the  Enhanced Integrated Framework (EIF)  underscored the importance 
of mainstreaming as a core objective of the EIF programme. The EIF had  intensified efforts around 
Goal 1 of the EIF Strategic Plan 2019 -202211 which  aimed to improve the trade environment for 
conducive and sustainable growth in the LDCs. Specifically, the EIF's  focus within the reporting 
period ha d been on providing support to ensure that the institutional frameworks for trade were 
effectively and sustainab ly embedded. In this light, projects for consolidating the gains of 
institutional capacity -building interventions ha d been approved in Lesotho and Malawi.   
15. On evidence -based policy and regulatory frameworks , the EIF was focused on ensuring that 
LDC trade a gendas were based on solid analytical studies that identif ied challenges and ma pped the 
way forward for trade -led development. The country -led Cambodia Trade Integration Strategy 
(2019 -2023)  demonstrate d the importance of national ownership and uptake of t he trade analytical 
process.  
16. Through  Diagnostic Trade Integration Studies updates and related action matrices, the EIF 
was identifying priorities for action through inclusive dialogue mechanisms. Currently, 41 EIF 
countries ha d quality functioning public -private coordination mechanisms  with fruitful, ongoing 
conversations on trade -related matters . For example, in Comoros, the  EIF assisted in the 
development of a youth entrepreneurship programme, financed through the French Embassy , and 
a private sector microfinance institution (MECK -Moroni)  aimed at promoting 'Made in Comoros'.  
17. The EIF ha d facilitated the integration of trade into the Poverty Reduction Strategy Papers of 
41 LDCs. Ten more EIF countries had produced quality trade policies with EIF support. These trade 
policies use d a pro -poor and gender ‑inclusive lens . The representative  cited an example from 
Kiribati , where the  trade policy -making process had been  ad hoc  and encountered mixed results. To 
remedy this, the EIF had supported Kiribati to formulate its first Trade Policy Framework (TPF), 
involving government ministries, the p rivate sector and civil society.  
18. In the area of p roductive capacity -buildin g, the EIF  continued its support to improve the 
participation of LDCs in strategic value chains. In 2019, an investment of over USD 23 million ha d 
been directed to these interventi ons. She cited the ITC -supported SheTrades in Zambia  as an 
example. The project had delivered technical trainings to over 120 women -owned businesses in 
2019, to enhance their business export strategies and access to finance . Other productive 
                                                
11 EIF Strategic Plan, https://www.enhancedif.org/sites/default/files/eif -strategicplan -2019-2022.pdf  WT/COMTD/AFT/M/47  
 
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  capacity -building projects had been  directed to the sesame sector in Niger, promoting eco -tourism 
in Comoros and the hides and skins sector in Chad.   
19. On digital economy, the EIF had partnered with the United Nations Economic and Social 
Commission for Asia and the Pacific (UNESCAP ) to launch a regional capacity -building project in 
South Asia aimed at enhancing the e -commerce capacities of selected women -led MSMEs . The 
partnership with  the United Nations Conference on Trade and Development (UNCTAD ) to support 
LDCs in assessing their e-trade readiness continue d, with new reports for Lesotho published , and for 
Malawi, Tuvalu and Kiribati being finalized. Following prior assessments, Cambodia had adopted an 
e-commerce law, and Nepal an e-commerce strategy.  
20. The EIF was  working closely with partners to support the LDC graduation process. A project 
on LDC graduation implemented by the WTO consisted in  assessing the trade -related implications of 
LDC graduation. The EIF was also working on investment  promotion. Across the LDCs, women 
continue d to face constraints that limit ed their participation in global trade. The EIF Women 
Economic Empowerment Initiative ha d been developed to address these. Several proposals ha d been 
received and were under review. Each proposal focuse d on gender mainstreaming in trade and 
empowering women entrepreneurs in the LDCs to benefit from trade . The EIF had also made good 
progress in fundraising and communications. Within the reporting period, USD 14 million in new 
funding pledges/commitments had been secured from six donors . 
21. The representative of Chad, on behalf of LDCs, expressed appreciation of the report and action 
by the EIF. The EIF was relevant to LDCs as it helped them increase their export capacity by putting 
together strategies, drafting tailor -made plans and making better use of potential.  He encourage d 
donors to make more resources available  as this  would enable access to  new markets. He hoped 
that the EIF would be extended beyond its initial phase.  
22. The representative of Mali thank ed the EIF for its support . She highlight ed projects on shea 
butter, gum Arabic and mango  and request ed further suppor t for women's economic empowerment , 
including through invest ment in the shea butter sector .  
23. The representative of the Standard s and Trade Development Facility (STDF)  recalled that the 
program me had been externally  evaluated . The final evaluation report had been issued in July  and 
had concluded that the STDF was responding to the needs of developing countries . It had delivered 
outputs and results beyond what might be expected given t he limited budget and resources  of the 
STDF . Also , that the STDF secretariat, which was housed in the WTO, was regarded as efficient, 
effective, and responsive by its stakeholders.  Members were currently working on implementation 
recommendations to further  improv e its functioning .  
24. The STDF was develop ing a new five -year strategy for 2020-2024 to be launched  towards the 
end of January 2020. The STDF would continue to operate as a coordination and a knowledge 
platform with focus placed on identifying and dis seminating good practice. The STDF would focus on 
convening and connecting a wide range of stakeholders and partnerships  and continue as a funding 
mechanism to help developing countries develop, but also to implement collaborative, innovative 
sanitary and phytosanitary (SPS) projects that can act as catalyst.   
25. In October 2019, the STDF working group had considered progress in a number of STDF work 
areas includ ing public -private partnerships to build SPS capacity . It also look ed at helping countries 
to assess and prioritiz e their SPS investments needs , using an evidence -based approach to inform 
SPS planning and decision -making. Re cently, the STDF was also working on trade facilitation , more 
specifically how to reduce SPS -related trade transaction costs in the trade of food and agricultural 
products , and working on electronic certification  with the aim to help developing countries m ove 
towards paperless trade. The working group established an advisory group on electronic certification  
that brought together  a total of 11 organizations . The working group also approved an array of 
innovative and collaborative SPS projects. Several of th em benefiting LDCs including  Afghanistan, 
Mozambique, Laos , Cambodia , etc. 
26. The STDF counted 50 projects globally  at various stages of development, implementation and 
evaluation. The next deadline for the submission of funding applications to the ST DF was 
10 January  2020. Information on how to apply to the STDF and on the facility was available at the 
STDF website . WT/COMTD/AFT/M/47  
 
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  27. The representative of China  briefed  the Membership on the new development of the  China's 
LDCs and A ccession  Programme , also known as "the China programme " which had been established 
in early 2011 . The 8th China Round Tables on WTO Accessions would take place in Moscow on 
4-5 December 2019, with the  theme of "Accession and WTO reform: way to MC12 ". More information 
of the China Round Tables, as well as the previous meetings, was available on the WTO website.  
28. The representative of the World Bank Group  (WBG)  recalled the core elements of the Bank's  
Aid for Trade strateg y: (i) to remain the world's lead ing supplier of impleme ntation assistance in the 
field of trade facilitation; (ii) to support trade policy formulation in implementation and negotiating 
in services, including digital trade – an important aspect of digital readiness of digital diagnostics; 
(iii) to help  countrie s seeking accession to the WTO; (iv) technical assistance in the field of quality 
infrastructure ; and (v) inclusiveness, particularly with regards to trade and gender.  
29. The representative of Chad, on behalf of the LDCs, thanked China and the STDF for their 
presentations.  
III. Regional Dimension  
30. The representative of  Japan  reported on the Seventh Tokyo International Conference on 
African Development ( TICAD 7 ). The 3-day conference had welcomed over 10,000 participants 
including 42 African leaders  and focused on promotion of business. Japanese private investment in 
Africa  amounted to USD 20 billion over the past three years. For the first time in the TICAD’s 16 -year 
history, private companies were recognized as official partners, and the number of companies 
participating in TICAD7 had more than doubled since its 6th edition . Over the next three years , Japan 
planned to invest over USD 20 billion in Africa.  
IV. Private Sector  
31. The representative of the International Trade Centre (ITC)  announced that the 19th World 
Export Development Forum would be held at the A frican Union in Addis Ababa, Ethiopia, on 
18-22 November 2019 . It would focus on "Trade and Invest in One Africa"  covering trade and 
investment on the  African Continental Free Trade Area  (AfCFTA ), young entrepreneurs and quality 
jobs. SheTrades Global 2019 would be held during the same week and, in addition to policy 
discussions and B2B, would build on the Buenos Aires Declaration and Women 's Economic 
Empowerment. SheTrades was planning a dedicated AfCFTA  workshop for women entrepreneurs . 
The ITC would partner with the International Labour Office (ILO), the United Nations Capital 
Development Fund, UNCTAD and UNIDO to jointly organize the YES Forum to empower youth 
entrepreneurship.  
32. ITC had teamed up with Paypal, Payoneer and eBay, to host a number of training workshops 
to reduce digital barriers for MSMEs in Central America. Organized in El Salvador , more than 
200 women entrepreneurs in the handicraft sector from 6 Central American countries  had benefited 
from training in e -commerce . ITC with the European Union were to  launch the ASEAN Regional 
Integration Support – Myanmar Trade Related Assistance to contribute to greater connectivity and 
economic integration between the country and the Associat ion of Southeast Asian Nations.  
33. ITC had  supported the Government of Afghanistan in developing its National Trade Policy  to 
enhance Afghanistan' s export competitiveness and foster coherence across government.  ITC ha d 
also launched the Rules of Origin Facili tator with WTO and W orld Customs Organization  to provide 
MSMEs access to a unique searchable database on corresponding rules of origin.   
34. The ITC was in  discussion with the Commission of the Economic Community of West African 
States to launch a customized T rade Map tool for the West African region. ITC had  also sponsored a 
delegation of African designers and models to attend World Cotton Day  on 7 October 2019, where it  
had showc ased the "Route du coton " to build sustainable African garment textile and clothi ng. 
35. ITC was also accompanying 100 companies from 22 countries in Africa, Asia, Latin America 
and the Caribbean to the China International Import Expo . ITC ha d been implementing its goals o f 
creating new opportunities to scale up South -South trade and inves tment as well as helping them 
to meet potential business partners and explore ways to tap into the Chinese market.  WT/COMTD/AFT/M/47  
 
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  36. The representative of Chad, on behalf of the LDCs, highlighted the importance of the ITC's 
role towards MSMEs.  The representative of Mali also praised ITC for the fashion show on World  
Cotton Day. The representative of Colombia  noted that ITC  was developing a project targeting the 
agricultural sector  and thanked them  for developing and presenting the rules of origi n tool . 
V. Monitoring and Evaluation of Implementation and Development Effectiveness  
37. Under this agenda item, the Chair outlined how he proposed to prepar e the 2020 -21 biennial 
Aid-for-Trade Work Programme . On process , his intention was to secure agreement at the CTD 
Aid-for-Trade meeting and then submit the new biennial Work Programme to the General Council 
ahead of the WTO Ministerial Conference  under his own responsibility. His objective w as to have the 
document ready  by the first General Council of 2020 . He requested the Secretariat to reach out to 
Members in different groupings to seek input on issues and concerns that they would like to see 
addressed. He recalled that the 2018 -19 Work Programme had managed to strike  a good balance 
and allowed all Members to see their concerns reflected . Receiving input from Members at an early 
stage would ensure that Members could move forward with the Work Programme in an efficient 
manner.  
38. On content , he grouped his remarks into tw o areas . First, he recapped the content of the 
current 2018 -19 Work Programme . Second, he recalled the themes discussed at the Global Review 
and outline d some issues that, in his view, deserve d inclusion in the 2020 -21 biennium .  
39. The 2018 -19 Aid-for-Trade Work Programm e (WT/COMTD/AFT/W/75)  focused on  "Supporting 
economic diversification and empowerment for inclusive, sustainable development through Aid for 
Trade" . It had struck  a careful balance between established issues such as industrialization, 
economic  and export diversification and current perspectives on such areas as MSMEs , e-commerce 
and women's economic empowerment . This balance had also maintained in the joint O rganisation 
for Economic Cooperation and Development - WTO At a Glance report published at the Global 
Review.  
40. A message that emerged from the monitoring and evaluation exercise conducted in support 
of the July 2019 Global Review was just how critical the policy objective economic diversification 
remained for most WTO Members. There was unanimity among LDCs on the importance of pursuing 
economic diversification, and by extension export diversification. Given just how key these aims 
remained to Members, he suggested that they be kept in mind in the new Work Programme.  
41. At a thematic le vel, the Global Review had been diverse . Economic diversification and the 
empowerment of women were the focus of the highest number of sessions. Other issues discussed 
include d LDC graduation, SPS and T echnical Barriers to Trade (TB T), climate change, rene wable 
energy, trade facilitation, quality infrastructure, trade finance, digital connectivity and e -commerce, 
intellectual property, fisheries, as well as trade and peace. There were national sessions and 
regionally focused ones.  
42. A reading of the summary report  highlighted some possible themes for future work on  
inclusivity and empowerment: both for groups of Members and for groups in society . LDCs 
highlighted their issues, and the challenge of graduation. Many Members had also referenced 
women's economic empowerment and pointed to links with the 2030 Agenda. Digital connectivity 
was another issue that emerged strongly . Understanding the different initiatives in this space and 
how to mobilize funding was another possible area where there was clear demand.  Green growth 
had been another issue  raised by many . Baking sustainability into economic development and 
diversification strategies was a point mentioned in many interventions . A related concern was that 
of reconstruction and coping strategies in the face of  climate change. A series of other specific issues 
could  also warrant attention through dedicated workshops.  
43. Some of these specific issues include d Aid-for-Trade approaches to the issues of fragile and 
conflict -affected states and how to ensure that Aid for Trade was results -oriented, demand -driven 
and country -owned. The Chair also highlighted interest in understanding the growing engagement 
of South -South partners. There were  additional perspectives on the topic  of economic diversification 
which could be usefully explore d through workshops.  WT/COMTD/AFT/M/47  
 
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  44. The representative of Chad, on behalf on the LDCs, underscored the importance of Aid for 
Trade and its Work Programme and said that the group would focus on substance once the 
information would be provided.  
45. The representative of Canada  recalled the country's recent participat ion in a workshop of the  
dedicated session of the Council for Trade and Services on facilitating the increasing participation  of 
LDCs in  trade and servi ces. The experiences, successes  and challenges shared by LDCs had offered  
valuable insight s. Canada noted that they would support work about  LDC trade and services . 
46. The representative of the European Union appreciated the inclusive approach and clear 
proce ss leading to the  formulat ion of  the Aid -for-Trade Work Programme for 2020 -2021. She 
encourage d other Members to also engage in such constructive and inclusive process.  
47. The representative of China  expressed support for the discussion on the upcoming Work 
Programme  and shared her views on the 2019 Global Review . Responding to calls for preserving the 
multilateral trading system as a driver for development, China was ready to do more to build on  
existing success and remained open to the further  discussion s. 
48. The representative of the Secretariat  provided a report on the workshop on "MSMEs and 
Access to Finance" held in the morning of Tuesday, 5 November 2019 . In his opening remarks, the 
Chair, Chad Blackman, Ambassador of Barbados , had recalled the critical importance for MSMEs to 
expand and scale up production and, therefore, be able to serve a broader customer base, both 
national and international.   
49. Marion Jansen, Chief Economist and Director in the Division of Market Development , (ITC) had 
set the scene by highlighting the importance of connecting the real economy to the financial sector. 
Financing for MSMEs was a key component of achieving the 2030 Agenda. To boost investment in 
small firms, stronger local investment facilitators (actors which connect firms to investors) were key. 
She emphasized the role Aid for Trade could play in strengthening local investment facilitators and 
the capacity of MSMEs to "speak investment language ". Aid for Trade c ould bridge the MSME finance 
gap through better prepared MSMEs and stronger local investment facilitators.  
50. Crispin Conroy, Representative Director at the International Chamber of Commerce (ICC)  
explained the work of  its Banking Commission  that he lped business,  particularly small and 
medium -sized companies  (SMEs) , access the financing they need to grow. Trade finance was a 
particular problem with MSMEs accounting for almost two -thirds of rejected trade finance 
transactions. To ensure that companies were able to access the financing they need ed, ICC produce d 
voluntary rules and guidelines  so companies and governments around the world s poke the same 
regulatory language. Bringing trade finance experts from over 70 countries together, ICC also serve d 
as a forum for t hose who s ought  to develop common strategies and standards to free up financing 
for SMEs.  
51. Kijin Kim, Economist in Economic Research and Regional Cooperation Department at the Asian 
Development (ADB)  discussed the importance of addressing the large unmet de mand in trade 
finance. ADB 's trade finance survey found there is a trade finance gap of about USD 1.4–1.6 trillion, 
or around 8% of world merchandise trade, an issue which affects MSMEs more than larger firms. He 
outlined three main challenges in trade fin ance. First, the continued use of paper -based transactions 
which were prone to costly delays and errors. Second, financial institutions were required to conduct 
significant due diligence, so raising the cost of supplying trade financing. Third, while banks  require d 
knowledge of their clients to mitigate information asymmetry, this pose d significant hurdles in 
MSMEs accessing finance. He discussed ways in which digitalization and automation c ould help 
address issues such as high -transaction processing costs and costly know -your-customer 
procedures. Technologies c ould help reduce costs and facilitate transactions by eliminating manual 
documentation and facilitate risk assessment of MSMEs through data collection. He highlighted the 
role governments and institut ions can play in developing digital infrastructure, harmonized 
standards, and regulations to encourage widespread technology adoption.  
52. Discussions on the presentations focused on the role standardization and model laws, including 
those developed by UNCITR AL, play ed in reducing transaction cost and facilitating access to finance. 
The panellists  also explored common reasons for rejected transactions and the support provided by WT/COMTD/AFT/M/47  
 
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  international organizations in addressing these challenges, particularly in bridgi ng the gap between 
perceived and actual risk of lending to MSMEs.  
53. In the second segment of the workshop, Andre Casterman, Member of the International Trade 
and Finance Association Board (ITFA)  focused his presentation on the role Fintech plays in facilita ting 
access to finance for MSMEs. He stated that regulatory requirements and de -risking may have 
unintended consequences on trade financing, particularly for MSMEs. Technology enable d access to 
finance by facilitating the provision of on -demand transaction -level services and real -time 
processing. Fintech aim ed at increasing efficiency and/or modernizing existing practices to the 
benefit of their clients and investors. Most Fintech companies were collaborating with trade banks 
and act ed as software solutions  or as hubs of new eco -systems. He provided a few case stories from 
ITFA members who ha d successfully leveraged new technologies to bridge gaps in access to finance. 
He noted future trends in this area including an increasing number of platforms to facilitate 
short-term financing, more institutional investors entering the market, and increase d use of machine 
learning and digital asset technology. He identified regulatory cooperation as a critical enabler.  
54. Emmanuelle Ganne, Senior Analyst in the Economic Research and Statistics Division at the 
WTO gave a brief introduction to blockchain technol ogy. Her presentation focused on the role 
blockchain technology plays in enabling MSME finance, including trade finance. She presented 
various projects that leverage d distributed ledger technologies to ease peer -to-peer financing, 
reduce costs and streamli ne trade finance procedures, facilitate compliance with 
Know -Your-Customer legislation, help assess credit worthiness, and help SMEs to build a credit 
history and monetize their collaterals through tokenization.  
55. The presentation by Cecile Barayre -El Shami , Program Manager, ICT Analysis Section , 
UNCTAD  gave a brief introduction to UNCTAD's Programme on Rapid e -Trade Readiness Assessment 
and presented the top ten challenges faced by LDCs in e -commerce development. In particular, 
access to finance remain ed costly and constrain ed the ability of MSMEs to emerge and expand. She 
highlighted a number of common challenges MSMEs and LDCs face d. Banks typically len t to big firms 
in traditional industries . E-comm erce and start -up companies were viewed as risky investme nts. 
MSMEs were often forced to rely on private or informal sources of funding. She underscored the 
need for financial literacy, increase d awareness of incubators, lending standards and products, and 
increase d financial inclusion. She cited the findings of  Uganda Rapid eTrade Readiness Assessment.   
56. In closing, the Chair  concluded by highlighting a few key points emerging . These included: 
the role of standards  to facilitat e technology solutions and bridge the MSME financing gap ; facilitating 
information exch ange between the real economy and the financial sector ; the challenge of scaling 
up fintech innovations so as to get around the market limitations in the traditional financial sector ; 
the role of technology in reducing compliance costs for regulatory and m arket risk ; the potential 
offered by blockchain technology to decentralize and disintermediate financial transactions, with 
enhanced traceability, trust, and automation ; and the  digital connectivity dimension to access to 
finance.  
C. OTHER BUSINESS  
 
57. No item was raised under "Other Business".  
58. The meeting was adjourned . 
__________  