PROJECT TO DEVELOP A ROAD MAP OR WORK PROGRAMME FOR ISSUES RELATING TO ACCESS TO TRADE FINANCE FOR MICRO, SMALL AND MEDIUM-SIZED ENTERPRISES (MSMES) IN THE CONTEXT OF COVID‑19

COMMUNICATION FROM CÔTE D'IVOIRE

Revision

Côte d'Ivoire submits this text proposal as a basis for discussion with a view to the adoption of a work programme or road map in the context of the activities of the Working Group on Trade, Debt and Finance, and reserves the right to revise it or propose additional elements and/or provisions. This proposal updates the proposal previously made in document WT/WGTDF/W/98, which was explained in document WT/WGTDF/W/98/Add.1. This updated version seeks to incorporate into the proposal the comments made by many other delegations.

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1.1.  The aim of this proposal is to enable WTO Members to take all possible steps to consider and/or propose means of facilitating the access of micro, small and medium-sized enterprises (MSMEs) to trade finance. This should enable MSMEs, particularly in developing countries and least developed countries (LDCs), to make progress in solving the problems they face regarding trade finance, which have intensified as a result of COVID‑19, in a context of economic recovery during and after the pandemic.

1.2.  Most developing countries and LDCs are still facing significant difficulties regarding access to trade finance. These difficulties, which are major obstacles preventing MSMEs from seizing the trade opportunities provided by the WTO Agreements, have grown more serious as a result of COVID‑19.

1.3.  Access to finance has always been the main obstacle to growth for most MSMEs in developing countries and LDCs. In this regard, it should be noted that sub‑Saharan Africa accounts for the highest proportion of financially constrained SMEs in the world (54%). The finance gap for the 44 million MSMEs in sub‑Saharan Africa was estimated at USD 331 billion in 2018. In Africa, the need for trade finance alone is estimated to be over USD 80 billion.

1.4.  It should be noted that the financial situation of MSMEs has deteriorated significantly as a result of the COVID‑19 pandemic. Many MSMEs are still feeling the immediate effects of COVID‑19. They are facing drastic reductions in revenue because of the fall in demand, with traditional sources of cash drying up. Furthermore, despite efforts to comply with the main banking standards, many SMEs are often denied access.

1.5.  The Working Group on Trade, Debt and Finance (WGTDF), in accordance with paragraph 36 of the Doha Ministerial Declaration (WT/MIN(01)/DEC/1 of 20 November 2001), is invited to explore concrete solutions that could be implemented to enable firms in LDCs to have easier access to trade finance, especially small and medium-sized enterprises (SMEs) that form the vast majority of importers and exporters.