REPORT OF THE WORKING GROUP ON TRADE, DEBT AND FINANCE (2021)

TO THE GENERAL COUNCIL

DRAFT

1.1.  It will be recalled that the Working Group on Trade, Debt and Finance ("the Working Group") was established at the 4^th Session of the Ministerial Conference in Doha (November 20021). Its mandate is set out in Paragraph 36 of the Doha Ministerial Declaration. Since the 11^th Session of the Ministerial Conference, the Working Group's discussions focused on the topic of trade finance and small and medium-sized enterprises (SMEs), as per the Working Group's recommendations (Document WT/WGTDF/16).

1.2.  In 2021, the Working Group held [three] meetings, on 17 May 2021, 23 September 2021, and [1 November 2021] under the Chairwomanship of H.E. Cheryl Spencer (Jamaica). Discussions focused on a written proposal made by the delegation of Côte d'Ivoire, titled "Questions regarding access to trade finance during COVID-19" (WT/WGTDF/W/98).

1.3.  At the meeting on 17 May 2021, the Working Group welcomed the Director-General, who highlighted the importance of the Working Group's role in tackling issues relating to the nexus of trade, debt and finance, such as trade finance. The main points of the Director-General's address have been summarized in Document WT/WGTDF/M/41. Côte D'Ivoire presented in detail its proposal (WT/WGTDF/W/98/Add.1) for a work program or a road map on trade finance, aimed at facilitating the availability of trade finance, particularly for micro, small and medium-sized enterprises (MSMEs), in developing countries which have been affected by the pandemic. The proposal for a work program contained several "pillars", notably experience-sharing and exchange of information between Members, Secretariat support to Members, and inter-institutional cooperation with other international organizations and from other development finance organizations. Members provided initial reactions. Some Members and group of Members supported the totality of the proposal; other Members could go along with one or the other of the pillars in Côte d'Ivoire's submission, even though some points looked premature. One Member questioned the ability and mandate of the Organization to find concrete solutions to some of the problems raised by the proposal. It was concluded, subject to confirmation in following exchanges between Members, that a Member-driven exchange of information and good practices could be a good starting point. A number of themes had been mentioned for such exchanges between Members, as well as the possibility for information sessions on specific topics.

1.4.  At the meeting on 23 September 2021, Members reverted to the proposal by Côte d'Ivoire, which by then had been revised to incorporate some of the comments made by Members at the May meeting (WT/WGTDF/W/98/Rev.1). One additional "pillar", proposing the organization of information sessions to disseminate in the WTO information from other organizations, was added by Côte d'Ivoire's in its revised submission. Many Members or group of Members highlighted the COVID-19 pandemic had reduced their access to international trade finance, which in turn impeded the recovery of their exports. There seemed to be an acknowledgement of the difficulties encountered during COVID-19, although it was highlighted by one Member that trade finance gaps, which were largely structural, existed before the pandemic. Affected Members nonetheless supported the adoption of a work program including all the "pillars" proposed by Côte d'Ivoire. Other developing countries supported the idea of a work program. Some Members would not endorse all elements of the proposal but were comfortable with one or the other elements. Other Members were open to a work program but sought clarifications on individual proposals. One Member did not support efforts to establish a road map or a work program on trade finance at the WTO, on grounds that the WTO had a limited competence and ability to address trade finance gaps.

1.5.  Without a consensus on a work program and on all aspects of the submission by the proponent, there seemed to be support, though, on moving towards examining what the problems were; towards a Member-driven exchange of information (pillar 1), including about trade finance market developments and facilities, existing options for technical assistance and return of experience on it, etc. International organizations including multilateral development banks might be invited to contribute. One Member requested that there be a process for such an exchange of information and suggested that the proponent and potential contributors spoke directly to this aim. One Member, representing a group of Members, suggested that in view of the looming Ministerial Conference a short draft Declaration should be prepared so that Members of the Working Group have enough time to review it, before a consideration by the General Council. However, one Member insisted that such a draft would have to be presented by a Member, not by the Chair or the Secretariat, while another Member enquired whether there would actually be enough time for the Working Group to consider it.

1.6.   [At the meeting on 1 November, the Working Group examined [and approved] its Annual Report (2021) to the General Council on this basis].

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