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

TO THE GENERAL COUNCIL

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 2001). 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 development finance organizations. Members provided initial reactions. Some Members and groups of Members supported the totality of the proposal; other Members expressed initial support on learning more about one or more of the pillars in Côte d'Ivoire's submission, even though some points looked premature. A Member requested more detailed information on specific proposals and indicated an interest in exploring them further with the proponent while emphasizing that any work be proposed by and agreed to by Members and fully within the mandate and competence of the Working Group and the WTO, while respecting the mandates and competencies of other international organizations and forums. It was concluded, subject to confirmation in following exchanges between Members, that the proponent would produce a revised document, taking into account the views shared during the meeting. 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 groups 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 a Member that trade finance gaps, which are largely structural, existed before the pandemic. A number of 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 more elements. Other Members were open to a work program but sought clarifications on individual proposals. A Member expressed concern with calls to establish a road map or a work program on trade finance at the WTO, noting that the WTO is not a trade financing organization and cautioning against encroaching on or duplicating work conducted by multilateral development banks. However, it expressed willingness to further explore in more detail several elements of the proposal with the aim of finding areas of consensus.