implementation of the mc13 decision on

the work programme on small economies

The following communication, dated 2 July 2024, is being circulated at the request of the delegation of Guatemala on behalf of the Group of Small, Vulnerable Economies (SVEs).

_______________

1  Introduction

1.1.  At the Thirteenth WTO Ministerial Conference (MC13) held in Abu Dhabi from 26 February to 2 March 2024, a Ministerial Decision on the Work Programme on Small Economies was adopted (WT/MIN(24)/33 – WT/L/1188).

1.2.  In this Ministerial Decision, Ministers instructed the WTO Secretariat to provide relevant information and factual analysis for discussion among Members in the CTD's Dedicated Session on Small Economies, including through cooperating with relevant international organizations, inter alia, in the areas identified in item k of paragraph 2 of the Work Programme on Small Economies and, in particular, on:

1.       Challenges and opportunities for small economies in using e-commerce and digital ecosystem to drive competitiveness;

2.            Addressing the importance of resilient, accessible, open, reliable and transparent supply chains for small economies given food security issues, and the impact of non-tariff measures on trade costs;

3.            Exploring with other relevant WTO bodies how to integrate trade related climate change adaptation and mitigation policies into the trade policies of small economies.

1.3.   In the implementation of past Ministerial Decisions on the Work Programme on Small Economies, Secretariat background documents were prepared on the topics given by Ministers for discussion in the CTD's Dedicated Session on Small Economies. Accordingly, for the implementation of the MC13 Decision on the Work Programme on Small Economies, the SVE Group would like to once again suggest that background documents be prepared by the Secretariat on the above three topics. Considering that there are three different topics and that it is intended to have specific discussions on these topics, the SVE group has identified the specific information, detailed in this communication, needed for the discussions within the CTD's dedicated session.

1.4.  In addition, given that the SVE group is seeking concrete recommendations, it is considered that the policy brief-focused papers modality can contribute correctly and efficiently to the needs and objectives of our countries. This approach would allow Members to have more in-depth discussions and exchange of experiences on the information provided by the Secretariat and other relevant international organizations.   

1.5.  The SVE Group would like to propose the following outlines for the Secretariat background documents on the three assigned topics.

2  proposed outline for topic 1: Challenges and opportunities for small economies in using e-commerce and digital ecosystem to drive competitiveness

Part 1: The potential of e-commerce to boost growth in small economies: In this introductory section we hope to understand, including through data, how digital trade can help small economies to grow. This part will also clarify terms such as e-commerce and digital trade, drawing on existing definitions in literature from UNCTAD and WTO.

Part 2: Digital connectivity for development and digital transformation: This chapter will set out the different aspects of the digital economy that would need attention to push growth and competitiveness, inter alia, hard and soft infrastructure, internet access and digital skills, and how these can promote digital trade, including in the tourism sector.

Part 3: The regulatory ecosystem of e-commerce for competitiveness: an elaboration of the domestic regulation necessary for countries to benefit from e-commerce.

Part 4: Analysis of the WTO moratorium on customs duties on electronic transmissions for small economies.

Part 5: Recommendations for government policies regarding digital trade and their implementation.

Part 6: Case studies of some small economies.^[1]

3   proposed outline for topic 2: Addressing the importance of resilient, accessible, open, reliable and transparent supply chains for small economies given food security issues, and the impact of non-tariff measures on trade costs

Part 1: Defining the supply chains in small economies: mapping of the various global and regional supply chain sectors that small economies are involved in and an examination of the decentralization and fragmentation of global value chains and the conditions which prevent greater access to and equity in the participation by small economies in global supply and value chains.

Part 2: Vulnerability and resilience in supply chains: Analysis of the vulnerability of supply chains and what measures could help build more resilient supply chains in small economies.[2]

Part 3: Food security issues: How to overcome significant disruptions in food systems, taking into account the report and recommendations of the food security work programme approved by Members in G/AG/38.

Part 4: Analysis of the impact of non-tariff measures on trade costs related to supply chains for small economies.

4  proposed outline for topic 3: Exploring with other relevant WTO bodies how to integrate trade related climate change adaptation and mitigation policies into the trade policies of small economies

Part 1: Sustainable development benefits to small economies of sustainable agriculture, tourism and fisheries, including by improving our understanding on how trade related aspects could be integrated into national determined contributions in support of these sectors to deliver both climate and development goals.

Part 2: Technical assistance, capacity building, and technology transfer regarding the trade related needs identified by small economies in climate, particularly those related to adaptation.

Part 3: Links between trade, technology and climate to explore the interrelation with a focus on environmentally sustainable technologies that are cutting-edge and contribute to small economies' growth and trade expansion.

Part 4: Breaking silos to synergies on the agenda for trade, climate and development: Mapping potential areas of cooperation to foster open an inclusive dialogue in the ongoing work of various WTO bodies and other initiatives on how trade and trade climate policies, including on market access, regulations and trade facilitation can contribute to small economies' integration in the trade system, in particular their SMEs.

__________