Phl advances MSME agenda in WTO

The Philippine agenda calling for greater participation of micro, small and medium enterprises (MSME) in global trade has gained significant strides in the World Trade Organization (WTO), Trade Secretary Ramon Lopez said.

“The desire to make globalization more inclusive and sustainable gave traction to discussing MSMEs in the WTO,” said Lopez, who heads the Philippine delegation in the 11th WTO Ministerial Conference in Argentina.

“With the Philippines as one of the main proponents, MSMEs chapter has gained more support in this multilateral trade body,” he added.

Lopez said while the topic has not yet gained full consensus or unanimous support from 164 countries, the group called “Friends of MSMEs” gained more supporters.

From just about 19 supporters about two years ago, the group now has 87 countries as part of the Friends of MSMEs, he said.

“Just in this concluded round, it gained five new supporters, as we tried to meet at the sidelines more countries like Laos and Myanmar,” he said.

Lopez said the goal, which the Philippines has been strongly advocating, is to make MSMEs more globally competitive and supported so it can participate in the global trade.

He said an informal working group would be set up to develop a work program for the sector in the WTO.

“It shall aim to address issues related to access to information, more stable and predictable business environment, lowering of transaction cost through better trade facilitation, shipping, logistics, procedures, origins, promotions, multilateral cooperation on trade finance, technical assistance and capacity building for MSMEs,” Lopez said.

With 99 percent of establishments in the country classified as MSMEs, the Philippines has placed great importance on their role to the economy as well as in promoting inclusive growth.

Lopez earlier said the challenge of including MSMEs in trade is not only important but also urgent.

“If we are to make globalization truly inclusive, as emphasized by President Duterte, we have to ensure that MSMEs are empowered and upgraded to be enable them to participate in the global value chain. Moreover, bigger economies are enjoined to provide better market access for MSMEs to maximize the potential gains from globalization. Our President wants globalization that will have only winners, where no one will be left behind,” Lopez said.