Coordinated Global Response Key to MSMEs’ Post-pandemic Economic Recovery

1.Key concerns

On October 22, 2021, the WTO Deputy Director-General (DDG) Zhang Xiangchen delivered a speech entitled Coordinated Global Response Key to Mitigate the Impact of the COVID-19 Pandemic on Micro, Small and Medium-sized Enterprises (MSMEs)’ Post-pandemic Economic Recovery at a workshop organized by the WTO Chairs Programme at the University of Mauritius. DDG Zhang highlighted the importance of targeted policies and a coordinated global response to mitigate the impact of the COVID-19 pandemic on MSMEs. And he called on WTO members to foster a global trade environment that supports and enhances MSMEs’ involvement in international trade.

DDG Zhang first introduced the negative impact of the COVID-19 pandemic on MSMEs. MSMEs are the backbone of many economies. According to the WTO's research, MSMEs represent 95 per cent of companies across the globe and account for 60 per cent of the world's total employment. They contribute to around 35 per cent of GDP in developing countries and around 50 per cent in developed countries. Meanwhile, MSMEs are among those that have been hit hardest by the COVID-19 pandemic. A study by the UN International Trade Centre shows that 60% of micro and 57% of small businesses have been strongly affected by the pandemic, compared with 43% of large firms.

Therefore, DDG Zhang summarized the current efforts WTO have made on this issue and called on the international community to work together to help MSMEs overcome the current crisis.

WTO’s MSMEs Informal Working Group has recently finalized its draft ministerial declaration. Some WTO Members, including members of the MSME Group, also issued a “Statement on highlighting the importance of MSMEs in the time of COVID-19” in May 2020. DDG Zhang called for the international community's joint efforts to help MSMEs overcome the current crisis and build resilience to future shocks. In the end, DDG Zhang encouraged WTO Members to foster a transparent, inclusive, non-discriminatory, and predictable global trade environment that supports and enhances MSMEs' involvement in international trade.

2. Briefing on COVID-19 Pandemic

According to WHO statistics, calculated numbers of confirmed COVID-19 cases and deaths reached 243,260,214 and 4,941,039 by October 25, 2021. The U.S., the UK, Russia, Turkey, and Ukraine were the five countries (regions) with the highest number of new confirmed cases in the past seven days. The U.S., Russia, Ukraine, Romania, and India were the five countries (regions) with the highest number of new deaths in the past seven days.

 https://covid19.who.int/

The 13th World Health Summit officially opened and UN Secretary-General António Guterres called for an equitable distribution of COVID-19 vaccines. Statistics from Our World In Data, an online research site of the University of Oxford, presented that 6,869,244,604 doses had been administered by October 24, 2021. On October 24 local time, the 13th World Health Summit opened in Berlin. UN Secretary-General António Guterres decried vaccine nationalism and hoarding and called for an equitable distribution of COVID-19 vaccines in his speech. Mr Guterres warned that the unequal distribution of COVID-19 vaccines means more deaths, more shattered health system and more economic misery. WHO Director-General Tedros Adhanom Ghebreyesus said that the pandemic can be controlled but it requires far greater supply and sharing of vaccines by governments and manufacturers driven by a commitment to equity and solidarity. He called for G20’s launching of a donation plan for COVID-19 vaccination to deliver vaccines to the most vulnerable countries (regions).

 https://ourworldindata.org/covid-vaccinations

In terms of the restrictions taken by countries(regions), we will focus on vaccination policies on different continents. In America, the United States announced a new rule on October 25 that will go into effect for international travelers on November 8. Under the new rule, foreign national air travelers that have been fully vaccinated and show a negative test taken within 72 hours of traveling are allowed to enter the United States. In Europe, on October 25 local time, Russian President Vladimir Putin instructed relevant departments to provide two days of paid vacation to those vaccinated. In Oceania, the Ministry of Foreign Affairs of Australia announced  Guidance on foreign vaccination certificates in which Sinovac vaccine of China is among the approved and recognised vaccines. In Asia, as of October 25, over 70% of the population have been fully vaccinated in Japan. The Philippines will prepare for testing the vaccination on mixing vaccine brands this week or in early November. More than 3,300 Chinese citizens in Sri Lanka were vaccinated with the COVID-19 booster doses from October 22 to 25.