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Update on the Joint Statement Initiatives: August 2021

This newsletter provides brief updates related to the Joint Statement Initiatives (JSIs) on investment facilitation, electronic commerce, and micro, small, and medium-sized enterprises (MSMEs).

Investment Facilitation

Since the publication of our last newsletter, WTO Members participating in the Structured Discussions held two negotiating meetings and two intersessional meetings. In that context, they have continued work on new proposals as well as on the “Easter Text” (circulated by the coordinator of the structured discussions in mid-April), which is becoming the main basis for negotiations.

According to a summary record of the negotiating session held on June 15-16 (INF/IFD/R/24), participants received an update from the facilitators of the Small/Discussion Groups on “Scope” and on “’Facilitation of the Entry and Temporary Stay of Business Persons for Investment Purposes” (Movement of Business Persons – MBP). Participants discussed revised versions of Section II (“Transparency of investment measures”) as well as of Provision 30 on “Responsible Business Conduct”. Participants also considered text prepared by the coordinator on a possible Most-Favoured Nation (MFN) Treatment provision and continued discussions on a revised version of a proposed provision on ‘Transfers and Payments” submitted by one delegation. On June 15, participants held a dedicated session on implementation, technical assistance, and capacity building.

When they met on July 12 and 13, according to the annotated agenda by the coordinator (INF/IFD/W/35), Members received reports from the facilitators of the Small/Discussion Groups on “Scope” and on MBP. Among other topics, they also discussed draft provisions of the “Easter Text”. These include the “Preamble” and provision 1 on “Objectives”; text under title 31 “Measures against corruption”; provisions 35 on “Dispute Settlement” and provision 36 on “Final Provisions”. Participants also conducted a “stocktaking exercise” aimed at assessing the state of play in the negotiations and planning their activities for the second half of the year up to the WTO’s 12th Ministerial Conference (MC12).

Towards the end of July, the coordinator issued a revised version of the “Easter Text” (INF/IFD/RD/74/Rev.1). This document contains updates to Sections II (“Transparency of investment measures”); III (“Streamlining and speeding up administrative procedures”); IV (“Focal points, domestic regulatory coherence and cross-border cooperation”); and, VI (“Sustainable investment”). It also includes some new definitions in Section I “Scope and general principles”.

At the beginning of August, the coordinator circulated revised text for the preamble, as well as for Articles 1 on Scope, 24 on Cross-Border Cooperation, and 35 on Dispute Settlement.

According to the timetable adopted by participants (INF/IFD/W/29/Rev.2), the next negotiating meetings will be held on September 7-8, October 4-5, November 2-3, and November 24. Intersessional meetings, if needed, will be held on September 23, October 20-21, and November 16-17.

Electronic Commerce

The negotiations under the e-commerce JSI involved two plenary meetings on June 21 and July 22.

During the plenary meeting held on June 21, participating Members initiated discussions over the options for the integration of the outcome of the e-commerce JSI into the WTO legal framework. Ambassador Yamazaki (Japan), co-convenor of the initiative, characterized the discussions on data flows, data localization, and the “legal architecture” as “challenging” and emphasised the need “for participants to give due consideration on how to move forward”. Ambassador George Mina (Australia), co-convenor, also pointed to a number of “key issues” where intensified negotiations and discussions are still needed to narrow down differences and deliver progress; these include data flows, localization, source code, and customs duties on electronic transmissions.

At the plenary meeting held on July 22, facilitators of small group discussions provided updates on their groups’ progress. The co-convenors—Australia, Japan, and Singapore—noted the progress made by participating Members, with “cleaned” articles on spam, electronic signatures and authentication, and e-contracts. Open government data and online consumer protection are “virtually cleaned” with one outstanding issue remaining in both texts, as per their respective small-group leaders’ updates. Concerning other topics, the deliberations of the small group on open internet access are still ongoing and the recently established small group on electronic transactions frameworks had “useful” early discussions, as reported by the UK, and will intensify their work. On the same occasion, participants also initiated discussions on cybersecurity and on electronic availability of trade-related information; discussions on cybersecurity are expected to intensify in the second half of the year.

In other related developments, proposals were submitted by the following members: i) Nigeria on Flow of Information (INF/ECOM/65); ii) Cote d’Ivoire on options for capacity building and technical assistance (INF/ECOM/66), and iii) Brazil and the Republic of Korea on access to online platforms/competition (INF/ECOM/67).

As in previous occasions, participating members held information sessions with thematic experts. In this context, members received presentations on issues related to services market access from the OECD, the Information Technology Industry Council, and the National Foreign Trade Council.

Micro, Small, and Medium-Sized Enterprises

The MSME Informal Working Group (IWG) held two meetings on June 24 and on July 26, respectively. Participating members discussed a draft Ministerial Declaration for MC12, reviewed the implementation of the package of six recommendations and declarations adopted in December 2020, and continued discussions on specific substantive issues based on presentations by the Director General of the World Intellectual Property Organisation (WIPO) as well as on submissions by IWG Members.

Ministerial Declaration on MC12: Members of the IWG moved closer to a final text (INF/MSME/W/33/Rev.2), with only a few remaining brackets around issues still under consideration. At the meeting held on 26 July, the Coordinator of the Group, Ambassador José Luis Cancela (Uruguay), urged members to intensify their consultations and announced he will discuss with all concerned members with the aim to finalize the text for adoption by the IWG at its next meeting on September 24, 2021.

Review of the implementation of the December 2020 Package: The Group reviewed the implementation of the package, which contains a set of voluntary and non-binding recommendations and declarations on various areas. The IWG discussed ways to track actions taken to support their implementation. In connection to that, Uruguay and Brazil provided updates on their preparations for setting up automatic transmission of tariff and trade data to the WTO Integrated Database (IDB). In turn, Côte d’Ivoire indicated that it would submit its proposed roadmap regarding the recommendation on access to trade finance at the September meeting,

Other topics: Members heard presentations on intellectual property rights and innovation in relation to MSMEs by WIPO’s Director General Daren Tang and by the WTO Secretariat. DG Tang introduced the organization’s work to develop intellectual property tools (such as the IP Diagnostic Tool) to support MSMEs’ growth and innovation. The WTO Secretariat informed the Group on how the issue of MSMEs and innovation has been raised in the TRIPs Council since 2014. This includes discussions of national strategies to help MSMEs deal with the complexity of IP systems; technical assistance; and the linkages with e-commerce. Ecuador shared its experience in supporting MSMEs’ innovation in rural areas, in particular in the flower and agribusiness sectors.

Other initiatives: The “Digital Champions for Small Business” initiative (aimed at helping small businesses go digital and increase their participation in international trade) was launched on June 25. Proposals on how to help MSMEs address the difficulties they face with digital trade are to be submitted before September 15. The winning proposals will be announced at MC12.

The original newsletter can be accessed here.

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Embracing new technologies defines a company’s competitiveness on the market today, its efficient operation and its future development. As businesses go remote, many of them transfer their valuable data to the cloud – experts predict up to 60% will be using external provider services by 2022. This allows companies to tune internal communications, process and store larger amounts of data and deliver more value to customers.

The Digital Transformation Officer (DTO) plays the key role in managing the strategic approach necessary to successfully undertake such transformations. Part of that success means managing cyber-risk. In fact, the World Economic Forum, in its guidance to boards of directors, recommends that organizational design supports cybersecurity. The DTO has significant responsibility in making sure this important obligation is met.

Among IT initiatives worldwide, digital transformation is a leading priority.
Among IT initiatives worldwide, digital transformation is a leading priority.
Image: Statista

Investments in digital transformation are projected to reach $1.78 trillion in 2022. In this regard, the DTO plays the key role – their task is to drive the company’s digital transformation by ensuring seamless integration of novel technologies into business operations. This mission is complex and does not only mean introducing new software and hardware. It is about full revision of internal and external processes, training of staff, and, perhaps most crucially, implementing new approaches to security.

The need for the effective cybersecurity is growing in parallel with the increasing digitalization of work processes. Over the past two years, many industries have seen a substantial rise in security incidents.

Cyberattacks are rising across multiple sectors worldwide.
Cyberattacks are rising across multiple sectors worldwide.
Image: ENISA


Unless a DTO pays sufficient attention to security, one incident may disrupt the whole strategy of a company’s transformation and future development, bringing enormous financial and reputational damage. For example, in 2021 the average cost of a data breach has risen to $4.24 million, the highest in the past 17 years.

The main challenge for a DTO is not only to take a company to new heights through digital transformation, but to ensure that transformation is sustainable. This means she or he must ensure continuity of the company’s processes and not let a single cyberattack disrupt operations. With that in mind, cybersecurity becomes an integral part of every digital transformation strategy.

We recommend DTOs consider the following trends:

1. Securing digital assets

Moving to remote work revealed a lot of challenges and new risks – one in five companies were not ready to ensure stable business processes in case of failures in their IT infrastructure. To stay on the safe side, a DTO should manage a detailed inventory of digital assets. This will point out the most important resources that require protection in the first place, be they data, network repositories or workplaces; it may also reveal a wide range of unaccounted assets that could appear during digitalization. BI.ZONE research shows that 60% of data leaks and 85% of network compromises are linked with such assets. These incidents may disrupt the company’s daily operations. To avoid that, the digital assets need to be accounted and secure.

2. Cloud security

Moving to cloud offers companies significant flexibility as well as potential security benefits. Still, there are certain challenges, most commonly when a company becomes dependent on only one cloud service provider, e.g. due to specific data storage formats. In the event of vendor lock-out – if the service provider goes bankrupt, leaves the market, or suffers a cybersecurity incident itself – all the company systems in the cloud will be unavailable. In light of these challenges, the DTO needs to have a deep understanding of how their company is using and securing the cloud. It is important to learn in advance what solutions and formats are utilized by the supplier, as well as their compatibility with formats by other vendors, and to assess the cybersecurity level of this supplier. A DTO can arrange this internally or hire third-party IT experts for help.

3. Developing skills to operate novel technologies securely

Recognizing the human factor in digital transformation may offer significant benefits. Digital transformation requires new skills both from technical and non-technical specialists. Human mistakes and lack of knowledge often lead to cyber-incidents, notwithstanding a company’s investments into expensive security means. BI.ZONE research shows 80% of successful cyberattacks utilize social engineering methods. Therefore, a DTO can reduce the risks of incidents by promoting regular trainings for every employee and top management on how to work safely in the new digital reality.

4. New approaches to cyber-incident management

If any crisis strikes, the company should be ready at all levels to keep the operations going. A DTO should work closely with the company’s Chief Information Security Officer (CISO) to improve and regularly update business continuity and incident response plans, and to promote regular crisis-management trainings for all company members, including the board. Also, it is important for a DTO to be aware of the latest trends, and to test and introduce new methods of incident management. For example, there are managed detection and response services that foresee proactive approach to threats, or threat intelligence for building better security. Smooth introduction of these approaches may require specific experience and supervision of experts.

5. Outsourcing cybersecurity tasks

As digital transformation is an ongoing process, these tasks are complex, require substantial investments and may turn out rather difficult for a company to deal with. Besides, businesses are facing a deficit of qualified personnel – the global shortage for cybersecurity specialists has hit 3 million. Today there are expert organizations that help companies to go through digital transformation securely. They possess the required experience and capacities, the expensive equipment and software, and are aware of the tendencies within the field. They can also help to address cybersecurity issues and avoid common mistakes.

Digital transformation is a challenging but manageable task. It is important for a DTO to work as a team with the CISO, senior leadership, and the board and to stay tuned with the rapid changes in business and technologies. Addressing all the elements in a cross-functional way and prioritizing cybersecurity will facilitate secure digital transformation and ensure your company’s stable development for years to come.

Embracing new technologies defines a company’s competitiveness on the market today, its efficient operation and its future development. As businesses go remote, many of them transfer their valuable data to the cloud – experts predict...


Providing everyone with a transaction account to send and receive money electronically is widely considered the first step towards financial inclusion. For the unbanked, such accounts are seen as the gateway to savings, credit, insurance and a host of other financial activities and services.

Ongoing advances in financial technology (fintech) have introduced new ways to expand access to financial services and the range of services on offer, both for experienced customers and for unbanked people gaining access to transaction accounts for the first time.

Alongside the traditional offerings, some banks have moved to support “open banking” in coordination with third-party online service providers.

Innovations in fields like big data analytics, digital identity and biometrics have ushered in new ways to assess creditworthiness and onboard new customers.

With transaction accounts now offered not just by banks, but also increasingly via mobile money providers and other non-bank platforms, a wide range of players can be involved in enabling payments.

For financial regulators, this raises a range of questions, with the imperative to spur fintech innovation being balanced against the responsibility to manage risks.

Guiding principles

Guiding principles for Payment Aspects of Financial Inclusion (PAFI), released in 2016 and updated in 2020, rest on public and private-sector commitments to provide everyone with access to a transaction account, a suitable supporting legal and regulatory framework, and the necessary financial and digital infrastructure.

Fintech’s rapid rise to prominence in recent years has led to further review of PAFI principles, again led by the World Bank Group and the Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements (BIS). This time, the institutions focused on detailing how the PAFI principles apply to the latest fintech innovations.

The latest report notes fintech’s potential to broaden financial inclusion through initiatives embedded in wider country-level reforms.

Inclusive payment systems depend on close coordination between regulatory authorities and industry players, both to harmonize oversight and establish resilient infrastructure for electronic payments.

The right balance is needed between increasing efficiency and ensuring safety, as well as between enhancing the customer experience and protecting personal data.

The movement towards increasingly digital financial life, industry experts caution, may deepen exclusion for some.

Striking the balance

Source: Bank for International Settlements and World Bank Group (2020): Payment aspects of financial inclusion in the fintech era.

Tracking financial inclusion

To help national authorities apply PAFI guidance, the project provides guidance for diagnostic studies to track transaction account access and use. The toolkit allows comparisons against international benchmarks or within each jurisdiction over time as countries strive for more inclusive payment systems.

Morocco’s inclusion strategy

The PAFI toolkit forms part of a country-level self-assessment for Morocco’s financial sector, says Hakima El Alami, Director of Payment Systems and Instruments Oversight and Financial Inclusion Directorate at Bank Al-Maghrib, the country’s central bank.

Morocco is making fintech solutions part of its national Financial Inclusion Strategy — which aims to give all citizens and businesses fair access to formal financial products and services, she said during the recent Financial Inclusion Global Initiative (FIGI) Symposium.

Albania builds trust

Market access for new entrants also requires careful consideration, so that entities of all sizes enjoy equal opportunities for competition.

“From our perspective as a regulator, we need the market to have as many alternatives as possible, and this comes into force only with tools like a framework, infrastructure, and giving access in a secure and mitigated way,” said Ledia Bregu, Director of Payments in the Bank of Albania’s Accounting and Finance Department.

Bregu cited financial literacy as a key challenge, along with building customer confidence.

“When we speak about innovation and fintech, we need to build trust, so the new or unbanked part of the population has the same understanding and the same trust to use innovative tools to become more financially included.”

Financial inclusion can drive investment and economic development — important considerations for Albania and other relatively small economies in the Western Balkans, she adds. “At the end of the day we see it as a tool for economic growth,” says Bregu.

Mexico seeks network effects

Exponential tech growth means not only new services, but also new types of firms providing services, says Miguel Manuel Díaz, Director of Payment Systems and Infrastructure at Banxico.

This, he believes, has ramped up the pressure on central banks and other regulators.

According to Díaz, five key balances need to be maintained by authorities working to accommodate new types of industry players and services:

  1. Innovation versus risk mitigation;
  2. Economies of scale versus competition;
  3. Efficiency versus system security;
  4. Achieving diversity versus efficient system standardization; and
  5. Privacy versus security requirements.

Díaz sees two key tools to expand access to payment services while mitigating associated risks:

First, a central enabling infrastructure available to everyone. This supports competition among payment services and introduces network effects that help services reach as many people as possible.

Second, in-depth analysis to ensure the consistency of regulations with new market realities. For example, regulators may consider shifting from overseeing different types of institutions towards overseeing the different functions involved in providing a service.

South Africa recognizes limits of current regulation

While financial inclusion is a high priority today, this was not always the case in South Africa, says Pearl Malumane, Senior Analyst in the Policy and Regulation Division at the South African Reserve Bank.

“Over the years, the focus has always been on financial stability, but other regulators and also the South African Reserve Bank have come to realize the importance of financial inclusion,” she says.

“As a result, we have seen the growth of fintechs in South Africa, but we are aware that there are limits in our current regulatory framework. It is very restrictive in terms of what type of payment activities fintechs, or non-banks, are allowed to do.”

But the industry and its regulators need to persist in finding the right way forward, Malumane says. “Where fintech is enabled, it will enhance not only financial inclusion but also competition and innovation in the national payment system and throughout the country,” she says.

Note: This article is based on a panel discussion during the 2021 Financial Inclusion Global Initiative (FIGI) Symposium.
Play the session recording.

Providing everyone with a transaction account to send and receive money electronically is widely considered the first step towards financial inclusion. For the unbanked, such accounts are seen as the gateway to savings, credit, insurance...


“Digital Jobs Albania” is a new World Bank initiative that will help women in Albania gain better access to online work opportunities and connect with the global economy. The initiative will provide intensive 3-month training in digital skills for women aged 16-35 years, empowering them to access online freelancer job opportunities in graphic design, web development and digital marketing.

The emergence of online freelancer job markets is creating new opportunities for Albanians to connect with the global economy. Websites such as Upwork, Fiverr and People Per Hour allow Albanians with the right skills to access online project work commissioned by companies and individuals anywhere in the world, while staying in their local communities.

Women in particular stand to gain. The female labor force participation in Albania is still 14.6 percentage points lower than for males. The gender pay gap remains 6.6 percent, according to 2020 data from the Albanian National Statistical Authority (INSTAT). The emerging online freelancing work model can play an important role in narrowing these gaps. Flexible work hours and the ability to work from home can help more women with the right skills stay in the labor market and gain financial independence.

The Digital Jobs Albania initiative, implemented in partnership with the Government of Albania, Coderstrust (an international digital skills training provider), and EuroPartners Development (a local consulting company), will provide an online training program to equip selected participants with in-demand technical skills. It will also provide mentorship to participants and help them develop the soft skills needed to successfully compete for project work on online freelancer websites.

“This initiative offers an exciting new opportunity for Albanian women to acquire digital skills and join the online economy – a blueprint to inspire future projects in this space,” says Emanuel Salinas, World Bank Country Manager for Albania. “No one can afford to be left behind in the ongoing digital transformation.”

The initiative is part of broader ongoing World Bank engagement in Albania to help the country leverage the economic opportunities associated with digital trade in goods and services.

“Albania has recognized the importance of digital markets as an opportunity for economic development. We have mobilized a team from across the World Bank to support this effort, through this new initiative and others in the future,” says Christoph Ungerer, the World Bank task team leader for the Albania Digital Trade Project.

To learn more about the Digital Jobs Albania initiative and how to participate in it, please visit:

“Digital Jobs Albania” is a new World Bank initiative that will help women in Albania gain better access to online work opportunities and connect with the global economy. The initiative will provide intensive 3-month training...


The funds will support activities that can enable more countries to engage in and benefit from the evolving digital economy.


Switzerland has announced a contribution of $4.4 million (4 million Swiss francs) to UNCTAD’s e-commerce and digital economy programme.

The funds to be provided through the Swiss State Secretariat for Economic Affairs (SECO) will support the programme’s technical cooperation, research and consensus-building activities until 2024.

UNCTAD and Switzerland signed an agreement on 13 September.

“We sincerely thank Switzerland for the generous contribution,” said Isabelle Durant, deputy secretary-general of UNCTAD. “The financial support will enable us to scale up our efforts to foster more inclusive and sustainable development gains from e-commerce and the digital economy for people and businesses in developing countries.”

“Switzerland is proud to contribute to UNCTAD’s programme on e-commerce, which supports the establishment of favourable framework conditions for e-commerce in developing and least developed countries,” said Didier Chambovey, ambassador of the Swiss Permanent Mission to the World Trade Organization and the European Free Trade Association.

“As the COVID-19 pandemic revealed, a robust e-commerce ecosystem is needed to maintain trade flows and mitigate economic and social consequences in times of crisis, particularly in the most vulnerable countries.”

Spreading the benefits of the digital economy

The UNCTAD programme aims to reduce inequality, enable the benefits of digitalization to reach all people and ensure that no one is left behind in the evolving digital economy.

Its activities include, among others, the biennial Digital Economy Report, the eCommerce Week, eTrade for alleTrade for Women and eTrade readiness assessments.

The Swiss contribution will boost the programme’s ability to respond to the growing demand from countries for UNCTAD’s support, not least in view of the COVID-19 pandemic.

The pandemic has accentuated the need to support countries with the lowest levels of readiness to take advantage of the opportunities and mitigate the risks presented by digitalization.

Committed to digitalization

The contribution demonstrates Switzerland’s commitment to strengthening its support to digitalization in line with its International Cooperation Strategy for 2021-24 and its Digital Foreign Policy Strategy 2021-2024, both of which recognize the role of digitalization in meeting current and future development challenges.

The contribution will finance at least three eTrade readiness assessments, which will provide a diagnostic of the state of e-commerce in the countries concerned, covering seven policy areas considered most relevant for e-commerce development. It will also build on a close collaboration with selected eTrade for all partners.

In 2020, Switzerland topped UNCTAD’s Business-to-Consumer E-commerce Index, which ranks 152 countries on their readiness to engage in electronic commerce.

It scored highly across all four dimensions of the index, with 97% of the population using the internet (2019) and 98% of the population aged 15 and older having a bank account (2017).

It also ranked 7th in the world in terms of postal reliability according to the Universal Postal Union, and 5th among the countries included in the index for secure server density, a proxy for online stores.

The funds will support activities that can enable more countries to engage in and benefit from the evolving digital economy.


Switzerland has announced a contribution of $4.4 million (4 million Swiss francs) to UNCTAD’s <a href="" target="_blank"...

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