Good regulatory practices and the informal economy
The United Kingdom provided an overview of its Better Regulation Framework (BRF), launched in September 2023, which aims to manage the flow of regulation and assess its impact on business. The UK outlined its approach to regulatory impact assessment and stakeholder consultation to ensure MSMEs’ input is included in policy development and review to maintain regulatory effectiveness.
Participants exchanged views on the involvement of MSMEs in trade regulation and legislative processes, the communication of regulatory changes, and whether impact studies have been conducted to assess the effects of new regulations on MSMEs. Discussions also covered the inclusion of good regulatory practices in regional trade agreements, particularly in relation to MSMEs and inclusive trade.
As an outcome of the discussions, the Group agreed to develop a compendium on good regulatory practices for MSMEs.
The session also featured presentations from the International Labour Organization (ILO), the International Trade Centre (ITC), the World Bank and Serviço Brasileiro de Apoio às Micro e Pequenas Empresas (SEBRAE, Brazil) on business informality, focusing on challenges faced by MSMEs in transitioning from the informal to the formal economy. Presentations also covered how informal trade takes place in practice in some regions. The discussion, initiated by a proposal from Mexico, highlighted key barriers to formalization and the role of legal frameworks and international cooperation in addressing these challenges.
Global SME Ministerial Conference
H.E. Dr. Mzukisi Qobo, Ambassador of South Africa, briefed the Group on the upcoming Global SME Ministerial Conference, which will take place in Durban, South Africa, from 22 to 24 July. He highlighted that the conference will provide opportunities to MSMEs to engage with investors, showcase success stories and learn from small businesses that have successfully entered global value chains.
Ms Dorothy Tembo, Deputy Executive Director of International Trade Centre, stated that the conference aims to bring together 47 dedicated ministers on SMEs to exchange best practices and discuss key emerging issues that affect small businesses.
Success stories
In line with the Group’s efforts to strengthen private sector engagement, the meeting featured a presentation from Fairafric, a Ghanaian-German chocolate producer. The company shared insights on overcoming supply chain challenges in West Africa and at a global scale by prioritizing local value addition in Ghanaian communities and investing in capacity building and finding creative solutions. Fairafric operates the first solar-powered organic chocolate factory and utilizes biodegradable packaging, showcasing sustainability in its business model.
Updates
The World Customs Organisation provided an update on the joint report on the integration of MSMEs into Authorized Economic Operator Programmes. The joint report builds on the compendium on the topic and incorporates findings from a 2024 survey. The report is jointly prepared by the WCO, the WTO and the International Chamber of Commerce.
Brunei Darussalam, Paraguay and Ukraine shared updates on the implementation of the December 2020 MSME package of recommendations. They highlighted how their latest trade policy reviews have incorporated information on measures taken to integrate their micro small and medium-sized enterprises into global trade.
The Coordinator, Ambassador Matthew Wilson of Barbados, drew members’ attention to the 2025 Small Business Champions competition. The title of this year’s competition is “Completing the Loop: Helping small businesses contribute to the circular economy”. The competition was launched on 28 January and is open for applications until 28 March.
Preparations for MC14
The Group exchanged views on advancing its work in preparation for the 14th Ministerial Conference (MC14) in March 2026. The Coordinator suggested drawing lessons from past thematic discussions. Other ideas included the development of a handbook based on private sector engagements organized by the Group. Members were encouraged to submit concrete proposals reflecting topics discussed in Group meetings. The Coordinator will consult further with members to determine the best way forward.
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