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WTO and SMEs
What is Needed to Have
a Win-Win Situation?
5 October
WTO Public Forum Geneva 5 October 2007
WTO and SMEs:
What is Needed to Have a Win-Win Situation?
Dirk VANTYGHEM
Eurochambres
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Why are SMEs so important?
SMEs: < 250 employees and < €50m turnover
 23m SMEs in the EU countries
 99.8% of businesses in the EU-25 are SMEs
 Provide 100m jobs: 2/3 of all private sector jobs

Why are SMEs so important?
Country
SMEs
Employment
Canada
99.7%
60%
UK
>99%
44-66%
US
99.7%
50.3%
40% of total economic
activity
China
99%
73%
60% of industrial gross
output
Japan
99%
72% of manuf sector
52% of manuf output
South
Korea
99.7%
71%
47.5% of gross output;
49% of value added
Brazil
99.2%
66.8% of manuf sec
60.8% of manuf output
Chile
99.1%
52.7% of manuf sec
37.1% of manuf output
Africa
>90%
Source: UNCTAD
GDP, Value added
Why are SMEs so important?
Barriers to Internationalisation of
SMEs
 Tariff
barriers
 Lack of IPR protection
 Product standards
 Existing laws and regulations
 Lack of capital or finance
 Lack of support and/or advice
 Cultural and language differences
 Lack of information
Challenges of SMEs
Globalisation
SMEs
Catalyser or Barrier ?
Role of WTO ?
Development
WTO Public Forum Geneva 5 October 2007
WTO and SMEs:
What is Needed to Have a Win-Win Situation?
Laurent MATILE
UNCTAD/WTO
International Trade Centre (ITC)
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WTO Public Forum Geneva 5 October 2007
WTO and SMEs:
What is Needed to Have a Win-Win Situation?
Piero IACOMONI
Monnalisa
Manufacturer, Italy
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WTO Public Forum Geneva 5 October 2007
WTO and SMEs:
What is Needed to Have a Win-Win Situation?
Peter BERNERT
Brieftaube
Retailer, Austria
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WTO Public Forum Geneva 5 October 2007
WTO and SMEs:
What is Needed to Have a Win-Win Situation?
José María CERVERA
Barcelona Chamber of Commerce
Spain
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WTO Public Forum Geneva 5 October 2007
WTO and SMEs:
What is Needed to Have a Win-Win Situation?
Kees KEIJZER
European Commission
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WTO FORUM 5 OCTOBER
PANEL "WTO AND SMES"
WTO rules:in the interest of SMEs
A rules based system is in the interest of smaller companies,
rather than large ones
The GATT/WTO system has led to increased possibilities
to export for SMEs:





Lower (and bound) tariffs for goods
Guaranteed access conditions for services, including right of
establishment, cross border and movement of service providers and
consumers
Protection of intellectual property
Disciplines for subsidies and trade defence instruments
Effective system of dispute settlement
What has the EC done for its SMEs?
Market Access Strategy:

Market Access Database:
Gives information on all trade barriers affecting exports. Interactive:
gives SMEs possibility to flag problems in third country markets

Applied tariffs database:
Provides information on duties and taxes applicable to goods imported
into almost one hundred non-EU countries

Trade Barriers Regulation
A legal instrument that gives the right to companies from the EU to lodge
a complaint with the European Commission who then investigate and
determine whether there is evidence of a violation of international trade
rules which has resulted in either adverse trade effects or injury.
What has the EC done for SMEs
from developing countries?

Export Helpdesk for Developing Countries and Exporters Guide to
Import Formalities in the EU
On line service with information on all import requirements in the
EU (tariffs, documents, rules of origin, taxes) as well as a "market
place" to do business

Trade-Related Assistance
Since the launch of the Doha Round, the EC has allocated around
3.3 billion euros on trade policy/regulations, trade development and
private sector support in developing countries.
What more can be done in WTO to help SMEs? (1)
Trade Facilitation
Reduction and simplification of import, export, transit and customs
procedures.
Examples of measures under negotiation:







publish and make available information
time periods for consultation and comments before new rules come
into force
advance rulings
easier procedures for release and clearance of goods
appeals procedures
limits to fees and charges applied
easier transit
What more can be done in WTO to help SMEs? (2)
Proposed procedures for the Facilitation of Solutions to NTBs

SME's want quick, pragmatic solutions to concrete trading problems.
Dispute settlement is not always an option. WTO regular bodies are not
well-suited for problem solving

Procedure should be simple, conciliatory and expedient, with welldefined steps and tight time lines

It should involve a facilitator acting as a mediator giving non-binding
recommendations


Any WTO member country facing an NTB in another country could file
a properly substantiated complaint requesting the WTO to launch a
procedure
The facilitator would help clarify the issue, lead the consultations and
make recommendations on possible (non-binding) solutions
WTO Public Forum Geneva 5 October 2007
WTO and SMEs:
What is Needed to Have a Win-Win Situation?
Questions?
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WTO Public Forum Geneva 5 October 2007
WTO and SMEs:
What is Needed to Have a Win-Win Situation?
Ralph KAMPHÖNER
EuroCommerce
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Thank you !
Merci !
Grácias !
5 October