wto and smes what is needed to have a win-win situation? 5 october

WTO and SMEsWTO and SMEsWhat is Needed to Have What is Needed to Have

a Win-Win Situation?a Win-Win Situation?

www.eurochambres.eu www.eurocommerce.be

5 October5 October

Dirk VANTYGHEMDirk VANTYGHEMEurochambresEurochambres


WTO Public Forum Geneva 5 October 2007WTO Public Forum Geneva 5 October 2007

WTO and SMEs: WTO and SMEs: What is Needed to Have a Win-Win Situation?What is Needed to Have a Win-Win Situation?

Why are SMEs so important?Why are SMEs so important? SMEs: < 250 employees and < SMEs: < 250 employees and < €50m turnover€50m turnover 23m SMEs in the EU countries23m SMEs in the EU countries 99.8% of businesses in the EU-25 are SMEs99.8% of businesses in the EU-25 are SMEs Provide 100m jobs: 2/3 of all private sector jobsProvide 100m jobs: 2/3 of all private sector jobs

Why are SMEs so important?Why are SMEs so important?CountryCountry SMEsSMEs EmploymentEmployment GDP, Value addedGDP, Value added

CanadaCanada 99.7%99.7% 60%60%

UKUK >99%>99% 44-66%44-66%

USUS 99.7%99.7% 50.3%50.3% 40% of total economic 40% of total economic activityactivity

ChinaChina 99%99% 73%73% 60% of industrial gross 60% of industrial gross outputoutput

JapanJapan 99%99% 72% of manuf sector72% of manuf sector 52% of manuf output52% of manuf output

South South KoreaKorea

99.7%99.7% 71%71% 47.5% of gross output; 47.5% of gross output; 49% of value added49% of value added

BrazilBrazil 99.2%99.2% 66.8% of manuf sec66.8% of manuf sec 60.8% of manuf output60.8% of manuf output

ChileChile 99.1%99.1% 52.7% of manuf sec52.7% of manuf sec 37.1% of manuf output37.1% of manuf output

AfricaAfrica >90%>90%Source: UNCTAD

Why are SMEs so important?Why are SMEs so important?

Barriers to Internationalisation of Barriers to Internationalisation of SMEsSMEs

Tariff barriersTariff barriers Lack of IPR protectionLack of IPR protection Product standardsProduct standards Existing laws and regulationsExisting laws and regulations Lack of capital or financeLack of capital or finance Lack of support and/or adviceLack of support and/or advice Cultural and language differencesCultural and language differences Lack of informationLack of information

Challenges of SMEsChallenges of SMEs

SMEsSMEs DevelopmentDevelopmentGlobalisationGlobalisation

Catalyser or Barrier ?

Role of WTO ?Role of WTO ?

Laurent MATILELaurent MATILEUNCTAD/WTO UNCTAD/WTO

International Trade Centre (ITC)International Trade Centre (ITC)




Piero IACOMONIPiero IACOMONIMonnalisaMonnalisa

Manufacturer, ItalyManufacturer, Italy




Peter BERNERTPeter BERNERTBrieftaubeBrieftaube

Retailer, AustriaRetailer, Austria




José María CERVERAJosé María CERVERABarcelona Chamber of CommerceBarcelona Chamber of Commerce

SpainSpain




Kees KEIJZERKees KEIJZEREuropean CommissionEuropean Commission




WTO FORUM 5 OCTOBER WTO FORUM 5 OCTOBER

PANEL "WTO AND SMES"PANEL "WTO AND SMES"

WTO rules:in the interest of SMEsWTO rules:in the interest of SMEs

A rules based system is in the interest of smaller companies,A rules based system is in the interest of smaller companies,rather than large onesrather than large ones

The GATT/WTO system has led to increased possibilitiesThe GATT/WTO system has led to increased possibilitiesto export for SMEs:to export for SMEs:

Lower (and bound) tariffs for goodsLower (and bound) tariffs for goods Guaranteed access conditions for services, including right Guaranteed access conditions for services, including right

of establishment, cross border and movement of service of establishment, cross border and movement of service providers and consumersproviders and consumers

Protection of intellectual propertyProtection of intellectual property Disciplines for subsidies and trade defence instrumentsDisciplines for subsidies and trade defence instruments Effective system of dispute settlementEffective system of dispute settlement

What has the EC done for its SMEs?What has the EC done for its SMEs?

Market Access Strategy:Market Access Strategy:

Market Access Database:Market Access Database:

Gives information on all trade barriers affecting exports. Interactive: Gives information on all trade barriers affecting exports. Interactive: gives SMEs possibility to flag problems in third country marketsgives SMEs possibility to flag problems in third country markets

Applied tariffs database:Applied tariffs database:

Provides information on duties and taxes applicable to goods Provides information on duties and taxes applicable to goods imported into almost one hundred non-EU countriesimported into almost one hundred non-EU countries

Trade Barriers RegulationTrade Barriers Regulation

A legal instrument that gives the right to companies from the EU to A legal instrument that gives the right to companies from the EU to lodge a complaint with the European Commission who then lodge a complaint with the European Commission who then investigate and determine whether there is evidence of a violation of investigate and determine whether there is evidence of a violation of international trade rules which has resulted in either adverse trade international trade rules which has resulted in either adverse trade effects or injury.effects or injury.

What has the EC done for SMEsWhat has the EC done for SMEsfrom developing countries?from developing countries?

Export Helpdesk for Developing Countries and Exporters Export Helpdesk for Developing Countries and Exporters Guide to Import Formalities in the EUGuide to Import Formalities in the EU

On line service with information on all import requirements On line service with information on all import requirements in the EU (tariffs, documents, rules of origin, taxes) as well in the EU (tariffs, documents, rules of origin, taxes) as well as a "market place" to do businessas a "market place" to do business

Trade-Related AssistanceTrade-Related Assistance

Since the launch of the Doha Round, the EC has allocated Since the launch of the Doha Round, the EC has allocated around 3.3 billion euros on trade policy/regulations, trade around 3.3 billion euros on trade policy/regulations, trade development and private sector support in developing development and private sector support in developing countries.countries.

What more can be done in WTO to help SMEs? What more can be done in WTO to help SMEs? (1)(1)

Trade FacilitationTrade Facilitation

Reduction and simplification of import, export, transit and Reduction and simplification of import, export, transit and customscustoms

procedures.procedures.

Examples of measures under negotiation:Examples of measures under negotiation:

publish and make available informationpublish and make available information time periods for consultation and comments before new rules time periods for consultation and comments before new rules

come into forcecome into force advance rulingsadvance rulings easier procedures for release and clearance of goodseasier procedures for release and clearance of goods appeals proceduresappeals procedures limits to fees and charges appliedlimits to fees and charges applied easier transiteasier transit

What more can be done in WTO to help SMEs? What more can be done in WTO to help SMEs? (2)(2)

Proposed procedures for the Facilitation of Solutions to NTBsProposed procedures for the Facilitation of Solutions to NTBs

SME's want quick, pragmatic solutions to concrete trading SME's want quick, pragmatic solutions to concrete trading problems. Dispute settlement is not always an option. WTO problems. Dispute settlement is not always an option. WTO regular bodies are not well-suited for problem solvingregular bodies are not well-suited for problem solving

Procedure should be simple, conciliatory and expedient, with Procedure should be simple, conciliatory and expedient, with well-defined steps and tight time lineswell-defined steps and tight time lines

It should involve a facilitator acting as a mediator giving non-It should involve a facilitator acting as a mediator giving non-binding recommendationsbinding recommendations

Any WTO member country facing an NTB in another country Any WTO member country facing an NTB in another country could file a properly substantiated complaint requesting the could file a properly substantiated complaint requesting the WTO to launch a procedureWTO to launch a procedure

The facilitator would help clarify the issue, lead the The facilitator would help clarify the issue, lead the consultations and make recommendations on possible (non-consultations and make recommendations on possible (non-binding) solutionsbinding) solutions

Questions?Questions?




Ralph KAMPHÖNERRalph KAMPHÖNEREuroCommerceEuroCommerce




Thank you !Thank you !Merci !Merci !

Grácias !Grácias !


5 October5 October

wto and smes what is needed to have a win-win situation? 5 october

Documents

smes slide

smes possibility

turnover smes

wto forum

wto rules

wto public forum geneva

panel wto

role of wto