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

Dirk VANTYGHEM Eurochambres WTO Public Forum Geneva 5 October 2007 WTO and SMEs: What is Needed to Have a Win-Win Situation?

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

Why are SMEs so important? CountrySMEsEmployment GDP, Value added Canada99.7%60% UK>99%44-66% US99.7%50.3% 40% of total economic activity China99%73% 60% of industrial gross output Japan99% 72% of manuf sector 52% of manuf output South Korea 99.7%71% 47.5% of gross output; 49% of value added Brazil99.2% 66.8% of manuf sec 60.8% of manuf output Chile99.1% 52.7% of manuf sec 37.1% of manuf output Africa>90% Source: UNCTAD

Why are SMEs so important?

Barriers to Internationalisation of SMEs Tariff barriers Tariff barriers Lack of IPR protection Lack of IPR protection Product standards Product standards Existing laws and regulations Existing laws and regulations Lack of capital or finance Lack of capital or finance Lack of support and/or advice Lack of support and/or advice Cultural and language differences Cultural and language differences Lack of information Lack of information

Challenges of SMEs SMEsDevelopment Globalisation Catalyser or Barrier ? Role of WTO ?

Laurent MATILE UNCTAD/WTO International Trade Centre (ITC) WTO Public Forum Geneva 5 October 2007 WTO and SMEs: What is Needed to Have a Win-Win Situation?

Piero IACOMONI Monnalisa Manufacturer, Italy WTO Public Forum Geneva 5 October 2007 WTO and SMEs: What is Needed to Have a Win-Win Situation?

Peter BERNERT Brieftaube Retailer, Austria 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 WTO Public Forum Geneva 5 October 2007 WTO and SMEs: What is Needed to Have a Win-Win Situation?

Kees KEIJZER European Commission WTO Public Forum Geneva 5 October 2007 WTO and SMEs: What is Needed to Have a Win-Win Situation?

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 Lower (and bound) tariffs for goods Guaranteed access conditions for services, including right of establishment, cross border and movement of service providers and consumers Guaranteed access conditions for services, including right of establishment, cross border and movement of service providers and consumers Protection of intellectual property Protection of intellectual property Disciplines for subsidies and trade defence instruments Disciplines for subsidies and trade defence instruments Effective system of dispute settlement 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 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 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. 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 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. 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 publish and make available information time periods for consultation and comments before new rules come into force time periods for consultation and comments before new rules come into force advance rulings advance rulings easier procedures for release and clearance of goods easier procedures for release and clearance of goods appeals procedures appeals procedures limits to fees and charges applied limits to fees and charges applied easier transit 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 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 well- defined steps and tight time lines Procedure should be simple, conciliatory and expedient, with well- defined steps and tight time lines It should involve a facilitator acting as a mediator giving non-binding recommendations 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 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 The facilitator would help clarify the issue, lead the consultations and make recommendations on possible (non-binding) solutions

Questions? WTO Public Forum Geneva 5 October 2007 WTO and SMEs: What is Needed to Have a Win-Win Situation?

Ralph KAMPHÖNER EuroCommerce WTO Public Forum Geneva 5 October 2007 WTO and SMEs: What is Needed to Have a Win-Win Situation?

Thank you ! Merci ! Grácias ! October