DRAFT "The potential opportunities and challenges for SMEs in - PDF document

DRAFT "The potential opportunities and challenges for SMEs in the context of the European Trade Policy: Brussels - June 24th, 2014 European Economic and Social Committee V. President Giuseppe Oliviero Let me first thank you for the kind invitation of the Economic and Social Committee and to all the representatives of the EESC SMEs category. The impact of trade policies on micro SMEs is a key issue for the future of the economy of many countries of the European Union even if in several national Member States we register a severe economic recession and difficult recovery. Trade policy, it is a tool of exclusive competence of the European Union. Lisbon Treaties regarding investments, particularly foreign direct investments, can and should be a ground for renewed commitment of the EU and for the effects that investment have on small businesses at European level. UEAPME, in its policy agenda 2014-2019, emphasizes the importance of the revival of the European Union's trade policies for the benefit of SMEs. In this framework, the enhancement of the role of SMEs in Balkan region (Ionian-Adriatic) and the Mediterranean basin urgently need a revived strategy and new vision based on productive and service based partnerships between micro SMEs. What are the challenges and opportunities with EU trade policy for European SMEs and for the wider Italian and Mediterranean economic actors? International trade with third countries is certainly a great opportunity for micro SMEs in Europe but should be certainly improved to enhance the global competitiveness of Europe. However, international trade relations must be based on fair competition and SMEs must be against unfair and illegal conduct of global competitors. The ability to overcome challenges with China, India, Brazil, Russia and others, hoping in absence of military conflicts, will be determined by the capacity that Europe will deliver in terms of concrete industrial policies, coordination of foreign direct investment foreign flows, common and stable energy supply, standardization of products and services SMEs friendly that will be exported in the global markets. We need as well a real repositioning and strengthening of the entire system of SMEs through appropriate EU fiscal policies to strengthen “ made in ” production . Our organization has signed the main international agreements and conventions on working conditions fighting children exploitation: we see the benefits of Free Trade

2 Agreements (as is the case for the Treaty on the transatlantic trade and investment, and as was the case for CETA with Canada ) as of economic integration processes that determine the conditions of economic growth while respecting the right to stable employment. In broad terms, a Trade Agreement is relevant because:  It improves non-tariff barriers;  It harmonizes technical standards for the mutual benefit of consumers;  It improves the quality of food products and beverages (source product, DOP, etc.) against products that "sound" Italian or European and against counterfeiting practices.  It boost procurement markets;  It promotes and make easier mutual recognition of qualifications (including self- employment and non-regulated professions) and the temporary movement of business personnel;  Improve health and safety and environmental protection rules. While a trade agreement creates generally a favorable environment for SMEs in the regions concerned, certain elements should be carefully taken into consideration:  Strengthening of information on the cross sector prospects of trade for SMEs, investment and employment data at the level of industry and global value chains;  Quality information for investment opportunities to both sides SMEs communities;  Research and study of the potential impact on production systems and professional qualifications, mobility of factors included in the trade agreement (see especially young people);  Cooperation activities for SMEs through the establishment of networks and industry partnerships for the exchange of experiences and the development of innovative start-ups, the promotion of business incubators. Italy is a country considered "model" for SMEs and crafts, and despite the current crisis, the Italian experience still could represent an inspiring model for many countries that have a similar productive structure. Through our SMEs representative organization we should increase opportunities for trade, to analyse new markets and promote cultural contamination. Imagine and work at EU level to prepare a business environment where we could exchange and develop new policy proposals. We could get together to enhance the unity of European SMEs and not to highlight the differences among us. In this perspective, the new EU Legislature (VIII Legislature, 2014-2019) will enable a stronger commitment in collaboration with the Intergroup of the European Parliament, the European Commission, the EESC SME category of to determine a new policy framework for EU trade policies focused on SMEs. operating in international markets, as it indicates the Small Business Act (SBA) for over five years.

3 For this reasons, it is necessary that the European Union asks for legally binding SBA for the Member States and put small businesses at the heart of policy action adopting corrective measures to achieve the objectives contained in it . The appreciation of the Euro in recent years has certainly not favoured European exports including those SMEs with a strong propensity to export (in Italy today over 190,000. That's why it becomes important to focus on quality even before the price competitiveness. This has also led to the misconception that the problem was the EURO. Though there are strong populist pressures in this direction, it is now necessary to give a political response able to restore confidence in the domestic markets to the Internal Market and discuss the flexibility of the stability constraints in favor of investment policies geared to boost domestic demand. With a re- launch of EU trade policies and EU industrial policies we would need:  To launch an extraordinary plan for European investment, through the establishment of a Fund devoted to the completion of the network infrastructures of common interest (gas, broadband, logistics and ports).  To ensure easier and equal access for SMEs to bank loans and insurance products, for businesses that want to "do business" in the Internal Market and to export to international markets.  Help SMEs particularly in the resolution of disputes relating to access to markets (procurement, non-tariff barriers, industrial-technological cooperation, language barriers, business intelligence), to solve problems related to import duties and customs procedures.  To make easy to use anti-dumping procedures and combat discriminatory behavior in general to the free exercise of economic activity by SMEs.  Strengthening the European policies designed to encourage the marketing and SME participation in standardization processes of European products and services;  To encourage single SMEs and SMEs groupings to operate in the global markets for the energy sector, infrastructure and related fields of energy efficiency in SMEs, integrating them with the proposals already contained in the European plan for sustainable development to promote the green economy and the quality of the production chains.  To confirm support for the new rules on origin marking as is already the case in the United States, Japan and other realities in the world.  set up a coordinated European plan to combat counterfeiting.  facilitate the matching of skills and competences in internationalization disciplines facilitating partnerships among Universities and SMEs organizations willing to explore new markets and regions. As part of the semester of Italian presidency of the EU, we would like to carry out a workshop to analyze the current agreements with the U.S. (TTIP), main European trading partner and those already concluded with Canada (CETA) to understand how and if the