1. Marion Jansen, Chief Economist, ITC
Bruegel, Brussels, November 9, 2016

2. SME Competitiveness Outlook 2016
Focus on standards and regulations
Comprehensive analysis
Global thought leader insights
Case studies
New econometric findings
Guidance for SME managers
5 Point Action Plan for Policy Makers
How to think strategically about standards: Regional snapshots

3. Why is this report relevant for decision makers in the EU
Anything grown, produced or trade is subject to standards
Competitiveness of EU SMEs matters for distribution of gains from trade within the EU:
NTMs EU exporters face matter: SMECO NTM findings are relevant
Consumer protection, environmental and social sustainability matter for EU consumers:
5 point action plan in SME Competitiveness Outlook (SMECO) 2016 is relevant
SMECO regional snapshots and country profiles provide info on where to invest and from where to source

4. EU exporters face challenges

5. Standards are not only set in industrialized countries

6. Regulatory burdens hit small firms twice as hard as large firms

7. Burdens are mainly linked to procedural obstacles

8. Importers face challenges when sourcing from the EU
Quality of national technical infrastructure matters

9. EU consumers demand “good” trade

10. Standards are in demand
… but meeting standards is costly …

11. Private versus and governmental standards
Exploit synergies between the two

12. Being part of an IVC reduces costs for SMEs
But only the most competitive SMEs manage to enter IVCs

13. Meeting the standard to trade
EU SMEs
Sourcing from partner countries
EU regional integration
Role for EU technical assistance???

14. The EU and the 5 point action plan
4. Strengthen Governance (free flow of goods within single market)
Joint EU standard setting:
Through CEN and CENELEC
EU national standard setters represented in EU bodies
Mutual recognition for products not subject to EU harmonisation legislation within single market

15. Where to invest and from where to source (examples)

16. Asia Pacific Still unexploited export potential in IT and electronics
Chemicals are promising avenue for export diversification (21% of the top 200 products are in this sector)
International management and quality standards well adopted in large economies like China and India, but several other economies in region are lagging behind
Shift from electronics/IT to chemicals will imply shift from compatibility standards to consumer protection standards.

17. Sri Lanka
Still unexploited export potential in tea, textiles and rubber-based products
Processed food and chemicals are promising avenues for export diversification
International management standards relatively well adopted. Immediate business environment strong regarding regulatory aspects.
Processed food and chemicals are among most regulated sectors. Role of consumer protection standards potentially important in future.

18. More on: http://www.intracen.org/smeoutlook/
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