This paper discusses trade barriers that SMEs are likely to encounter in export markets and available policy tools aimed at their reduction or elimination. Drawing on recent work in the Trade Directorate and elsewhere, key types of barriers are identified based on a review of business surveys and other studies recently undertaken. The paper also explores how governments deal with trade barriers and how SME participation in the trade policy process can be facilitated. As far as barriers in export markets are concerned, firms, large and small, continue to face import tariffs. Non-tariff barriers matter equally, if not more, with customs procedures and domestic regulations emerging as widely noted impediments to trade and less direct and visible procedural barriers also playing a role. Due to their size SMEs are in a vulnerable position in relation to trade barrier impact. Overcoming trade barriers requires significant investment both in time and resources, which can constrain SME participation in the trade policy process. National experiences with consultation schemes and other support programmes that help exporting SMEs diagnose trade barriers or present the opportunity to raise issues, related to trade barriers, directly with policymakers suggest ways for enhancing SME participation in the policy process. Business and trade associations also can give voice to SME interests with governments at home and abroad. This paper offers recommendations on how governments can take SME concerns better into account and support the internationalisation of their business activities.
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