World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Opportunities for SMEs to play larger role in global chains

Opportunities for SMEs to play larger role in global value chains

Issued by the APEC Policy Support Unit


Qingdao, China, 11 May 2014 - Policies to increase opportunities for SMEs to play an important role in global value chains were presented at the APEC Committee on Trade and Investment Meeting by the APEC Policy Support Unit on Saturday in Qingdao, China.

Global value chains play an important role in the international trading system. Today, around 80 percent of world trade is conducted through networks of global value chains. These value chains are comprised of a multitude of small and medium-sized enterprises (SMEs) dispersed across a large geographical area.

“In recent years, we have seen the simultaneous ‘integration of trade’ and ‘disintegration of production’ as multinationals increasingly rely on a variety of SME suppliers throughout the region during their production process,” said Dr Alan Bollard, Executive Director of the APEC Secretariat.

In global value chains, SMEs are often suppliers providing intermediate inputs such as components and parts, and act as subcontractors several levels down from the ultimate buyer.


“Since the Global Financial Crisis, global value chains have been undergoing structural changes, including consolidation by multinationals into a few large suppliers as well as the rise of e-commerce enabling further expansion of global value chains,” explained John Larkin, Chair of the Committee on Trade and Investment.

These changes offer both opportunities and challenges for SMEs to increase their participation in global value chains. Under the direction of the APEC SME Working Group, the APEC Policy Support Unit conducted an analysis on the prospects for SMEs to engage in global value chains in five main sectors, including agriculture, food processing, automobiles, electronics and handicraft sectors.

“For example, the analysis shows that SMEs in developed and newly industrialized economies have a higher potential to participate more fully in global value chains in the agriculture and electronics sectors,” said Zhang Yuhua, Analyst at the APEC Policy Support Unit.

“For SMEs in developing economies, the electronics and handicraft sectors offer better opportunities for capturing a larger role in global value chains,” added Ms Zhang. In addition, she recommended that APEC member economies could conduct similar analyses on an industry or product level to identify potential opportunities to integrate domestic SMEs into global value chains.

The report offers some policy principles and best practices for APEC member economies to help SMEs in these sectors expand their presence in global value chains.

“To help SMEs meet standards and obtain certificates, APEC member economies could harmonize standards and conformance procedures, set up public certification systems to reduce the burden on SMEs to obtain certificates; and provide training and technical assistance on qualification and certification processes,” explained Dr Denis Hew, Director of the APEC Policy Support Unit.

Other policy recommendations include strengthening the financial soundness of SMEs by promoting supply chain financing and providing financial skills training as well as enhancing production capacity through fostering collaboration and clustering of SMEs.

For more information see “Integrating SMEs into Global Value Chains: Policy Principles and Best Practices Issues Paper No. 6” by the APEC Policy Support Unit.

Ends

© Scoop Media

 
 
 
 
 
World Headlines

 

Ebola Cases Reaching Record Low

Highly contaminated waste is removed from an Ebola Treatment Unit and carried with caution to a disposal area, where it will be fed into an incinerator that burns it into ashes. Photo: WHO/R. Sørensen More>>

South Sudan: Pervasive Violence Against Healthcare

Juba, South Sudan, July 1, 2014 - Violence in hospitals and the destruction of medical facilities are denying medical services to many of South Sudan 's most vulnerable people, Médecins Sans Frontières (MSF) said today in a report, South Sudan Conflict: ... More>>

ALSO:

  • UN News - UNESCO chief denounces killing of journalists in South Sudan
  • Increasing Demand For Refined Products Will Increase Prices

    In last week's article I posted a chart from the International Energy Agency'srecent Oil Market Report that shows global demand for refined products catching up to supply by the 3rd quarter of this year. My opinion is that all of the analysts who are now ... More>>

    ALSO:

    Terrorist Attack On Hotel In Libyan Capital

    27 January 2015 – The United Nations Security Council today condemned in the strongest terms the deadly terrorist attack against the Corinthia Hotel in Tripoli, Libya, and underlined the need to bring the perpetrators, financiers and sponsors of such ... More>>

    ALSO:

    Malawi In Urgent Need After Intense Flooding

    Torrential rains in Malawi have caused dozens of deaths, with hundreds of people still missing. Photo: UNDP/Arjan van de Merwe More>>

    Lack Of Funding Hampering Aid To Syria

    Deputy Emergency Relief Coordinator Kyung-wha Kang briefs the Security Council on the situation in Syria. UN Photo/Eskinder Debebe More>>

    Spy Agency CSE Is Monitoring Our Private Online Activities

    Breaking - Spy agency CSE is monitoring our private online activities on a massive scale and sharing sensitive data with other governments More>>

    UN ‘blue Helmet’ Killed Near Lebanon-Israel Cross-Fire

    28 January 2015 – A United Nations peacekeeper with the UN Interim Force in Lebanon ( UNIFIL ) was killed today near the border with Israel but the precise cause of death is as yet undetermined and remains the subject of investigation, according ... More>>

    ALSO:


    Get More From Scoop

     
     
     
     
     
    World
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news