EU TRADE AGREEMENTS, BENEFITS FOR SMEs

The document, published by the European Parliament, analyzes how free trade agreements can help small and medium enterprises, providing an overview of existing agreements and identifying a classification of key provisions for small and medium enterprises.

The agreements concluded by the EU create value through the removal of non-tariff barriers,  the liberalization of trade flows of services and goods,  the creation of competitive regulations, the establishment of investment policies and promotion of work and environmental protection.

SMEs represent 99% of all enterprises in the EU and half of its GDP, employing some 100 million people. Small businesses are defined as companies with a workforce of less than 50 people and a turnover or balance sheet of less than €10,000,000.00, while medium enterprises group companies with workforce of less than 250 people and a turnover of less than € 5,000,000.00 or a balance sheet of less than € 43,000,000.00.

The EU Commission has developed a comprehensive strategy to promote the sustainable growth of European SMEs, based on three pillars such as capacity building for the transition to sustainability and digitalisation, reducing regulatory burdens and improving access to finance. But what is the degree of knowledge of FTA by SMEs and awareness of their potential benefits?