OECD: Address constraints faced by SMEs
CEBU CITY—The Asia Pacific Economic Conference (Apec) has to address the constraints faced by small and medium scale enterprises (SMEs) engaged in services so the sector could go global.
Trudy Witbreuk, head of the development division of the Organization for Economic Cooperation and Development’s (OECD) trade and agriculture directorate, said services play a vital role in the global economy.
Speaking at the opening session of the Apec Dialogue with OECD on Services SMEs held Friday, Witbreuk said services, which include legal services, accounting, engineering and a host of technical services, were vital inputs in the global value chain. International services SMEs were largely knowledge intensive services that produce information intensive products, she pointed out.
According to Witbreuk, the dialogue “seeks to explore trade and trade-related polices that affect the participation of services SMEs in the global economy.”
She said it would focus on the role of services trade policies in shaping the emergence of micro multinationals and new opportunities for services SMEs. The dialog will focus on two policy areas: opportunities and policy constraints.
“Although the opportunities for services SMEs to go global are many, the challenges and obstacles are also numerous,” Witbreuk said.
Governments impose regulations on these services to ensure quality and safety standards, she said.
Luis Catibayan, director of the Bureau of Import Services of the Department of Trade and Industry (DTI), also cited the importance of services SMEs.
“Services lie at the very hub of any economic activity in any society. It is essential in linking all sectors of the economy, including the final consumer,” Catibayan said. “Thus, it is imperative to recognize that services are not peripheral activities but rather an integral part of the society.”
