_______________ (2004d). Promoting the export competitiveness of SMEs.

(c) To enhance Canadian industrial competitiveness and export capability

Promoting the export competitiveness of SMEs. Issues note by the UNCTAD secretariat. Geneva.

A Guide to Commodity based Export Diversification and Competitiveness Strategies in Africa has been finalized to help the countries develop a holistic approach to addressing supply side and competitiveness issues in the commodity sector for export development.

Higher import costs and lower export earnings combined to reduce the competitiveness of landlocked developing countries.

By forming networks of trade oriented SMEs or export consortia, often within existing broader clusters of SMEs, joint actions were promoted to enhance their export competitiveness.

98. During 1995, research was completed for a project on export competitiveness in post apartheid South Africa.

As part of the intergovernmental process, the Division organized two interactive thematic sessions Leveraging FDI for Export Competitiveness and Building Productive Export Capacity of Developing Country Firms .

However, by forming networks of trade oriented SMEs or export consortia, often within existing broader clusters of SMEs, joint actions can be promoted to enhance their export competitiveness.

The meeting was held on 8 10 December 2004 and addressed the work of the Commission in the field of enterprise competitiveness, focusing on enhancing the export competitiveness of SMEs.

Higher freight rates of course also affected the competitiveness of those steel producers that mainly depend on export markets.

Report of the Expert Meeting on Promoting the Export Competitiveness of SMEs (TD B COM.3 EM.23 3).

Source Presentations by Radvi Kant and Bikash Mukherjee (UNCTAD, Expert Meeting on Improving the Export Competitiveness of SMEs, Geneva, 2004).

2 United Nations Conference on Trade and Development, Promoting the export competitiveness of SMEs , TD B COM.3 EM.23 2.

However, LDCs tended to be more sensitive than others to losses in competitiveness, particularly when they suffered from high export concentration.

A depreciation of the currency, by about 8 per cent, is also likely as the authorities seek to boost export competitiveness.

In the past four years, UNCTAD has organized a series of Expert Meetings on issues related to the competitiveness of domestic firms, in particular SMEs, including export competitiveness, with a particular focus on business linkages.

As per the Commission's decision at its eighth session, the secretariat convened an Expert Meeting on Promoting the Export Competitiveness of SMEs.

Some firms have dramatically improved their competitiveness by using ICTs, and some countries are increasing their export strengths in the ICT sector.

The long term economic benefits of an effective competition policy, in particular its contribution to the growth and export competitiveness of developing countries

In collaboration with the Common Fund for Commodities, UNCTAD is implementing a project on Quality Assurance and Enhancing Export Competitiveness for African LDCs.

The discussions had focused on three issues the concept of export competitiveness (at country level, firm level and cluster level) the importance of production networks and of linkages with TNCs in raising the competitive potential of SMEs and the policy space left to and needed by Governments to support the export competitiveness of SMEs.

Gulf enterprises could benefit greatly from critical support services to enable them to meet export standards and technical requirements and regulations, raising their productivity and competitiveness to international levels and enabling them to reach export markets.

The experts had examined a set of policy recommendations to enhance the export competitiveness of SMEs, including through possible links to international supply chains.

Successful completion of the Doha Development Agenda negotiations, combined with assistance in building the export competitiveness of developing States, is essential for facilitating development.

But export oriented FDI is also unlikely to find this an attractive setting, given that low wages are only one element of cost competitiveness.

Competitiveness was based not only on quality and price of products but also on such interrelated factors as good production practices and export financing.

The result had been ballooning current account deficits and the slowing down of capital inflows as export and asset competitiveness had eroded with increasingly overvalued currencies.

OFDI has helped Indian enterprises, particularly SMEs, increase their export competitiveness and R D intensity, strengthened their trade support and marketing channels, and contributed to skills upgrading.

Export subsidies and domestic supports maintained by developed countries are the main reasons for depressed world prices for agricultural commodities, undermining the competitiveness of landlocked developing countries.

In the absence of selective export promotion policies, competitiveness depends on the behaviour of real wages and the real exchange rate, as well as on productivity growth.

Policy advice and technical cooperation are focusing on industrial governance, industrial export capacity building, quality and certification for industrial competitiveness, international industrial partnership and local industrial development.

At the same time, outward expansion is also driven by a need to improve export competitiveness, access technology (particularly in developed countries) and meet increased competition at home.

39. In the absence of selective export promotion policies, competitiveness depends on the behaviour of real wages and the real exchange rate, as well as on productivity growth.

Over the longer term, a strong currency promotes efficiency in export industries, further insulating competitiveness from exchange rate effects. Dollar depreciation improves Europe s terms of trade and real income.

During the Meeting, experts discussed different patterns of SMEs' internationalization that help increase export competitiveness. These include integrating clusters, global value chains, and linking up with transnational corporations (TNCs).

The United States has built up its export competitiveness in audiovisual products through control of distribution networks, where its major companies are becoming even more important in convergent markets.

The Chairman of the Expert Meeting on Promoting the Export Competitiveness of SMEs, held in December 2004, presented the report of the Meeting (TD B COM.3 EM.23 3).

Trade liberalization is emphasized as an engine of growth, where a WTO compatible trade regime is considered to be the paramount element in enhancing the economy's export capacity and competitiveness.

108. The exchange rate depreciations that the financial markets forced on the region (see table A.10) have been helping to rebuild the export competitiveness that some countries had lost.

Some developing country firms may seek ISO 14001 certification as a means to increase export competitiveness and strengthen market positions, even in the absence of explicit pressure from overseas customers.

Competitiveness Surveys

In addition, to improve market ability and competitiveness, a strategic policy should be implemented comprising such measures as the establishment of import export trading companies, creation of industrial design centres, adoption of export insurance facilities, setting up of marketing consultancies and building of strong brand names.

However, even in these early stages, policy measures were selective with the clear aim of achieving international competitiveness, and thus closely linked to goals of industrial deepening, export promotion and technological upgrading.

Climate and Competitiveness