New Delhi, May 31 (KNN) Raising concerns over the challenges faced by MSMEs in the developing countries due to global slowdown and protectionist measure being taken by the developed countries, Trade and Commerce Experts from Commonwealth countries called for a better collaboration amongst the commonwealth countries to boost trade.

Speaking at the First India-Commonwealth SME Trade Summit on the topic ‘ Global Challenges faced by Commonwealth Countries’, Anup Wadhawan, Additional Secretary, Department of Commerce said, “We are still in the midst of global slowdown which has even impacted countries like China. The recovery from the global slowdown is week and uncertain

He said the key implication of global slowdown is that it makes the global economy more competitive and this is what the most commonwealth countries need to factor in on.

Wadhawan highlighted that the develping countries have faced more non-tariff barriers and they have become even more pronounced in light of slowdown.

Pointing that protectionism has gone beyond exports of goods, he said most developing countries have interest in services export and they are facing the brunt of protectionism.

“These are the circumstances which commonwealth countries face today. So one of the options is to put domestic options in order and make your economies competitive in terms of policy, framework etc in order to enable job creation and more,” he said.

Deliberating in the impact of Brexit, the Additional Secretary said Brexit can be seen as an opportunity to emphasize on.

“TFA must be seen as larger opportunity. Services are a key element of global trade today and they are increasing part of goods trade. However, to deal with the protectionist sentiment emerging, Commonwealth Travel Business Card can temporarily help deal immigration problem of professionals who are moving to do business.

On MSME cooperation framework, Wadhawan said there is a need to create a platform which would facilitate trade, reduce transportation costs etc and this MSMEs will be the major beneficiary.

Events like this should not be one time event but should have institutional backups like portals…there is a need to create awareness….it can be IT enabled and based on a portal.

Highlighting the challenges faced by MSMEs in countries like Swaziland in terms of identifying investors, Philsilwa Dlamini, Acting Director, SMME unit, Ministry of Commerce, Industry & Trade, Swaziland, said Commonwealth can help in identifying right and serious investors through relevant database and it can help check illegal immigration problems.

Responding to this, Wadhavan cited example of the APEC business card which has been successfully implemented. He said it has addressed security issues as well as all the APEC countries have to approve the card and only then it can be used.

“We need to address security needs through suitable moves,” he stressed adding that there is a lack of commonality in MSMEs in Commonwealth countries like the definition of MSMEs, challenges, common issues of technology, finance and they need to be identified and addressed collectively.

Yassin Awale, Advisor, Ministry of Industry, Investment and Trade, Leather Sector, Kenya, said, “Some of the Commonwealth countries have common problems of infrastructure, employment, poor performance in trade in international arena for which there is a need for deepening intra-commonwealth trade.”

Highlighting that the growth amongst Commonwealth countries is not so good, Awale said citizens in countries who have benefited most from Free Trade Agreements have now started questioning if free trade has benefited them or not.

Awale said travel card will facilitate movement of people for businesses.

Claire Filipe Correia Zimba, General Director, Institute of Promotion of Small and Medium Enterprises, Mozambique, said there is a need to understand how MSMEs within Commonwealth  Countries can play a common role in doing business.

The discussions were held on day two of the India-Commonwealth SME Trade Summit, which saw the participation of more than 300 delegates from across the Commonwealth countries. (KNN Bureau)