Overregulation slows SME exports: COMCE – PetsPedia

Overregulation slows SME exports: COMCE

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Overregulation slows SME exports: COMCE

The more regulation it is, the more difficult it is for companies to participate on a large national scale ”, said the director general of the Council

Photo: Courtesy

Miguel ÁngelEnsástigue | The Sun of Mexico: Overregulation slows SME exports: COMCE

The small and medium enterprises ( SMEs ) face a national overregulation for exports, despite the various trade agreements and technological advances in the country, said Francisco Mendez, CEO of the Business Mexican Council for Foreign Trade , Investment and Technology (COMCE) Shallows.

At a press conference, the businessman explained that bureaucracy is another limitation faced by SMEs, who five out of 10 do not have a specialist in foreign trade to make this business process easier.

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“They are specific procedures with which they have problems getting or obtaining them. The more regulation it is, the more difficult it is for companies to participate on a large national scale, ”he said.

At the beginning of the year, the Ministry of Economy (SE) published a decree in the Official Gazette of the Federation (DOF) for the creation of a National Committee for Trade Facilitation, made up of the government and the private sector, to promote commercial participation of Mexico in the world.

With this, according to Francisco Mendez, a calculation was made to know the impact of these support and only by eliminating the over-regulation in SMEs, these companies could have a market share of 12 percent in 2025, since they currently only have 5 percent.

If these appropriate facilitation strategies, programs and instruments are maintained, in 2030 the participation of SMEs could grow up to 25 percent, he added.

The courier industry is a sector that is growing at a rate of between 25 and 30% per year, driven by SMEs and e-commerce / Photo: Courtesy

“Economic activity has been modernized with the signing of free trade agreements. However, logistics, customs processes, over-regulation and oversight have not changed what is necessary, they lead to inefficiencies and high transaction costs that make companies less competitive, especially SMEs ”, he highlighted.

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The stimulus program of the United States, for 1.9 trillion dollars, will result in an annual growth of between 8 and 9 percent in Mexican exports at the end of 2021, assured Fernando RuízHuarte, general director of COMCE.

“In 2021, exports will end at 450 billion dollars, although in 2019 we end at 460 billion dollars, that is, still slightly down. We are going to see how that figure comes out, if I approach it, hopefully it will be exceeded ”, he commented.

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RuízHuarte recalled that Asian countries are seeking to invest in America, especially in Mexico, to be close to their value chains, in addition to their technology, manufacturing, and other advances in the industry.

He added that the main sectors with the greatest opportunities are the automotive, electronics, electrical appliances and telephony, although they must also seek to increase the added value of what Mexico exports.

 

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