MSMEs in cross border E Commerce – Challenges, Opportunities and Trade Facilitation Measures
MSME's and E Commerce
Opportunities for MSMEs in Ecommerce
Challenges for MSMEs in E-Commerce
Vulnerability of MSMEs in international trade
a) Need more human resource to export per unit of revenue due to scale of operations
Trade Facilitation Measures for MSMEs in Ecommerce
Also, schemes that are designed for greater ease of transaction at border, such as the Authorized Economic Operator (AEO) program - a program flowing from the Trade Facilitation Agreement of WTO - are heavily skewed to help multinationals and bigger corporations. A rethink is required to make such programs suitable to MSMEs.
Finally, the barriers to trade for MSMEs arising out of technical and non-technical barriers erected by various governments needs a look into. As world have negotiated away the tariffs, a common way to protect local industries is through erection of the so called Non Tariff Barriers (NTBs). The rise of NTBs in recent years has affected MSMEs badly. This has carried over to the E-commerce trade.
To sum up, trade facilitation for MSMEs needs a paradigm shift in the way the border compliances and regulatory functions are designed. Unless addressed adequately, we may end up in a situation where the bigger organisations end up gaming the cross border E Commerce and leading to an unequal, non level playing field for SMEs.