Apr.4--SMALL and middle sized enterprises (SMEs) face barriers to export trade in the European Union, according to a new report by the US International Trade Commission (USITC).

 

The report, conducted on behalf of the US Trade Representative, outlines the EU regulations and procedures are costly for all companies but particularly to smaller-sized companies or export revenue. 

 

The study flagged protection of trade secrets, high patenting costs, and logistics challenges, customs requirements, inconsistent Harmonised System classifications and the EU's value-added tax system.

 

US exports of agricultural products for SMEs, which include corn, dried fruit, animal feed, cheese and wheat industries, suffer high tariffs, stringent and inconsistent EU rules. 

 

The report also criticised testing mandates and a lack of a science-based regulatory focus (especially for genetically modified traits). This lack of harmonisation between US and EU standards, and the EU's protected designations of origin (PDOs) has been a huge trade barrier to aggro.

 

The US poultry and lamb industries reported that they are effectively banned from exporting to the EU.