Tariff Disadvantages of SMEs in International Trade

Although SMEs working both in developed and developing countries contribute a lot to employment and GDP of the countries they operate, their participations in international trading activities remain modest. Great importance are attached to bringing them international play field from the viewpoint of macroeconomic stability of the world economy. In the process of internalization, SMEs encounter a lot of obstacles such as high level customs tariff and quasi tariff financial burdens, as well as other non- tariff barriers. But who creates these obstacles are SMEs themselves. SMEs most of whom operate in import substitution industries in their home country receive tariff protection support from their governments, thanks to their high lobbying power. In order for SMEs to be able escape from this vicious cycle, it is impossible for countries to fight with the protectionism in their own initiatives. In this regard, instead of governments’ initiatives, a multilateral initiation under the WTO umbrella could be considered