Interview with Christopher Walker, CEO, Diamond Hard Surfaces and Chair of the FSB Department for International Trade Policy Unit
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Christopher Walker is the Chief Executive of Diamond Hard Surfaces and Chair of the Federation of Small Businesses’ Department for International Trade Policy Unit, here he discusses trade policy from a small business perspective.
What specific considerations should there be for SMEs in international policy discussions (either at the WTO or as part of negotiations for bilateral free trade)?
Our research indicates that tariffs and non-tariff barriers, like rules of origin, are of equal importance when it comes to small businesses trading internationally, as well as the costs and burdens associated with customs. Therefore, it is important that any negotiation, whether that be bilaterally or multilaterally, put the issues of small business at the front and centre of any negotiation. Moreover, the inclusion of a small business chapter must form a key objective in any future trade agreement to help small businesses overcome issues like access to information and complexity of regulation etc.
What does the FSB do to try to engage on these issues?
We engage with Government, international institutions, and stakeholders to ensure the voice of small businesses is heard and at the highest levels. This involves direct advocacy, expressing our views through dedicated Government Expert Trade Advisory Groups, to travelling to the World Trade Organisation (WTO) to explain how small businesses trade and the barriers they encounter.
We have also increased our international engagement over the past twelve months significantly. For example, I spoke on a Panel at the United Nations Conference on Trade & Development, during its E-Commerce Week, on digital trade earlier this year, and our National Chairman hosted a workshop at the request of the WTO’s Informal Working Group on small business and trade facilitation.
How can policymakers support small businesses following international trade agreements?
Policy-makers should ensure that small businesses: (a) are made aware of the benefits of any free trade agreement for their business; (b) that the process to tap into the benefits an agreement may accrue are not too cumbersome or costly; and (c) have access to trade finance and export support to start or increase their international trade capacity. Moreover, policy-makers should continue to engage with stakeholders to ensure that any agreement is effectively enforced and works for the small business community.
What challenges are there associated with the digital economy in trade agreements?
Undoubtedly, due to the nature of digital trade and distance selling, the key issue is fostering trust: from the use and flow of data, the protection of intellectual property, to cybersecurity. We see these issues cropping during our work at European, international, and even at the national level.
Moreover, there appears to be a growing trend of barriers to digital trade appearing like data localisation requirements and even talks of introducing customs duties on electronic transmissions. These are all issues that will need to be tackled to ensure that small firms can continue to participate and thrive in a global digital marketplace.
Interview conducted by Amy Wevill