MANILA, PHIILPPINES – Member economies of the Asia-Pacific Economic Cooperation (APEC) must enhance the participation of small and medium enterprises (SMEs) in the automotive industry to spur regional growth, a Philippine trade official has said.
In his keynote speech on Wednesday, Trade Assistant Secretary Ceferino S. Rodolfo said globalization makes a good driver of cooperation because it enables many economies to be key players in automotive manufacturing by participating in production activities of global value chains (GVCs).
“But an economy’s participation in GVCs does not readily translate to inclusive growth. We need to deliberately foster SME participation in automotive GVCs,” Rodolfo said.
Globalized competition and barriers to trade have a disproportionate impact on SMEs as well as on larger enterprises, he said, noting however that by fostering SME development for inclusive growth, APEC economies also realize that a broad-based SME network is critical in providing support and complementation to larger enterprises.
Rodolfo further said that the development of small and medium enterprises could be a source of flexibility, nimbleness and quick reaction to emerging trends.