Common use of Small and Medium Enterprises Clause in Contracts

Small and Medium Enterprises. The vast majority of companies in both the EU and Mexico are Small and Medium-sized Enterprises (SMEs). Their business activities are diverse, as are their needs in various trade areas. At the same time, SMEs have fewer resources than large companies to overcome the challenges of trading internationally such as import and licensing requirements and the Agreement includes a chapter specifically addressing their needs. This agreement with Mexico is one of the first EU FTAs which includes a dedicated SME chapter, in line with the 2015 EU trade strategy "Trade for all". The provisions will require Mexico to provide a specific web site containing information that EU SMEs need to access the Mexican market, and vice versa. SME Contact Points on each side will work together to take into account the specific needs of SMEs and identify ways that they can take advantage of new opportunities in each market. EU SMEs will gain significantly from many of the more general provisions of the FTA. These provisions make doing business easier with Mexican partners when they export or import goods and services, invest or work together. Measures such as tariff elimination, simplified customs procedures and more compatible technical requirements are lowering export related costs per sold unit and allow SMEs with lower trade volumes to compete alongside larger companies on the Mexican market. This also enhances SMEs' ability to participate in supply chains, e-commerce, and public procurement and to provide services.