Study - EU’s trade and digital economy - Challenges and opportunities for SMEs - 09-07-2025
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This research paper examines the evolving landscape of digital trade and its impact on small and medium-sized enterprises (SMEs) in the European Union (EU). As digitalisation transforms global commerce, EU SMEs face significant opportunities as well as regulaStudy - EU’s trade and digital economy - Challenges and opportunities for SMEs - 09-07-2025
This research paper examines the evolving landscape of digital trade and its impact on small and medium-sized enterprises (SMEs) in the European Union (EU). As digitalisation transforms global commerce, EU SMEs face significant opportunities as well as regulatory and competitive challenges. The study highlights key digital policy approaches, and in that context situates the current EU practice and commitments in international trade agreements affecting cross-border data flows, digital platforms and market access. The research highlights that while digital trade lowers costs and expands opportunities, complex compliance requirements and regulatory fragmenta¬tion hinder SME competitiveness. The study contrasts the EU’s rights-based approach to digital governance with the market-driven framework of the United States and the state-controlled model of China. To enhance SME participation in digital trade, the paper recommends a coordinated whole-of-government approach to digital regulation, stronger EU leadership in global trade negotiations, tailored SME provisions in trade agreements and expanded support for digital innovation and skills. Source : © European Union, 2025 - EP Read more