Turning Trade Challenges into Strategic Opportunities

In this blog post for ACT-The App Association, author María Goikoetxea looks at how European small and medium-sized enterprises (SMEs) are navigating an increasingly complex regulatory and trade environment. While recent years have brought mounting regulatory hurdles, shifting trade dynamics now add new layers of uncertainty. In response, EU policymakers are rethinking trade dependencies, pushing for regulatory simplification, and seeking diversified partnerships to support growth. For SMEs, these developments hold promise—new markets, increased innovation support, and a more growth-friendly ecosystem—if the regulatory burden is meaningfully reduced.

Goikoetxea highlights how the EU’s evolving trade policy is central to this transformation. The bloc is modernizing existing trade agreements and pursuing new ones with countries like India, Korea, and Indonesia, aiming to strengthen economic ties and tap into dynamic digital markets. The EU-Mercosur Agreement, poised for finalization, could be especially impactful, linking over 700 million people and creating major opportunities in green tech and exports. These trade deals are particularly valuable for SMEs and startups looking to scale globally by offering access to larger, more diverse markets.

Alongside trade reforms, there is a growing EU focus on boosting internal technological capacity, particularly in artificial intelligence. The AI Continent Plan lays out ambitious goals: from building computing infrastructure and AI factories to nurturing deep-tech talent and research. Yet Goikoetxea stresses that none of these initiatives can succeed without reducing regulatory complexity—a persistent obstacle for Europe’s 23 million micro and small enterprises. The blog explores how initiatives like the EU Innovation Act, the 28th Regime, and the withdrawal of burdensome directives signal a positive shift. However, sustained political will is needed to turn simplification into a tangible reality for Europe’s innovators.

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