US Small Business Exports on Food Items to EU is Slimming
The U.S. International Trade Commission found that native businesses have difficulty exporting food products to the European Union. In a recent study, food safety regulations, customs requirements and fees for the protection of intellectual property provide barriers for U.S. businesses in order to export goods to the EU.
According to the ITC report, the required standards and procedures are costly for larger operations and devastating to small- and medium-sized enterprises. This is because many of the costs are fixed and do not take into account the size of the business itself. This means that smaller corporations pay the same amount as larger ones. This regressive fee structure makes exporting goods to the EU fiscally impossible for smaller enterprises.
Tariffs on crops and “stringent and inconsistent EU rules and testing mandates” are partially to blame for the inability of small businesses to export goods to Europe, according to the ITC report. Regulations concerning genetically modified goods that are not based on scientific evidence are additional concerns that reduce exports to the EU. Lamb and poultry industries are essentially banned from exportation due to the unusually high costs to which these businesses are subjected.