Spain arrives at the V Internationalization Summit with a spectacular balance of the first quarter of 2023 for foreign trade

It is the time of Spain. Internationalization must be a priority of economic policy

In the Joint Declaration presented at the Summit, the Spanish Chamber of Commerce, CEOE, the Forum of Renowned Spanish Brands, the Club of Spanish Exporters and Investors and the Spanish Association of Managers, have highlighted the energizing and transforming role of the foreign sector in the Spanish economy.

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[Video] summary of the summit

 

In addition to the video summary, we offer you the FULL VIDEO OF THE SUMMIT below:

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“The Spanish company contributes in a very relevant way to the best brand Spain. These successes of good work and commitment are a key exponent of the image of our country abroad,” said the Minister of Industry, Commerce and Tourism, Hector Gomez, at the closing of the V Internationalization Summit held in Madrid and organized by the Spanish Chamber of Commerce, CEOE, the Forum of Renowned Spanish Brands, the Club of Spanish Exporters and Investors and the Spanish Association of Managers.

 

In his speech, the minister also highlighted that “Spain arrives at this V Internationalization Summit with a spectacular balance of the first quarter of 2023 for foreign trade, an improvement in competitiveness with respect to neighboring countries and excellent data.  Spanish merchandise exports have increased compared to imports"Although both continue to record historical highs, the trade deficit has been reduced by 60% and coverage has reached 94%," he noted.

 

The five organizations, in the Joint Declaration presented at the Summit, have highlighted the dynamic and transformative role of the foreign sector in the Spanish economy over the last fifteen years and have stressed that Internationalization must be a priority of our economic policy in a context, furthermore, marked by uncertainty and in which risks of different types arise that largely affect the International Trade.

 

In their Declaration, business organizations have recalled that, in recent years, exports of goods and services have gone from representing 23,1% of GDP to the current 41,7%, and that the number of regular exporters has risen in this period from around 30.000 to around 60.000, and that in parallel there has been a “cultural change in our business fabric, which has understood that internationalization is a strategic commitment on which its growth, its competitiveness and in many cases its survival depends.”

 

They have also pointed out a set of factors that should be considered by public authorities with the purpose of strengthening the competitive position of the Spanish foreign sector. Among them, first of all, “strengthen the national intelligence system for internationalization, made up mainly of the network of Economic and Commercial Offices and the central services of the Secretary of State for Commerce, so as to provide Spanish companies with a systematic analysis of the different scenarios and the possibility of anticipating risks.

 

Likewise, to the extent that the number of exporting companies is still relatively small and characterized by an acute duality, in which very few companies account for a very high percentage of exports, the organizations call for efforts to awareness and instruments that help SMEs to grow and be more competitive.

 

 

They identify a series of factors that should be corrected in order to strengthen the competitive position of Spanish companies in international markets.

 

 

They consider that the Spanish foreign sector must take a leap forward both in geographic diversification, to increase its presence in regions such as Asia, as well as in quality, incorporating factors such as brand, design, innovation and technology, which increase the added value of exports and our country brand.

 

They also insist on the need to prioritize economic diplomacy within Spain's foreign policy, and the assumption as a country of greater influence in European trade policy, safeguarding the openness of the EU to foreign trade and favoring the diversification of supply chains and our export markets.”

 

They understand that “this must be done through the commitment to multilateralism and the strengthening of relations with our strategic partners, among which the Latin American countries stand out, with whom we must forge a privileged relationship also on the economic-commercial level. , through the signing and entry into force of the pending Agreements withn Chile, Mexico and Mercosur".

 

As a general framework for the action of public powers to contribute to the promotion of the competitiveness of companies, the organizations convening the V Internationalization Summit recall the need to reduce administrative, legislative and fiscal complexity, apart from addressing their support needs. through financial tools (especially to support implementation processes) and promotion.

 

 

Resilience of the Spanish foreign sector

 

In the turn of interventions of the leaders of the organizations convening the Summit, within a round table in which he also participated Xiana Méndez, Secretary of State for Commercewho emphasized that “internationalized companies are at the forefront of Spain’s economic and social development. Their role is fundamental to facing the challenges posed by today’s global landscape. Therefore, we are working to ensure that trade policies and support for internationalization help our companies overcome these challenges.”

 

Ehe president of the Spanish Chamber of Commerce, José Luis Bonet, highlighted the difficulties that a international context like the current one, “loaded with tensions in the markets and uncertainty”, and the resilience of the Spanish business sector, which “has been able to respond to the difficulties caused by the pandemic and that despite the general increase in costs and the closure of some markets, has maintained, if not strengthened, its international position, seeking and finding opportunities in the reconfiguration of global value chains.”

 

 

Within the framework of the summit, the study 'The Spanish company facing a new international scenario', prepared by KPMG in collaboration with the organizing organizations of the Summit, ICEX and DHL, was presented.

 

 

For its part, the president of CEOE, Antonio Garamendi, has highlighted the efforts of Spanish companies in terms of internationalization in recent years and the boost that this has meant for economic development: “The internationalization of the Spanish economy, through its companies, is a success story ”. “The internationalization of our companies is synonymous with greater competitiveness for our country and is an example of brand Spain. Companies that incorporate internationalization into their strategy are more competitive companies,” highlighted the president of CEOE.

 

Sofía Osborne, president of the Forum of Renowned Spanish Brands, also praised Spanish companies for their “great agility and capacity to adapt” in a different geopolitical environment and in an uncertain context. “The gains in competitiveness generated by their sustained commitment to internationalization have allowed them to face a moment of turbulence like the current one with greater guarantees.” “We can be optimistic, but it is undoubtedly necessary to know and analyze the challenges we face and the concerns and needs of companies,” said Osborne.

 

In the same direction, the president of the Spanish Exporters and Investors Club, Antonio Bonet, who highlighted that “Spanish exporters have been demonstrating for years their strength and ability to adapt to the demands of the international markets, given the contexts of uncertainty that we are witnessing. They are a fundamental pillar for the growth of our economy and to expand our international market share.” Likewise, he recalled that, to avoid the loss of international competitiveness of the foreign sector, "structural reforms are necessary aimed at promoting business growth with measures that provide stability and certainty, reduce the tax pressure on companies and encourage investment, in addition to reinforcing intelligence systems in companies and administrations to anticipate possible risk situations.”

 

Xavier Gangonells, general director of AED In his speech, he acknowledged the "good work of business leaders in our country" in enabling Spanish companies to gain ground in international markets and conquer new territories every day. "They are playing a fundamental role in the growth of exports, providing leadership and strategic vision in decision-making that has been key to successfully expanding the 'Made in Spain' brand," he said.

 

KPMG study

 

Within the framework of the summit, the study 'The Spanish company facing a new international scenario', prepared by KPMG in collaboration with the organizing organizations of the summit, was presented. Summit, ICEX and DHL.

 

These are the results of a survey carried out on 500 managers that reveals the structural commitment of Spanish companies to internationalization, while sSeven out of ten (71%) businessmen consider that their international activity will not decrease in the coming years and that 42% believe that foreign business will increase. In fact, 81% of respondents say they are exploring new international opportunities through new markets, channels and alliances.

 

The study reveals that, after the pandemic and disruptions in supply chains, factors in the environment still persist that negatively impact companies. In this sense, 74% of managers affirm that the international context is adversely influencing their companies. Specifically, the increase in costs and its effect on margins, and the climate of uncertainty and general instability are the most challenging aspects.

 

While The European Union maintains its weight in the international strategic agenda of Spanish companies (93% of companies operate in this market and 55% expect to expand this position in the next five years), when choosing the most attractive countries for their growth potential, managers almost unanimously opt for United States (90%). European countries also stand out such as Germany, France or Italy, and Latin Americans like Mexico.

 

Finally, although most managers believe that funds Next Generation will not impact the ability of their companies to compete in international markets, if they consider it necessary for public institutions to promote measures to support internationalization, including fiscal and financial support for exports and investment (82%). Other areas in which greater public support is expected are the promotion of the Spain brand, the defense of the interests of Spanish companies and aid in the face of geopolitical or other disruptions.