- It is the first ten-year strategy to internationalise the Spanish economy, made concrete through two-year plans.
- It defines six areas of action, including helping companies grow in size and attracting high-value-added foreign investment.
- For a small business, the opportunity lies in knowing what support and financing exist before deciding to export.
On 8 September 2017 the Council of Ministers approved the Strategy for the Internationalisation of the Spanish Economy 2017-2027 and the 2017-2018 Biennial Action Plan included in it, and sent it to Parliament. It is the first time a ten-year strategy has been drawn up, conceived as a long-term planning framework made concrete in biennial plans, adapted to the circumstances of world trade at any given time.
The programme identifies areas and sectors with great potential for expansion abroad, with a knock-on effect for the economy as a whole. The plans include concrete measures to support exporters and attract investment to Spain, in cooperation with other institutions and the private sector. At the same meeting, the Government also approved a plan to support the competitiveness of retail trade. As a strategy, it creates no direct rights for companies: its value depends on how it is translated into calls for applications, financial instruments and specific services.
The six areas of action
The strategy sets out six lines: support increasingly adapted to each company’s profile and needs, favouring growth in size; bringing innovation, technology, brand and digitalisation into internationalisation processes; developing human capital; making the most of the opportunities offered by the common trade policy and by financial institutions and multilateral bodies; attracting and consolidating high-value-added foreign investment; and strengthening coordination among all the relevant public and private players.
Among those lines, the reference to size stands out. Spanish companies are, on average, smaller than those of comparable European countries, and growing is almost a condition for competing abroad: exporting regularly requires a sales structure, financing, knowledge of each market and the capacity to bear longer payment cycles. Human capital includes training in languages, foreign-trade management and digital skills, something a company can start working on without waiting for any support.
More exporting companies
The text includes measures to increase the base of companies that export regularly, with different actions depending on company size, such as strengthening ICEX programmes. It also seeks to diversify and consolidate destination markets and to secure financial support for internationalisation operations through instruments linked to FIEM, CESCE, COFIDES and the ICO.
These names designate very different tools. ICEX advises and promotes; CESCE insures the commercial and political risks of exporting; COFIDES finances investment projects by Spanish companies abroad; the ICO channels financing; and FIEM provides financing on favourable terms for projects in third countries. Knowing which one serves each need saves time and mistakes.
What to review
A small business considering exporting should start with a simple question: what does it offer that is different, and to which market, before asking what help exists. Knowing the instruments available, from advice to export credit insurance, makes it possible to size the risk of each transaction, above all non-payment, which is what most often surprises those entering distant markets.
Companies that already export can review their dependence on one or a few markets, the cover of their non-payment and currency risks, and compliance with the customs and tax requirements of each destination. And those thinking of opening subsidiaries abroad or receiving foreign investment should take care of the contractual and tax framework from the start: good design avoids costs and disputes later.
Exporting is a long-term decision: the strategy sets the framework, but each company’s preparation makes the difference.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
