Leaders of the six Asian countries here yesterday met with business community representatives to share their recommendations for enhancing trade and investment in the Greater Mekong Subregion (GMS), reports Xinhua.

The prime ministers of six GMS countries, namely, Cambodia, China, Laos, Myanmar, Thailand, and Vietnam, are here for the Third GMS Summit.

Before meeting the GMS leaders, representatives from GMS Business Forum (GMS-BF) members, leading business communities, the offices of the GMS National Coordinators and the Asian Development Bank (ADB)held the GMS Business and Investment Dialogue (BID).

The Dialogue participants discussed challenges to intra-GMS trade and improvements in the GMS investment climate; implementation of the GMS Cross-Border Transport Agreement; and enhancing the involvement of small and medium-sized enterprises in the export market.

They agreed that the integration of GMS economies will further enhance the benefits from public-private sector cooperation in trade and investment. They called for more measures to regulate border trade so as to facilitate region-wide movement of goods to bring greater benefits to local businesses and the economies in the region.

The BID devoted its second session on the implementation of the GMS Cross-Border Transport Agreement (CBTA) and its crucial role in promoting the competitiveness of the subregion. The Dialogue participants called for strong, active and committed participation of the private sector and the GMS business community in implementing the CBTA effectively.

They proposed that an appropriate mechanism be established to bring together GMS Business Forum representatives, relevant GMS senior officials and interested stakeholders in the business community for implementation of the agreement.

In 2003, the GMS countries ratified the CBTA, which seeks to reduce non-physical barriers to the movement of goods and services across borders.

The BID participants share the view that enabling small and medium sized enterprises (SMEs) to engage more fully in international trade lies at the core of building competitiveness of the GMS.

The BDI participants see it as a more practical strategy for SMEs to participate in global value chains and recommends that a mapping exercise of global value chain opportunities for SMEs should be undertaken.

They see the lack of access by SMEs to credit for financing their exports as a major constraint to their ability to participate in the export market. In order to address the problem, the GMS-BF proposes the setting up of a SME Regional Development Fund that will provide technical assistance and equity financing for SMEs.

The fund itself will not provide guarantees directly to SMEs in individual countries. The local guarantee institutions to be set up under the scheme would deal directly with addressing particular country issues on SME financing.

During the Second GMS Summit held in Kunming, China in 2005, business and Investment Dialogue was introduced as a component event of the Summit to enjoin the private sector in GMS discussions and endeavors.