Abstract
Small and medium enterprises (SMEs) are critical to global trade and economic growth, yet they face mounting challenges as sustainability-driven trade barriers, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), impose compliance demands. This developmental paper examines best practices from literature and insights from practitioners to identify strategies that help SMEs in the UK, and ASEAN economies navigate evolving trade borders while maintaining competitiveness. A mixed-method approach, incorporating case studies and expert interviews, is adopted. Resource-Based View and Transaction Cost Economics will be used to analyse case studies. This study highlights financial and regulatory constraints and looks to recommend tailored policy interventions. The research aligns with the BAM2025 theme by analysing how net-zero policies disrupt institutional frameworks and create new trade dynamics for SMEs.