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AID FOR TRADE: AID FOR TRADE AND TRADE FINANCE — 15 MAY 2012

Workshop on Aid for Trade and Trade Finance

Aid for Trade has an important role to play in helping develop the necessary local financial infrastructure to access trade finance. Access to affordable financing is essential to facilitate trade. Between 80-90 per cent of global trade involves some form of financing, normally of a short-term nature.


See also:
More on Aid for Trade
More on the Working Group on Trade, Debt and Finance

 

Some countries face “structural” problems in accessing financing, for reasons such as poorly developed banking sectors, perceived credit risk and limited penetration of global markets, in particular through supply chains.  Particular companies may also face specific challenges in access, notably micro-, small- and medium-sized enterprises (MSMEs).  The financial crisis of 2008 brought these issues into sharp focus.  The accompanying credit crunch dried up liquidity in the trade finance market and raised funding costs so threatening to further amplify the downturn in global trade.

The WTO is closely involved in efforts to monitor and address market failures in the trade finance market.  Since the Doha Ministerial Meeting, the WTO Working Group on Trade Debt and Finance (WGTDF) has overseen and encouraged WTO initiatives on trade finance — a mandate which was reiterated at the Eight Ministerial Conference.  Since 2007, the Director-General has convened an Expert Group on Trade Finance to report on market developments and possible steps to address market gaps and failures.  These reports have informed advocacy activities, led by the Director-General, such as with the G-20 and the Basel Committee on Banking Supervision.  Notable outcomes of these advocacy activities include:  the London G-20 Summit trade finance initiative and the treatment of trade finance in the Basle III rules.  Another important element of WTO trade finance advocacy concerns Aid for Trade to address structural problems encountered by developing and transition economies, and in particular Least Developed Countries (LDCs).

Read more about the on-going initiatives being taken to assist countries in accessing affordable finance: WT/COMTD/AFT/W/33.
  


Agenda
Tuesday, 15 May 2012 — WTO, Centre William Rappard

 

3 p.m. — 3.05 p.m.
  Chair introduction

Audio: Chair’s opening remarks 
  

3.05 p.m. — 3.15 p.m.
 

ADDRESSING TRADE FINANCE ACCESS ISSUES THROUGH AID FOR TRADE
WTO Director General, Mr Pascal Lamy
Audio: Keynote Address by the Director-General 
  

 

SESSION 1:

AID FOR TRADE AND TRADE FINANCE — OVERCOMING ISSUES OF STRUCTURAL ACCESS AND SHORT-TERM LIQUIDITY
 
  3.15 p.m. – 4.30 p.m.  
  IADB: Trade Finance: Crisis and response in the Americas  
   

Daniela Carrera-Marquis, Chief, Financial Markets Division, Inter-American Development Bank

  • Trade finance issues in the Americas in the pre-crisis period
  • Trade finance and the crisis
  • Learning from the EBRD’s experience
  • IADB’s Trade Finance Reactivation Program
  • Outlook for trade finance in the Americas
    > Presentation
      
 
  World Bank Group: Trade finance: From crisis response to structured support  
   

Scott Stevenson, Senior Manager, International Finance Corporation, Global Trade Finance Program

  • Trade finance: why not leave it to the market?
  • Addressing market failure: IFC’s Global Trade Finance Program
  • Crisis response: the Global Trade Liquidity Programme
  • Lessons learnt, challenges remaining
    > Presentation
      
 
  AfDB: Trade finance: Addressing structural access issues in Africa  
 

Yaw Kuffour, Chief, Financial Institutions Division, African Development Bank

  • Overview of structural access issues
  • Particular constraints for SMEs
  • Learning from other IFIs trade finance programmes
  • GTLP and the AfDB’s Trade Finance initiative
  • Outlook and challenges
    > Presentation
      
  Discussion
  
 
 

Audio: Listen to Session 1    > help   

  
 
 

SESSION 2:

ADDRESSING TRADE FINANCE ISSUES FOR MICRO, SMALL AND MEDIUM SIZED ENTERPRISES  
 

4.30 p.m. – 5.30 p.m.

 
 

UPU:

Trade finance and the postal system  
   

Nils Clotteau, Partnership and Resource Mobilization Expert, Universal Postal Union

  • Trade and the postal system
  • Exporter Facil Programme (Easy Export System)
  • Expanding easy export into finance products
  • Mobile payment systems — opportunities/challenges
    > Presentation
      
 
 

Symbiotics Group:

Trade finance and micro-credit  
   

Roland Dominicé, Chief Executive Officer, Symbiotics Group

  • Micro-credit — from Grameen to Global
  • Overview of Symbioitics
  • Micro-credit beyond national borders — challenges/opportunities
  • Microfinance and trade finance — future perspectives
    > Presentation
      
 
  Discussion
  
 

Audio: Listen to Session 2    > help   
  

 


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