Workshop on Aid for Trade and Trade 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