There is a common miss-conception that four or five multiple banks must be involved to manage letter of credit transactions. These multiple banks include credit issuing banks, advising banks, negotiating banks, confirming banks, and reimbursing banks. What is less understood is that these “banks” are functions, not necessarily physical banks. The trade finance functions these banks perform in a transaction can be done by separate banking institutions or by one bank under UCP 600 guidelines (Uniform Customs and Practice for Documentary Credits, ICC Publication 600).
We spoke to the Finastra’s CEO Simon Paris about the future of trade and challenges of capitalism, during the World Trade Symposium at New York. We discussed key themes around bilateralism and multilateralism in global trade and why we need to turn our eyes to plurilateralism. A typical SME trade finance transaction is $25,000, but the average cost to trade finance instruments is $4,000 and this is not particularly helpful in addressing the trade finance gap. Is the technology the remedy here?
The UK government’s Export Credit Agency (ECA), UKEF, has a mandate to ensure that no viable UK export fails for lack of finance or insurance.
We spoke to Anabel Gonzalez during the World Trade Symposium in New York. We discussed whether the current US-China trade war had a positive impact on Latin American trade flows. Geopolitical uncertainty continues to threaten foreign investment and economic growth, particularly in emerging markets. Policymakers around the world are fretting about trade uncertainty and its impact on access to business finance, meanwhile, innovation and competition remain critical for economic growth.
While Boris Johnson’s record for winning votes in Parliament is rather poor (one out of seven) he did, at least, get a majority of thirty for getting his deal through, even if it wasn’t within the timeframe he wanted. In the end, he missed his deadline and was forced down an alternative path.
New York, World Trade Symposium. With the world trade order under threat from protectionist movements, tit-for-tat tariffs, and a shift away from free and open trade, TFG’s Editor Deepesh Patel caught up with ICC’s Secretary General and Member of the World Trade Board, John Denton at Finastra’s World Trade Symposium.
There is no doubt that the new Incoterms® 2020 are very usable in the context of trade within the Europe/Central Asia land mass and transported by land, just as the 2010 and earlier versions were.
TFG structures a £500k revolving trade finance facility for a packaging company for an order of 34 million sustainable glass jars, moving towards a long term sustainable finance facility
Across both developed and developing countries, services trade is accounting for a growing share of GDP. The World Trade Organization recently published their 2019 report “The Future of Services Trade”, which looks at this expansion of service trade and illustrates what the future of the sector may entail.
The macroeconomic indicators used to analyse China’s economy over the past few years include economic growth and trade, monetary and fiscal policy and inflation trends.
The ICC Uniform Rules for Collections (URC522) Supplement for Electronic Presentation (eURC). On 1 July 2019, the revised internet eRules and guidelines for online trade finance documentary collections came into effect for banks, importers, exporters, and freight forwarders to prepare and present electronic records for documentary collections in lieu of or in conjunction with paper documents.
We spoke to Ronan Quigley from the British Chambers of Commerce during the World Trade Summit on 23rd October at The Law Society in London. The event took place amid growing speculation about the prospects of a winter General Election, following the Government’s defeat to its proposed timetable for the passing through of its EU Withdrawal Agreement Bill. Ronan gave us an overview of the support landscape for UK businesses, post-Brexit and discussed the new version of the Incoterms.
Running a business nowadays can be a challenging experience. In most cases, you have to handle multiple administrative tasks, which require a lot of time, money, and attention. Dealing with your finances throughout the year is one of the responsibilities you have to perform to ensure your company’s future.
Trade Finance Global spoke to Chris Southworth, Secretary General of the ICC United Kingdom, and Lesley Batchelor OBE, Director General at the Institute of Export and International Trade about Incoterms® 2020 and what this means for businesses in the United Kingdom
With the UK and EU yet to reach an agreement on their future trading relationship, it is vital goods vehicle operators are as prepared as possible for a No Deal Brexit. In this scenario, new border procedures and haulier responsibilities will come into effect immediately. Hauliers must ensure they fully understand the new road haulage procedures, documentation requirements and responsibilities that will arise; otherwise, they risk their operations coming to a standstill.