01. ICC Market Intelligence Survey on Trade Finance
Vincent O’Brien, reports on the ICC Market Intelligence Survey prepared for the WTO in association with the World Bank, SWIFT, the IFC, EBRD, ADB and IADB.
Leaders of the G20 countries must coordinate their national policies to end the global recession, support a monitoring system to honour previous promises to reject protectionism, and restore trade financing to more normal levels, the International Chamber of Commerce (ICC) said today.
“Trade is the lifeblood of the global economy and the world needs more of it at this critical moment, not less,” said ICC Chairman Victor K. Fung. “The G20 summit in London provides the perfect opportunity for the international community to reassert its confidence in the multilateral trading system, which spurred the phenomenal economic growth of recent years and pulled hundreds of millions of people out of extreme poverty.
At this time of world crisis we call on the G20 leaders to harness the political will to adopt policies ensuring job creation and long-term economic growth”, Mr Fung added.
ICC said the need for a credible monitoring system to combat protectionism was underlined by a recent World Bank study showing that since the G20 Summit in Washington last November, 17 of the G20 countries have adopted 47 measures restricting trade. Increases in tariff and non-tariff barriers as well as discriminatory public procurement policies, for example, require careful monitoring.
World trade depends heavily on trade credit, which has all but collapsed during the current financial crisis, effectively throttling the flow of goods. A new survey by the ICC Banking Commission shows overall decreases of more than 40 percent in both trade credit volume and value.
You can download a complete version of the survey from http://www.ebsi.ie/icc_survey.pdf