(Dalia Gebrial – Trade & Export Finance)
A lack of capacity in the financial sector is severely impacting the trading potential of poor countries, says Roberto Azevêdo, the sixth director general of the World Trade Organisation (WTO).
Citing that up to 80% of global trade is supported by a form of financing or credit insurance, Azevêdo argues that a lack of access to the international financial system is limiting the ability of poorer countries – with significant potential – to make use of simple instruments such as letters of credit, thereby impacting the potential of a its trading ability.
Whilst the supply of trade finance has returned to near-normal levels since the financial crisis in major markets, this is not the same for poorer countries, Azevêdo do argues in a column written for Inter Press Agency. Indeed, it may have diminished. Click here to read more.