Global supply chains have been and continue to be deeply impacted by the changes that have taken place in the last 12 months. From the Suez canal debacle which showed just how interconnected global supply chains truly are, to the current shortage of HGV drivers in the UK which poses a serious threat to supply lines to schools and hospitals, it is fair to say that the industry is, currently, facing significant challenges.
Is the industry at a breaking point? And what can we learn from these challenges? To help me explore these questions I have Sam Greenhalgh, UK Sales Director at Zencargo!
Full transcript: https://www.tradefinanceglobal.com/posts/podcast-s1-ep68-freight-crisis-hgv-driver-shortage-shipping-blockages-and-the-digital-future-of-freight/
Open account business - buy now, pay later - drives economic activity worldwide. And during times of volatility, uncertainty and of course, the pandemic, the need for solutions when it comes to receivables finance has never been more pronounced. With more market participants, the rise of non-bank lenders, a drive towards digitalising the open account ecosystem, there’s a lot going on.
So today, I’m joined by the two co-founders of WOA, Erik Timmermans and John Brehcist.
Full transcript: https://www.tradefinanceglobal.com/posts/podcast-s1-e67-woa-insights-receivables-rebounding-role-open-account-finance-post-covid-19/
Today we’re talking about some of the changes in trade in goods volumes, over the past 12 months. A lot has changed. We’ve had a commodity supercycle, with prices surging despite low volumes and amidst the pandemic, trade tensions continue all around the world.
World trade of goods has declined some 12% in the last year, representing a loss of $22 trillion USD of trade. Is it all doom and gloom for trade, or will we see a resurgence? Data also lies at the heart of this problem, with siloed or even duplicated trade data flows. Today I’m catching up with Trade Data Monitor’s Chief Economic Analyst, John Miller.
Full transcript: https://www.tradefinanceglobal.com/posts/podcast-s1-e66-chief-economist-insights-are-iron-ore-prices-propping-up-global-trade/
The ICC Banking Commission is one of the leading global rule-making bodies for the banking industry, producing universally accepted rules and guidelines which are vital in facilitating trade-led growth and development. From the Uniform Customs and Practice rules for documentary credits to rules on collections, demand guarantees and electronic rules, ICC’s rules underpin trillions of dollars worth of trade going through banks each year.
TFG’s editor, Deepesh Patel spoke with Lynn Ng, ICC’s new Banking Commission chair to discuss ICC’s new governance strategy moving forward and some of the key priorities for the Banking Commission.
Full transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-e65-icc-banking-commissions-lynn-ng-on-need-to-simplify-trade/
If sustainability and blockchain aren’t the biggest buzzwords in trade finance right now, it’s MLETR - the model law on electronic transferable records.
In this episode, we discussed the realities of implementing the United Nations Model Law on Electronic Transferable Records into local markets, an incredibly important advancement in accepting electronic signatures, with Sarah Green, Law Commissioner, English Law Commission.
Full Transcript Here: https://www.tradefinanceglobal.com/posts/podcast-s1-e64-electronic-documents-and-english-law-the-roadmap-to-digital-trade-documents/
Reporting Export Incidents, whether on a voluntary or involuntary basis, as well as investigating non-compliance in relation to trade finance operations, is of huge importance to multinationals, banks and policy makers. With that in mind, Spencer Chilvers, Head of Export Control Policy, Rolls-Royce to discuss export controls, the current sanctions environment, and the future, on Trade Finance Talks!
Full Transcript Here: https://www.tradefinanceglobal.com/posts/podcast-s1-e63-sanctions-rolls-royce-tactical-complexities-voluntary-reporting/
As part of Trade Finance Week by ICC Austria, we continued Trade Finance Week, with an African view on global trade.
For trade and supply chains in Africa, access to trade finance, the past 15 months have been incredibly tough for lives, livelihoods and economies, particularly in emerging developing markets. But trade must go on. If anything, the COVID-19 pandemic has accelerated many efforts to rethink the way we do trade. Is paper really necessary and is there a way that we can rethink trade documents? How has trade based financial crime fared in Africa, and what must we do to keep bad actors out of the trade system? And is this finally an opportunity for us to bring sustainability right to the forefront, as a business imperative, rather than just a nice to have? In this podcast, we talk AfCTFA, MANSA and the digital future of African trade, discussing trade digitisation, risk and compliance and sustainability.
Featuring:Eleonore Treu, ICC AustriaKwabena Ayirebi, AfreximBankIsaac Mahanke, Standard Bank
Full transcript here: https://www.tradefinanceglobal.com/posts/video-africa-focus-trade-digitisation-trade-finance-week-2021/ and here: https://www.tradefinanceglobal.com/posts/video-africa-focus-sustainable-trade-trade-finance-week-2021/
By the end of 2021, it’s anticipated that these rates will be discontinued, transitioning to the Sterling Overnight Index Average, or SONIA for short, and, for US Dollar benchmarks, the Secured Overnight Financing Rate, SOFR). But what does this mean for trade finance, trade finance documents such as Master Participation Agreements, products, and what are the current recommendations?
Full transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-e61-libor-transition-trade-finance/
Trade finance has a significant role to play in sustainable development and ESG, which extends to addressing global challenges around climate change, human rights and biodiversity.
The banking industry is certainly making progress towards their sustainability mandates, which is no longer a ‘nice to have’, rather, a business imperative. But if we are to jointly work towards the Paris Agreement and the UN Sustainable Development Goals, raising truly understanding the benefits of sustainable trade assets, understanding the appetite from the investment community, and sharing best in class practices that are being applied locally and globally is critical.
Digitalization often takes over conversations when it comes to making trade more efficient. It’s well documented that trade is an incredibly paper-heavy, inefficient, unsustainable business right now, but the insurmountable task of ‘digitizing trade’ is rather complex.
Full transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-e59-bring-back-paper-documents-is-the-document-the-missing-part-of-digital-trade-puzzle/
ESG. Environmental, Social and Governance. Three words we hear more and more. But what does it actually mean? Both corporates and consumers are focusing on environmental and sustainability practices when making financial decisions. Consumers are demanding ethically and sustainably sourced products, and it’s leading to questions around the transparency of global value chains. As businesses look towards ESG factors in their trade finance decisions, we’re here today discussing whether financial instruments in trade can address these concerns.
Full transcript here: https://www.tradefinanceglobal.com/posts/podcast-barclays-s1-e58-can-green-bonds-and-indemnities-reduce-environmental-impact/
We take a dive into the world of Letters of Credit (LCs) - non-structured, unfunded trade finance products - some of the essential tools in cross-border trade transactions. An LC is a payment undertaking that a financial institution issues on behalf of a buyer. There are many different types, and in this podcast, TFG gets an overview on Commercial Letters of Credit and Standby Letters of Credit (SBLCs).
Full podcast and transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-e57-baft-standby-letters-of-credit-sblc/
In this podcast, as part of our UK trade series, we focus on 3 themes: what trade relationships in a post-Brexit world actually means for business, the role of trade when it comes to post-pandemic economic recovery, and the importance of international cooperation and multilateralism when it comes to boosting global trade.
On the 1st January 2021, the UK-EU Trade and Cooperation Agreement (TCA) came into effect, but there are many loose ends, and the transition is not yet complete. We discuss this, as well as the UK's independent trade agenda with Andy Burwell, Director for International Trade and Investment at the CBI.
Read the transcript here: https://www.tradefinanceglobal.com/posts/voice-of-the-cbi-what-is-the-uks-independent-trade-agenda/
Japan is the third-largest economy in the world, and one of the most open economies with 4% of global GDP. Once perceived a difficult market to enter, it has, over the past 30 years, grown to be a global powerhouse, from automotives and agriculture, to digital trade and innovation.
Today’s podcast focuses on the Free Trade Agreement, FTA with Japan, more specifically referred to as the Comprehensive Economic Partnership Agreement, Or CEPA. The UK and Japan are major investors in each other’s economies, ranking fifth and sixth respectively for inward foreign direct investment.
Full transcript here: https://www.tradefinanceglobal.com/posts/cepa-or-cptpp-an-overview-of-uk-japan-trade/
TFG heard from ICC Banking Commission experts who are taking a step beyond the hype of sustainable trade finance, and looking at the role of multilateral development banks (MDBs) and development finance institutions (DFIs) on what sustainable trade finance means and what the industry must do.
There’s no doubt that Covid-19 has also changed appetite here. Companies are under pressure to see what’s happening right across their supply chains, and tracing any items in them – from field to factory to customer (and beyond). Integrating any tools that can support resilient supply chains can also underpin sustainability efforts.
Access the resources and more information about the initiatives discussed in this podcast here: https://www.tradefinanceglobal.com/posts/podcast-s1-e54-podcast-multilateral-perspective-a-roadmap-for-sustainable-trade-finance/
One year ago, FCI members gathered in Ho Chi Minh City, Vietnam, at FCI’s Annual Conference. Reflecting back, the 2018 factoring volumes stood at 2.7tn euros. For 2019, the volumes increased once again, by just over 5% YoY, at 2.9tn euros.
What were the biggest challenges to the industry in 2019? 2019 saw extreme economic and political volatility, the rise in nationalism and protectionism, and of course, this led to a general slowdown in global trade.
This was all before the coronavirus pandemic. Fast forwarding 12 months, the geopolitical and macroeconomic factors continued, even heightened, coupled with the crippling effects of the Covid-19 crisis.
The Receivables finance industry now plays a critical role in recovery and the turn towards eventual growth in global trade, particularly by continuing to finance SMEs during this challenging period. TFG’s Deepesh Patel caught up with FCI’s Chairman, Mr. Patrick de Villepin, and FCI Vice Chairman, Mrs. Daniela Bonzanini, joining virtually at the FCI Annual Conference.
In this podcast we heard from FCI on:The legality of delivering a Dutch based association’s Annual Conference onlineResponse from the factoring industry - how the pandemic has affected factoring volumes amongst FCI and FCI membersFactoring in 2019 recap - factoring volumes grew 5% last year to just under 3 billion euros, also reaching 4.05% global penetration, a rise from the previous yearThe likely impact of factoring volumes as a result of Covid-19The role of factoring in a real economy crisisThe Bangladesh Policy on Factoring and FCI’s involvementThe UNIDROIT Model Law on Factoring How can governments support and backstop the credit insurance market, why is this important, and what success have we seen so far?What is edifactoring and how does it help factors?Short- to medium-term focus for FCI
Full transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-e53-fci-views-from-the-board-factoring-and-receivables/
"Culture eats strategy for breakfast- which recognises the fact that strategies become extinct very quickly when faced with a pandemic, so it’s really important that the culture of a business or a treasury team, in this case, is one of agility and resilience." - Caroline Stockmann
What then makes a good and effective leader?
TFG's Deepesh Patel heard from Caroline Stockmann, Chief Executive, Association of Corporate Treasurers on lessons learned from the Covid-19 pandemic on building resilience in treasury.
Trade is a force good, but with the current Covid-19 pandemic, the World Trade Organization facing its biggest challenges yet, and a turn towards protectionism in many economies, the current trade outlook is unsettling, and uncertain.
The UK’s trading regime after the end of the transition period yields much uncertainty and potential tariff reversals in just a few months. Today we’re talking about the power of good trade policy, how trade negotiations are done, and how to mitigate the negative effects of trade.
We heard from Professor L Alan Winters, Director of UKTPO at the University of Sussex.
Full podcast and transcript here: https://www.tradefinanceglobal.com/posts/podcast-s1-e51-uktpo-when-trade-goes-wrong-the-bad-and-ugly-of-trade-l-alan-winters/
The United States and the European Union are the two most integrated trading blocks in the world, having increased their economic interdependence with the linkages in global supply chains, e-commerce, and investment.
The trade flows between the two partners account for a third of world trade flows, totalling more than £1 trillion in 2019, and the two account for more than half of global foreign direct investment.
Yet this triangle of trade has gone through a lot recently. With the UK leaving the EU, the current political stance of the US administration, and the increasing role of China in the global economy changes the dynamics of these three trading blocs, and the position of the UK post-Brexit.
So what’s next for this powerful trio? TFG heard from Elitsa Garnizova, Senior Project Manager and Researcher, London School of Economics on the current updates and what we can expect in this UK-EU-US economic relationship.
Full article here: https://www.tradefinanceglobal.com/posts/podcast-s1-e50-the-transatlantic-trade-love-triangle/
The supply chain finance technique of payables finance is regarded by the industry as a useful and beneficial tool for both buyers and suppliers. Yet recently, it’s come under significant scrutiny by the press, financial Ombudsman, and various regulators around the world. Add to this, the financial distress wrought by the Covid-19 pandemic, with SMEs tending to be the first to feel the effects of financial crises. Peter Mulroy, Secretary General of FCI, Stacey Facter, SVP of Trade Products at BAFT, and Christian Hauscher, Chairman of the Global Supply Chain Finance Forum and Product Manager for Trade and SCF EMEA at Deutsche Bank, discussed why payables finance remains a force for good.
Full article and report here: https://www.tradefinanceglobal.com/posts/podcast-s1-e49-misuse-of-supply-chain-finance-worrying-but-not-widespread-says-gscff/