India Urges G20 to Take Action on Trade Finance
Commerce Secretary Sunil Barthwal emphasized the need for member countries to work together to narrow the trade finance gap in his opening remarks at Tuesday’s inaugural meeting of the G20 TIWG under India’s Presidency. The deficit in trade financing is growing. At a conference on trade finance hosted by the Export Credit Guarantee Corporation of India (ECGC) and the EXIM Bank of India, Mr.Barthwal made the following remarks. He mentioned that the gap had grown from 1.5 trillion dollars in 2018 to 2 trillion dollars in 2019, per ADB’s estimates.
To deepen the discussion of thoughts in the field of trade finance, a conference was held at which representatives from the member nations, as well as business and academic specialists from across the world, participated. The panellists explored the unpredictable global trade landscape and the potential roles of banks and export credit bureaus in identifying gaps and addressing trade finance problems. The Secretary of Commerce noted that it was a good time to talk about challenges in trade financing, and he stressed the significance of arriving at effective solutions.
The importance of speeding up the digitalization of trade finance and embracing fintech solutions to increase trade financing access was also emphasized. The Ministry of Commerce issued a statement saying, “Digitalization of international commerce is perhaps a viable option towards attaining cost savings in trade financing.” The report noted that international collaboration in harmonizing definitions, standards, and cross-border digital data sharing was recognized as the obstacle to be solved in digitalizing commerce. The speakers advocated for a global push towards paperless international trade by urging all countries to pass necessary laws over the next few years.
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