Committee on Trade and Development - Aid for Trade - Workshop on Aid for Trade and Trade Finance - Background note by the Secretariat

World Trade Organization WT/COMTD/AFT/W/33 8 May 2012 (12-2444) Committee on Trade and Development Aid for Trade WORKSHOP ON aid for trade and trade finance Background Note by the Secretariat Summary This note is intended as a background note to inform discussion at the workshop on Aid for Trade and Trade Finance to be held on 15 May 2012; it is not an exhaustive analysis of this issue. Access to affordable financing is essential to facilitate trade. Between 80 to 90 per cent of global trade involves some form of financing, normally of a short-term nature. Trade financing is normally provided on commercial terms by both private and public institutions. Some countries face "structural" problems in accessing financing, for reasons such as poorly developed banking sectors, perceived credit risk and limited penetration of global markets, in particular through supply chains. Particular companies may also face specific challenges in access, notably micro-