CBI Supporting Export Growth Through B20 Joint Paper
According to the latest reports, the CBI has shown its positive concern to a B20, the Business at OECD (BIAC), and the International Organization of Employers joint paper on further developing access to trade finance, which holds a crucial role in supporting organizations understanding their export goals and pushing endeavors towards development.
What is the B20?
The Business Twenty (B20) is the official business community engagement forum consisting of a Group of Twenty (G20) developed economies. As the representative of the private sector to the G20, the B20 demonstrates the worldwide business community across all G20 member states and all financial areas. This paper created under the Italian B20 Presidency will subsequently establish a significant framework to advance policy improvement in this significant region.
What Is Covered In The Paper?
The paper covers three recommendations to develop access to trade finance, creating on the idea of a Global Value Chain (GVC) passport to support SMEs developed under the B20 Saudi Arabia Presidency last year:
1. Encourage the Legal Entity Identifier (LEI) as a globally unique identifier standard to provide more successful counterparty proof and check on a worldwide scale.
2. Lawfully perceive computerized documentation to empower optimal usage of digital documents in trade finance operations, assisting with eliminating friction, as well as financial and environmental expenses.
3. Strengthen digital technologies by creating clear security standards and least requirements to make digital platforms reliable ecosystems for Global Value Chains (GVCs) applied efficiently across jurisdictions.
Gianluca Riccio, Managing Director, Lloyds Banking Group, a CBI representative at BIAC, and Vice-Chair of Business at OECD Finance Committee was the lead creator on the paper and explained that “the covered initiatives can bring immense benefits on their own, but their blend could essentially provide access to trade finance, and so help private sector operations to develop trade and encourage growth; it can act as a significant contributor for the economy.”
It is estimated that these covered actions will assist cross-border trade and support more organizations to access trade finance and opt for growth finance. The CBI stays in dynamic conversation with the legal authorities of UK and UK Export Finance on these ideas, operating with financial services firms, expert trade associations, and businesses across the entire economy to further this plan.