Press release

The International Chamber of Commerce: the governments (and G20 especially) have to release the trade
Prague, 27th October 2011: The Prague Congress Centre hosted today the third annual conference of International Chamber of Commerce in the Czech Republic (ICC Czech Republic) - East-West Business Forum 2011. This year, the conference was organized on the occasion of the 24th Biennial Congress on the Law of the World under the auspices of the World Jurist Association. The main aim of this event was to introduce the competitiveness strategy of the Czech Republic as well as its new export strategy and to present business and investment opportunities in Latin America and some Asian territories. Partners of East-West Business Forum 2011 were Ministry of Industry and Trade of the Czech Republic and World Jurist Association.

The key business and finance challenges, which is now in the middle of the global economic crisis the world economy facing from east to west to east, are being discussed by the International Chamber of Commerce through ICC G20 Advisory Group - an advisory body to the group's largest economies in the world. Before the upcoming G20 summit in Cannes, ICC G20 Advisory Group creates policy through a series of regional consultations in the following areas: trade and investment, financial regulations, combating corruption, the international monetary system, fluctuations in commodity prices and the "green growth".

"Trade will play a key role in tackling the jobs crisis," said Jean-Guy Carrier, the secretary general of the ICC. “Economic growth depends largely on the capacity of G20 governments to improve the conditions for international trade. However, what we’re seeing is that protectionist measures are growing within the G20. This trend must be reversed and more needs to be done to dispel the myths that trade results in job losses. Trade is a dynamic process that contributes to job creation,” he said.

The reliable and cost-effective financing and guarantees for companies wishing to import or export commodities, goods and capital are crucial for maintaining the domestic and foreign trade. Foreign trade is a key to global economic growth. The outlook on the risks of defaults in trade and finance were revealed in the ICC report Global Risks – Trade and Finance, issued on the occasion of a major ICC Banking Commission meeting taking place in these days in Beijing. The rules set by bank regulators impose capital requirements on trade finance are disproportionately high - they braise the international trade and have a negative impact on economic growth. Banks should not be afraid of the foreign trade financing because it is low risk and it should not be overshooting the individual governments, according to a report issued yesterday.The report was based on analysis of the ICC Trade Finance Register, the most comprehensive dataset available on the market. It contains data from major international banks reflecting a minimum of 60-65% of traditional global trade finance activity, worth about USD2-2.5 trillion.

Directly from ICC Banking Commission meeting in Beijing, Prof. Michal Mejstrik, Chairman of ICC CR, comments relatively low risk trade finance and its high usefulness for the lagging development of international trade itself as follows: "Foreign trade is irreplaceable for the Czech Republic. The experience of Czech exporters here in China shows that the Czech Republic is a small economy is not necessarily a disadvantage. We will be well if we get ahead marginally in many markets with an effective export. Everyone welcomes reasonable enrichment of dominant players time to time. "

Global Risks - Trade Finance 2011 (click here to download a copy) is a useful for both policy-makers and senior executives in financial institutions around the world. It will enable institutions to better understand the level of risks involved in different trade finance products and allow bankers to benchmark their activities in a more rigorous fashion.

Prague, 27th October 2011