Facts and figures on a global scale

Trade finance allows companies to mitigate the risks associated with importing or exporting goods and services by bridging the time-lag in international transactions between the manufacture of goods, their shipment and the receipt of payment, thereby permitting world trade to flow in a predictable and secure manner, which has advantages for companies and countries.

The scale of international trade is difficult to comprehend. Some 90% of all trade takes place across the world’s oceans, involving more than 500-million containers on 89,000 maritime vessels each year. These goods crisscrossing the globe to hundreds of ports in international supply chains can tempt counterfeiters to ship their products alongside

●

legitimate cargo.

It is estimated counterfeits amount to 2.5% of the total value of global trade, while the global economic value of counterfeiting and piracy could reach $2.3-trillion by 2022. Customs plays a key role in differentiating between legitimate and illicit goods, while putting in place policies to make trade as speedy as possible for law-abiding firms.

Customs can sometimes be thought of as the taps that control the intensity of trade. Trade has immense potential to fuel inclusive economic growth and development, and customs policies play a significant role in boosting trade flows. Making customs processes faster and less cumbersome (think less paperwork, fewer long queues) can boost economic activity, creating jobs and growth.

● ●

Last year, a global deal on speeding up customs and border processes was ratified — the World Trade Organisation’s Trade Facilitation Agreement (TFA). It is estimated that 20-million jobs could be created by implementing the TFA, 18-million of which would be in developing countries.

When customs processes are complicated, it’s small business that loses out the most. Entrepreneurs and small businesses often lack the financial and human resources that large companies have to comply with onerous border procedures. This, in turn, makes it more difficult to compete. By making processes transparent and less costly, customs authorities can grant small business a level playing field, for the benefit of all.

● ●