(Trade World News, Dubai, 12 December 2024) Algeria is positioning itself as a major force in trade insurance across Africa and the Arab-Muslim world, reflecting its commitment to fostering fair and dynamic international trade. Algeria’s ambitions align with its broader strategy to diversify exports beyond hydrocarbons. The Finance Minister underscored that Algeria views fair international trade as a strategic pillar for economic growth and an essential mechanism for achieving the Sustainable Development Goals (SDGs) by 2030. Meanwhile, a December 11-12 French summit conference on the future of economic relations between France and Arabic countries was jointly organized by the Arab-French Chamber of Commerce, the Union of Arab Chambers and the Federation of Small and Medium Enterprises (CPME), with the support of CCI France, the International Chamber of Commerce – France, Medef International, and Business France.
(Business Times, Colombo, 15 December 2024) The new management of the Sri Lanka Export Credit Insurance Corporation (SLECIC), while celebrating its 46th anniversary, has an onerous task ahead of reforming an institution that has been marred by corruption and malpractice for the past 12 years. A forensic audit, initiated at the instance of the Parliamentary Committee on Public Enterprises (COPE) in the previous Parliament is afoot to investigate the alleged financial mismanagement of the state-run corporation. An investigation is underway into the controversial payment of an insurance claim of over Rs. 400 million to a single exporter, which had been made in a manner contrary to standard procedures. The Treasury has conducted two additional inquiries, clearing some officers accused of assisting the General Manager in carrying out corrupt practices. However, COPE intervened, ensuring the General Manager’s compulsory leave and the forensic audit.
(Philadelphia Tribune, 22 November 2024) The EU, U.S. and other countries are hammering out a plan to throttle tens of billions of dollars of financial support for foreign oil and gas projects, weeks before President-elect Donald Trump moves into the White House. Negotiators are working toward landing a deal at the Organization for Economic Co-operation and Development gathering in Paris by Thursday, according to people familiar with the matter. An agreement would be a culmination of more than a year of effort to expand existing rules that prohibit member nations’ export-credit agencies from financing unabated coal projects. It’s an about-turn for the U.S., which had effectively stalled work on the broader fossil fuel restrictions for months amid concerns from the country’s Export-Import Bank. But with Trump taking office in two months, it’s a last-ditch bid to lock in a climate policy that environmental advocates say be difficult for the new administration to reverse while freeing up multibillion-dollar funds for global clean energy projects. The group’s members have a longstanding gentlemen’s agreement that effectively allows them to use export-credit agencies to give preference to domestic companies in international deals without running afoul of WTO rules. Member countries have an incentive to abide by the policies since they help ensure a level playing field. Restricting export-credit agency support for fossil fuels is viewed as crucial to meet global climate goals, a year after nearly 200 countries agreed to transition away from polluting energy sources. “There aren’t many policy tools that Trump can’t undo, and this is one of the few,” said Laurie van der Burg, Public Finance lead at Oil Change International. Oxfam America notes that: “A ‘Trump-proof’ climate deal of this magnitude is mission critical for the Biden administration — not only to secure its legacy on climate progress, but also help safeguard every community, both in the U.S. and globally, from damaging storms, heat waves, and rising seas. The climate crisis won’t stop for a climate denier in the White House, and this is the last chance for the current administration to stop billions in global handouts to fossil fuel corporations.” Nearly 300 green groups have urged Biden to block LNG expansion ahead of Trump.
(Kyive Independent, Kyiv, 6 November 2024) Chinese state-owned company Sinosure that insures export supplies against the risk of non-payment has begun to refuse to cooperate with Russian entrepreneurs, Russian newspaper Vedomosti reported on Nov. 5, citing four unnamed sources from importing companies. Trade between Russia and China has reportedly surged by 121% since 2021, underscoring Beijing’s role as Moscow’s economic lifeline. One Chinese supplier told a Russian importer that the company refused to insure their deal because of the nature of the exported goods. Since July, China has tightened export controls on military and dual-use products, the Moscow Times reported. Beijing has positioned itself as neutral in the ongoing war but has deepened economic ties with Russia and become Moscow’s leading source of dual-use goods, feeding the Russian defense industry.
(Barrons/AFP, Paris, 15 November 2024) French energy giant TotalEnergies, recipient of Italian (& French?) ECA funding, was aware of accusations of abuses committed by soldiers charged with protecting its gas site in Mozambique as early as 2021. “Complaints of extortion, disappearances and even violence leading to the deaths of two fishermen are recorded in quarterly social reports written by teams of Mozambique LNG,” TotalEnergie’s subsidiary in the country, according to Le Monde. The reports were sent to the Italian export credit agency SACE, from which an Italian NGO, ReCommon, and Le Monde obtained them under a right of access to information legislation. TotalEnergies used hired guards of the local affiliate of UK security firm G4S linked to a former liberation figure and ex-minister of security in the 1980s. ECA-Watch noted in 2016 that Korean, French, Italian and Chinese ECAs were set to play a key role in the financing of two LNG projects planned in the north of Mozambique despite widespread concerns about gross human rights violations by local authorities.
(Financial Times, London, 7 November 2024) Britain has agreed a £4bn air defence deal with Poland, the largest-ever export contract between the two countries, in the wake of Russia’s invasion of Ukraine. The UK will equip Polish forces with a ground-based air defence system capable of countering threats such as cruise missiles and fighter jets at ranges of more than 40km. The system, known as the Common Anti-Air Modular Missiles — Extended Range or CAMM-ER, is manufactured by European missile maker MBDA. MBDA is owned by BAE Systems and Airbus, both with a 37.5 per cent stake, with Italy’s Leonardo holding the balance.
(BNN Bloomberg, Toronto, 19 November 2024) Colombia is hurrying to land a deal with the US that would unlock the first tranches of cash for a $40 billion climate investment plan before Donald Trump takes office. If that push fails, then China could be an option. Susana Muhamad, Colombia’s climate minister, said she would go to Washington in the coming weeks to try and secure initial finance for an ambitious strategy to overhaul her country’s fossil fuel-based economy in favor of green investments. The outlook for the deal is now more complicated that Trump won this month’s election, she said. It’s a race against time for the package, which mimics the Just Energy Transition Partnerships (JETPs) that have been signed between rich and developing countries, with a goal of speeding up the move away from fossil fuels. Colombia is looking for as much as $10 billion to come from international financial institutions and developed countries. The move may set a template for other countries looking to transition away from fossil fuels. Colombia is just one of the countries currently scrambling to lock in climate commitments from the US in the two months before Trump takes office. At the Organization for Economic Co-operation and Development, the Biden administration is making a last-ditch push for an international agreement restricting export-credit agency financing of foreign oil and gas projects, supporting an initial proposal made by the European Union.
(Economic Times, Delhi, 21 November 2024) China is bolstering its export sector to counter potential tariff hikes by the incoming Trump administration. The nine-point plan includes expanded export credit insurance, increased financing for international trade, and support for cross-border e-commerce. These measures aim to mitigate the impact of anticipated US trade restrictions and maintain a favourable environment for Chinese exports.
(Mining.COM, Toronto, 21 November 2024) Troilus Gold (TSX: TLG) continues to receive the financial backing of global export credit agencies (ECAs), this time from Export Development Canada (EDC), to support the development of its copper-gold project in Quebec. On Thursday, the company announced a new letter of intent (LOI) from EDC for up to $300 million. This, together with the LOIs recently signed with the export credit agencies of Germany, Finland and Sweden, brings the total potential funding to $1.3 billion.
