ITFC inks US$100mn financing agreement to aid Turkish agriculture supply chains


Our privacy commitments

This Privacy Policy outlines the information we may collect about you in relation to your use of our websites, events, related publications and services (“personal data”) and how we may use that personal data. It also outlines the methods by which we and our service providers may (subject to necessary consents) monitor your online behaviour to deliver customised advertisements, marketing materials and other tailored services. This Privacy Policy also tells you how you can verify the accuracy of your personal data and how you can request that we delete or update it.

This Privacy Policy applies to all websites operated by Exporta Publishing & Events Ltd (as indicated on the relevant website).

This privacy statement does not cover the activities of third parties, and you should consult those third-party sites’ privacy policies for information on how your data is used by them.

Any questions regarding this Policy and our privacy practices should be sent by e-mail to privacy@gtreview.com or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

Who are we?

Established in 2002 and with offices in London and Singapore, Exporta Publishing & Events Ltd is the world’s leading trade and trade finance media company, offering information, news, events and services for companies and individuals involved in global trade.

Our principal business activities are:

  • Business-to-Business financial publishing. We provide a range of products and services focused on international commodities, export, supply chain and trade finance markets including magazines, newsletters, electronic information and data
  • Organisers of seminars, conferences, training courses and exhibitions for the finance industry

Exporta Publishing & Events Ltd is a company registered in the United Kingdom with company number 4407327 | VAT Registration: 799 1585 59

Data Protection Policy

This Data Protection Policy explains when and why we collect personal information about people who visit our website, how we use it, the conditions under which we may disclose it to others and how we keep it secure.

Why do we collect information from you?

Our primary goal in collecting personal data from you is to give you an enjoyable customised experience whilst allowing us to provide services and features that will meet your needs.

We collect certain personal data from you, which you give to us when using our Site and/or registering or subscribing for our products and services. However, we also give you the option to access our Sites’ home pages without subscribing or registering or disclosing your personal data.

We also collect certain personal data from other group companies to whom you have given information through their websites (including, by way of example, Exporta Publishing & Events Ltd and subsidiaries, in accordance with the purposes listed below). Should we discover that any such personal data has been delivered to any of the Sites, we will remove that information as soon as possible.

Why this policy exists

This Data Protection Policy ensures Exporta Publishing & Events Ltd:

  • Complies with data protection law and follow good practice
  • Protects the rights of staff, customers and partners
  • Is open about how it stores and processes individuals’ data
  • pretexts itself from the risk of a data breach

We may change this Policy from time to time so please check this page occasionally to ensure that you’re happy with any changes. By using our website, you’re agreeing to be bound by this Policy.

Data protection law

The Data Protection Act 1998 described how organisations – including Exporta Publishing & Events Ltd – must collect, handle and store personal information. These rules apply regardless of whether data is stored electronically, on paper or on other materials. To comply with the law, personal information collected must be stored safely, not disclosed unlawfully and used fairly.

The Data Protection Act is underpinned by eight important principles. These say that personal data must:

  • Be processed fairly and lawfully
  • Be obtained only for specific, lawful purposes
  • Be adequate, relevant and not excessive
  • Be accurate and kept up to date
  • Not be held for any longer than necessary
  • Processed in accordance with the rights of data subjects
  • Be protected in appropriate ways
  • Not be transferred outside the European Economic Area (EEA), unless that country of territory also ensures an adequate level of protection

How do we collect information from you?

We obtain information about you when you use our website, for example, when you contact us about products and services, when you register for an event, register to receive eNewsletters, subscribe or register for a trial to our GTR magazine/website.

 Types of Personal Data Held and its Use

1.      Customer Services and Administration

On some Sites, Exporta Publishing & Events Ltd collects personal data such as your name, job title, department, company, e-mail, phone, work and/or home address, in order to register you for access to certain content, subscriptions and events. In addition, we may also store information including IP address and page analytics, including information regarding what pages are accessed, by whom and when.

This information is used to administer and deliver to you the products and/or services you have requested, to operate our Sites efficiently and improve our service to you, and to retain records of our business transactions and communications. By using the Sites and submitting personal information through the registration process you are agreeing that we may collect, hold, process and use your information (including personal information) for the purpose of providing you with the Site services and developing our business, which shall include (without limitation) the purposes described in the below paragraphs.

2.      Monitoring use of our Sites

Where, as part of our Site services, we enable you to post information or materials on our Site, we may access and monitor any information which you upload or input, including in any password-protected sections. Subject to any necessary consents, we also monitor and/or record the different Sites you visit and actions taken on those Sites, e.g. content viewed or searched for. If you are a registered user (e.g. a subscriber or taking a trial), when you log on, this places a cookie on your machine. This enables your access to content and services that

are not publicly available. Once you are logged on, the actions you take – for example, viewing an article – will be recorded (subject to any necessary consents). We may use technology or a service provider to do this for us. This information may be used for one or more of the following purposes:

  • to fulfil our obligations to you;
  • to improve the efficiency, quality and design of our Sites and services;
  • to see which articles, features and services are most read and used
  • to track compliance with our terms and conditions of use, e.g. to ensure that you are acting within the scope of your user licence;
  • for marketing purposes (subject to your rights to opt-in and opt-out of receiving certain marketing communications) – see paragraph 3 below;
  • for advertising purposes, although the information used for these purposes does not identify you personally. Please see paragraph 5 below for more details;
  • to protect or comply with our legal rights and obligations; and
  • to enable our journalists to contact and interact with you online in connection with any content you may post to our Sites.

Please see paragraph 5 below for more information on cookies and similar technologies and a link to a page where you can turn them on or off.

3.      Marketing

Some of your personal data collected under paragraphs 1 and 2 above may be used by us to contact you by e-mail, telephone and/or post for sending information or promotional material on our products and/or services and/or those of our other group companies.
We give you the opportunity to opt-out of receiving marketing communications. Further detail can be found on the applicable Site and in the footer of each marketing communication sent by us, our group companies or service providers. See also “Consents and opt-outs” section below.
We will not share your information with third parties for marketing purposes.

4.      Profiling

We may analyse your personal information to create a profile of your interests and preferences so that we can contact you with information relevant to you.

5.      Cookies and similar technologies

All our Sites use cookies and similar technical tools to collect information about your access to the Site and the services we provide.

What is a cookie?

When you enter some sites, your computer will be issued with a cookie. Cookies are text files that identify your computer to servers. Cookies in themselves do not identify the individual user, just the computer used.

Many sites do this whenever a user visits their site in order to track traffic flows, recording those areas of the site that have been visited by the computer in question, and for how long.

Users have the opportunity to set their computers to accept all cookies, to notify them when a cookie is issued, or not to receive cookies at any time. Selecting not to receive means that certain personalised services Exporta Publishing & Events Ltd offers cannot then be provided to that user.

 

Why do we use cookies?

  1. Log In – Where we provide log in mechanisms for site users a cookie is created at login and for the duration of the session. Each cookie contains a unique reference number only (no personal information) which is used to confirm you are authorised.
  2. Analytics – To allow us to keep track of traffic to our website we use cookies. The cookies simply tell us if you have previously visited our website so we can get more accurate figures for New vs Returning visitors.

Find and control your cookies

All of the major browser providers offer advice on setting up and using the privacy and security functions for their products. If you require technical advice or support for a specific browser/version please contact the provider or visit their website for further details:
www.microsoft.com / www.mozilla.com / www.apple.com
/ www.opera.com / www.aol.com / www.netscape.com
/ www.flock.com / www.google.com.

We may use cookies to:

  • remember that you have used the Site before; this means we can identify the number of unique visitors we receive to different parts of the Site. This allows us to make sure we have enough capacity for the number of users that we get and make sure that the Site runs fast enough
  • remember your login session so you can move from one page to another within the Site;
  • store your preferences or your user name and password so that you do not need to input these details every time you visit the Site;
  • customise elements of the layout and/or content of the pages of Site for you;
  • record activity on our Sites so that we understand how you use our Sites enabling us to better tailor our content, services and marketing to your needs;
  • collect statistical information about how you use the Site so that we can improve the Site; and
  • gather information about the pages on the Site that you visit, and other information about other websites that you visit, so as to place you in a “market segment”. This information is only collected by reference to the IP address that you are using, but does include information about the county and city you are in, together with the name of your internet service provider.

Most web browsers automatically accept cookies but, if you prefer, you can change your browser to prevent that, or to notify you each time a cookie is set. You can also learn more about cookies in general by visiting www.allaboutcookies.org which includes additional useful information on cookies and how to block cookies using different types of browser. Please note however, that by blocking, deleting or turning off cookies used on the Site you may not be able to take full advantage of the Site.

6.      E-mail tracking

E-mail tracking is a method for monitoring the e-mail delivery to those subscribers who have opted-in to receive marketing e-mails from GTR, including GTR Africa, GTR Asia, GTR Americas, GTR Europe, GTR Mena, GTR eNews, Third party e-mails and GTR Ventures.

Why do we track e-mails?


So that we can better understand our users’ needs, we track responses, subscription behaviour and engagement to our e-mails – for example, to see which links are the most popular in newsletters. They enable us to understand the consumers journey through metrics including open rate, click-through rate, bounces and unsubscribes. Any other purposes for which Exporta Publishing & Events Ltd wishes to use your personal data will be notified to you and your personal data will not be used for any such purpose without obtaining your prior consent.

How do you track GTR eNewsletters?

To do this, we use pixel GIFs, also known as “pixel tags” – these are small image files that are placed within the body of our e-mail messages. When that image is downloaded from our web servers, the e-mail is recorded as being opened. By using some form of digitally time-stamped record to reveal the exact time and date that an e-mail was received or opened, as well the IP address of the recipient.

7.      Consents and opt-outs

You can give your consent to opt-out of all or any particular uses of your data as indicated above by:

  • Indicating at the point on the relevant Site where personal data is collected
  • Informing us by e-mail, post or phone
  • Updating your preferences on the applicable Site or eNewsletter (unsubscribe and preference options are available in the footer of each eNewsletter)

To turn cookies and similar technologies on and off, see the information in paragraph 5 above.
Any questions regarding consents and opt-outs should be sent by e-mail to privacy@gtreview.com or by writing to Data Protection Officer at, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, United Kingdom. Alternatively, you can telephone our London headquarters at +44 (0) 20 8673 9666.

8.      Disclosures

Information collected at one Site may be shared between Exporta Publishing & Events Ltd and other group companies for the purposes listed above.

We may transfer, sell or assign any of the information described in this policy to third parties as a result of a sale, merger, consolidation, change of control, transfer of assets or reorganisation of our business.

9.      Public forums, message boards and blogs

Some of our Sites may have a message board, blogs or other facilities for user generated content available and users can participate in these facilities. Any information that is disclosed in these areas becomes public information and you should always be careful when deciding to disclose your personal information.

10.  Data outside the EEA

Services on the Internet are accessible globally so collection and transmission of personal data is not always limited to one country. Exporta Publishing & Events Ltd may transfer your personal data, for the above-listed purposes to other third parties, which may be located outside the European Economic Area and/or with a different level of personal data protection. However, when conducting transfers, we take all necessary steps to ensure that your data is treated reasonably, securely and in accordance with this Privacy Statement.

Who has access to your information?

Confidentiality and Security of Your Personal Data

We are committed to keeping the data you provide us secure and will take reasonable precautions to protect your personal data from loss, misuse or alteration.

However, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our Site; any transmission is at your own risk. Once we have received your information, we will use strict procedures and security features described above to try to prevent unauthorised access.

We have implemented information security policies, rules and technical measures to protect the personal data that we have under our control from:

  • unauthorised access
  • improper use or disclosure
  • unauthorised modification
  • unlawful destruction or accidental loss

All our employees, contractors and data processors (i.e. those who process your personal data on our behalf, for the purposes listed above), who have access to, and are associated with the processing of your personal data, are obliged to keep the information confidential and not use it for any other purpose than to carry out the services they are performing for us.

Responsibilities

Everyone who works for or with Exporta Publishing & Events Ltd has some responsibility for ensuring data is collected, stored and handled appropriately. Each team handling personal data must ensure that it is handled and processed in line with this policy and data protection principles. However, the following people have key areas of responsibility.
The board of directors is ultimately responsible for ensuring that Exporta Publishing & Events Ltd meets its legal obligations.

Name of Data Controller

The Data Controller is Exporta Publishing & Events Ltd. Exporta Publishing & Events Ltd is subject to the UK Data Protection Act 1998 and is registered in the UK with the Information Commissioner`s Office.

How to access, update and erase your personal information

If you wish to know whether we are keeping personal data about you, or if you have an enquiry about our privacy policy or your personal data held by us, in relation to any of the Sites, you can contact the Data Protection Officer via:

  • By writing to this address: Data Protection Officer, Exporta Publishing & Events Ltd, 4 Hillgate Place, London, SW12 9ER, UK
  • Telephone: +44 (0) 20 8673 9666
  • E-mail: privacy@gtreview.com

Upon request, we will provide you with a readable copy of the personal data which we keep about you. We may require proof of your identity and may charge a small fee (not exceeding the statutory maximum fee that can be charged) to cover administration and postage.

Exporta Publishing & Events Ltd allows you to challenge the data that we hold about you and, where appropriate in accordance with applicable laws, you may have your personal information:

  • erased
  • rectified or amended
  • completed

Disclosing data for other reasons

In certain circumstances, the Data Protection Act allows personal data to be disclosed to law enforcement agencies without the consent of the data subject. Under these circumstances, Exporta Publishing & Events Ltd, will disclose requested data. However, the Data Controller will ensure the request is legitimate, seeking assistance from the board and from the company’s legal advisors where necessary.

Changes to this Privacy Statement

We will occasionally update this Privacy Statement to reflect new legislation or industry practice, group company changes and customer feedback. We encourage you to review this Privacy Statement periodically to be informed of how we are protecting your personal data.

Providing information

Exporta Publishing & Events Ltd aims to ensure that individuals are aware that their data is being processed, and that they understand.

  • How the data is being used
  • How to exercise their rights

To this end, the company has a privacy statement, setting out how data relating to individuals is used by the company. This is available on request and available on the company’s website.

Review of this policy

We keep this Policy under regular review. This Privacy Statement was last updated in April 2018.



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USDA expands promotional funding for US products



WASHINGTON — The Deputy Agriculture Secretary Xochitl Torres Small announced on Aug. 5 that the US Department of Agriculture is investing an additional $300 million in the Regional Agricultural Promotion Program (RAPP) to help grow export markets for US products.

RAPP was launched last year when the USDA received $1.2 billion from the Commodity Credit Corp. to establish the program and help exporters expand beyond established markets like China, Mexico, Canada, which together account for nearly half of all current export sales.

“Access to international markets supports US farmers at home and food security throughout the world,” Torres Small said in her announcement.

During the first round of RAPP funding in May, $300 million were awarded to 66 US organizations. More than $1 billion in proposals were filed.

“Given the importance of exports in supporting farm income and rural economic development, we’re delighted to be able to make an additional $300 million available this year,” Torres Small said.

For this second round of funding, interested organizations have until Oct. 4 to apply. USDA anticipates that allocations will be announced before the end of 2024.

As with the first round of RAPP funding, USDA is again setting aside $25 million specifically for activities in Africa, which has some of the fastest-growing economies but the lowest levels of US export market investment of any region in the world.

Upon Torres Small’s announcement, the US Meat Export Federation (USMEF) released a statement noting the benefits RAPP brings to meat exports.

“The first tranche of RAPP funding is already at work identifying and developing new opportunities globally for US pork, beef and lamb, and USMEF is excited to see that implementation of the program continues to move forward,” said Dan Halstrom, USMEF president and chief executive officer. “RAPP’s emphasis on market diversification is especially critical, as it allows for dedication of resources in markets where demand has only scratched the surface. In this respect, RAPP is an excellent complement to USDA’s Market Access Program and Foreign Market Development Program, as well as the checkoff investments of our industry partners, which allow USMEF to expand and defend market share in both emerging and well-developed destinations.”



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Adapting to changing compliance and regulation in the age of data and digitalisation


Estimated reading time: 6 minutes

Data is king, especially as the industry slowly but surely embraces the move towards full digitalisation.

Increased digitalisation, and the mountains of data that comes alongside the transition also requires additional regulation and collaboration.

With this in mind, TFG spoke to Jonathan Dixon, Head of Surveillance at eflow Global.

1. Please give a quick introduction for our readers. Who are you, what is your background?

I’m Jonathan Dixon and I’m Head of Surveillance at eflow Global. In the first part of my career, I worked in business analysis, focusing on data and management information (MI). The second half of my career has been dedicated to trade surveillance. I’ve had the opportunity to work with a range of institutions, including tier-one banks, consultancies, crypto exchanges, and vendors.

Throughout these years, I’ve spearheaded the implementation of trade surveillance systems, the development of comprehensive risk assessments, and building and leading specialist teams. 

2. How does eflow Global utilise technology to enhance regulatory compliance and operational efficiency for its clients?

I would say there are several facets to this question. At a high level, we offer trade surveillance, eComms surveillance, best execution, and transaction reporting solutions to fulfil the regulatory obligations that firms face under the likes of the FCA, SEC and FINRA, in addition to specific regulations such as MAR, EMIR Refit and MiFID II, to name just a few.

Our utilisation of technology is relatively novel, particularly through highly configurable, contextual parameterisation. This means we don’t just look at parameters related to potential market abuse, but also the surrounding context. For example, instead of only examining a price movement in a given instrument, we consider the instrument’s volatility over the previous 90 days. This helps us determine if the movements in question are significant relative to their typical behaviour.

Our technology also offers advanced graphical visualisations and highly efficient, automated workflows. These tools facilitate the escalation of alerts between users and management and provide valuable management information. Together, these features help build a truly holistic regulatory solution.

By combining trade surveillance, which is retrospective, with e-comms surveillance, which is prospective, we have created a comprehensive tool for our clients. The trade surveillance element monitors orders placed and trades executed, while the e-comms surveillance tracks communications to identify potential indications of market abuse before it’s taken place. Combining these two perspectives allows us to build a holistic picture that greatly reduces the volume of false positives compliance teams need to review and helps them to get to their risk quicker.

While our technology uses AI and machine learning to improve efficiency, it’s also important to state that we don’t rely on it solely to reduce false positives. This is because we believe in maintaining accountability for setting parameters and thresholds, which helps firms to avoid the pitfall of deferring to a computer’s decisions without explanation. Instead, we provide efficient methods to minimise false positives by analysing market conditions and how trades were executed in context.

3. What are the key challenges that financial institutions face today in terms of compliance?

The first challenge is the size, scale, and scope of the data that firms are dealing with. They are expected to process data from disparate sources and in huge volumes. So, how do they deal with and integrate this data into trade surveillance systems? And how do they then analyse, draw inferences and generate alerts from it?

Each of our regulatory modules are built upon a single system architecture, known as PATH. This is data agnostic, which is critical in addressing these challenges. This means it can consume vast amounts of data from multiple disparate sources and run our trade surveillance, eComms and best execution platforms on top of it. Essentially, we can ingest the data, process it efficiently, and use it to drive all of the required alerts.

When it comes to ensuring firms adhere to regulatory rules, there are two key elements. The first is maintaining compliance by conforming with their risk assessments. While firms must ultimately own this process – by identifying potential risks in their trading activities and conducting assessments to mitigate these risks – eflow provides a platform that facilitates quicker identification of these risks and generates the necessary alerts.

Collaborating with clients is also a step key to share insights from other similar firms, such as buy-side firms and retail brokers, for example. This helps us provide industry-standard guidelines and assist clients on their compliance journey. However, clients must still take responsibility for their own risk management, and our role is to help them identify and address these risks more efficiently.

There are two main points to address here. Firstly, on a general level, it’s crucial for firms to have robust risk assessments and processes in place. This was highlighted by the fines imposed on Citigroup and ADM Investor Services in 2023. These fines were not for actual abuses taking place, but for failing to have adequate risk assessments and processes to mitigate those risks. Citigroup, for example, was fined £27.766 million for not having risk assessments related to algorithmic trading and high-frequency trading. 

This does not mean their algorithms were causing market abuse, but rather that they lacked the necessary processes to mitigate potential risks. Regulators like the FCA are not just penalising firms for committing abuse but also for failing to have preventive measures in place.

We help mitigate these risks by providing a platform that inherently supports compliance and risk management. Our system ensures that firms can effectively manage and mitigate their risks, simply by using our technology.

Secondly, regarding the future of technology in regulatory compliance, the FCA’s ongoing Tech Sprint is a significant development. This initiative focuses on how AI and machine learning can solve various problems within the trade surveillance space. I am actively involved in this effort, and it underscores the regulator’s interest in not just current risk mitigation practices but also future capabilities. AI will play a crucial role in this.

While there are concerns about AI being used to perpetrate market abuse, as demonstrated by Apollo Research where AI used insider information to make a trade and then cover it up, the real value lies in using AI to identify causal relationships between different asset classes, products, and markets. 

For instance, let’s imagine that an aviation parts supplier has a longstanding relationship with an aeroplane manufacturer. If the manufacturer wins a new global contract that means they’ll be purchasing large volumes of parts from the supplier, the stock price of the supplier is highly likely to increase. The question is whether AI will be sophisticated enough to identify the causal effect of these individual events and join the dots.

By understanding these relationships, AI can help firms identify and mitigate risks more effectively. It’s not about using a black box to decide what alerts should be generated, but about using AI to identify these relationships and get to the root of the risk.

Ultimately, firms need to make a concerted effort to understand their risks and mitigate them effectively using SaaS solutions. While we would like firms to choose eflow’s technology, the key is to use explainable methods to identify and manage risks as efficiently as possible.



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Can Russia scale up barter trading to skirt sanctions?


Russia and its trading partners are mulling the use of a barter trade system to ease payment bottlenecks caused by US sanctions, yet experts warn Russian firms will likely be exposed to significant transaction risks.

Last month, Pakistan’s Prime Minister Shehbaz Sharif “emphasised the need to overcome financial and other banking issues” during a meeting with Russian President Vladimir Putin and suggested they expand barter trade.

Sharif recalled how historically Pakistan and the Soviet Union swapped goods such as machinery, textiles and leather, and urged the two nations to “enhance” their overall trade volumes of nearly US$1bn, a July 3 statement from Pakistan’s Ministry of Information and Broadcast shows.

In recent weeks, Reuters reported that Moscow is developing regulations for barter trading and that Russian and Chinese companies may begin bartering goods – initially agricultural products – by as early as Q4 this year.

Moscow’s renewed focus on barter trade, popular during the 1990s until Russian banks were drawn into the global financial system, comes amid heightened payment difficulties for Russian exporters and importers, which are battling the effects of secondary US sanctions first imposed in late 2023.

Fearful of losing access to the US dollar system, many foreign lenders who had continued to finance trade with Russia after the invasion of Ukraine, notably in China, have stopped facilitating Russian imports and exports.

Experts flag that Russia may seek to use barter trade to obtain products it requires for its war on Ukraine, while Beijing may use the arrangement to obtain natural resources such as oil and grain.

“The fundamental issue which has got us here is an overall reluctance on the part of Chinese banks to accept Russian trade-related payments,” James Willn, a partner at law firm Reed Smith, tells GTR.

Pointing to the impact of secondary US sanctions, he says the avenues for Russian firms to receive or send payments have “become sparse” and so a “goods for goods” arrangement with China would “not be unusual”.

“China is a net importer of crude and petroleum products where Russia has an abundance of both. It is an easy trade.”

Ajay Kuntamukkala, co-director of Hogan Lovells’ international trade and investment practice, says “what Russia wants is machinery, electronics, products that are necessary for its war machine”.

“I think [barter trading] will apply to not just state-owned entities, but also private companies in Russia would be interested in this as well.”

Russia’s trade with China has boomed since its full-scale invasion of Ukraine in 2022, surging by over 26% to a record US$240bn last year. Russia also overtook Saudi Arabia as Beijing’s largest source of crude oil.

Willn says that Russia may look to engage in barter trade with state-owned entities in countries beyond China, nations that are “not concerned as to any impact of Western sanctions”.

“The likes of Iran and North Korea come to mind, given they are heavily sanctioned by the US anyway and North Korea, much like China, is a net importer of oil.”

 

Potential scale?

Question marks remain over the potential scale of Russia’s mooted barter trading system and its efficacy as a sanctions-busting tool.

According to Willn, barter trade will “likely be more effective” for state-owned companies as opposed to commercial entities.

Before private firms can engage in barter trading, Russia will have to devise a complex regulatory framework likely covering the collection of taxes on imports, valuation of stamp duties and dispute processes, Kuntamukkala notes.

But he says there are various “practical difficulties” that Russian importers and exporters may struggle with.

“Maybe for a transaction here and there,” Kuntamukkala tells GTR. “But the idea the private sector is going to adopt barter trading, I’m sceptical. You’ll likely see some state-sponsored transactions and then some encouragement to companies to engage in that sort of trade. But I do not think it will scale very quickly.”

Meanwhile, there could be issues over the valuation of goods or the allocation of risk, should there be any instances of non-delivery or non-payment.

“Usually, one party sells an item and gets currency in return, there is a whole system of trade financing to allow for the transaction, whether it is letter of credit or another form of financing. There is a way to mitigate the risk of non-payment.”

To circumvent US secondary sanctions, Russian companies have increasingly sought new payment methods. Crypto and stablecoins are also being used to settle cross-border trade payments.

However, in May, the Russian Central Bank said US secondary sanctions are taking their toll on local firms, forcing “counterparties from friendly states to mitigate their risks”.

“More complicated supply chains and payment schemes are making imports more expensive, increasing input costs and disrupting supplies, which is reducing the profit margin on Russian companies’ products and their competitiveness in international markets,” the central bank said.

The post Can Russia scale up barter trading to skirt sanctions? appeared first on Global Trade Review (GTR).



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ADB and Dashen Bank partner to boost trade finance in Ethiopia


Estimated reading time: 2 minutes

The African Development Bank (ADB) Group has approved a $40 million transaction guarantee facility for Dashen Bank, aimed at enhancing trade finance activities in Ethiopia.

Nnenna Nwabufo, Director General of East Africa at ADB, said, “This facility underscores our commitment to supporting trade in Africa. By partnering with Dashen Bank, we’re leveraging their extensive knowledge and network in Ethiopia to drive economic growth through improved trade finance capabilities.”

The collaboration aims to provide crucial support to small and medium-sized enterprises (SMEs) and facilitate import-export trade finance requirements for local corporates. It also aligns with the agenda of the African Continental Free Trade Area (AfCFTA) by promoting intra-Africa trade.

Key aspects of the facility include:

  • Risk mitigation: Providing up to 100% guarantee to confirming banks against non-payment risks from letters of credit and similar trade finance instruments issued by Dashen Bank.
  • SME support: Focusing on enhancing trade finance access for small and medium-sized enterprises.
  • Intra-Africa trade: Promoting cross-border trade within the continent, supporting AfCFTA objectives.
  • Economic sector development: Supporting key sectors such as agriculture and manufacturing.
  • Regional expansion: Enabling Dashen Bank to expand its trade services across the region.

Asfaw Alemu, CEO of Dashen Bank, said, “This guarantee facility is instrumental in expanding our bank’s trade services. The engagement with ADB has not only secured this vital funding but has also equipped us with invaluable best practices to elevate our banking standards.”

The facility is expected to play a significant role in supporting local African banks, particularly in low-income countries and transition states, by mitigating risks associated with trade finance operations.

This partnership between ADB and Dashen Bank represents a strategic step towards strengthening Ethiopia’s position in regional and international trade, while simultaneously supporting the country’s economic development through enhanced SME capabilities and sector-specific growth.



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US groups look to federal officials for help on Mexico rail concerns



ARLINGTON, VA. — US agriculture groups are calling on federal officials to address rail service capacity issues in Mexico that are hindering US agricultural trade.

The National Grain and Feed Association (NGFA) and members of the Agricultural Transportation Working Group sent a letter July 31 to Surface Transportation Board Chairman Robert Primus, Agriculture Secretary Tom Vilsack and US Trade Representative Katherine Tai outlining their concerns.

Demand for rail service and insufficient investment in rail infrastructure have led to embargoes, congestion and slowed servicing of US agricultural products by Ferromex, a main rail carrier in Mexico, the groups said in the letter.

Agricultural shippers have encountered rail service constraints with Ferromex for almost a year due to the rail line’s need for rationing and the relatively lower rates for agricultural products, they said.

“We urge you to speak with your colleagues in Mexico to encourage increased investment in the country’s rail network and to ensure US agricultural products do not disproportionately bear the burden of rail service constraints,” the letter said.

Mexico is the largest export market for US agricultural products with over $30 billion exported to Mexico in the past year.

“As our most natural trading partner, Mexico is a critical stakeholder for the US agricultural supply chain,” the groups said. “However, the United States’ proximity advantage over agricultural competitors like Brazil and Russia is reduced by the rail capacity problem, leading to higher exports into Mexico from these competitors.”



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BII and DP World partner to develop DRC’s first Deepwater Container Port


Estimated reading time: 2 minutes

British International Investment (BII), the UK’s development finance institution and impact investor, has committed up to $35 million towards the development of the Democratic Republic of the Congo’s (DRC) first deepwater container port.

The Port of Banana is set to be developed in phases with gradually increasing capacity and will be a cornerstone of DRC’s trade infrastructure. Connected to a network including a free zone and multimodal logistics infrastructure, it will economically benefit the 54 million people living along the 578km Banana-Matadi-Kinshasa trade corridor.

Chris Chijiutomi, Managing Director and Head of Africa for BII, said, “The Port of Banana will play a major role in supporting the economic aspirations of millions living in the DRC. This investment forms part of BII’s ongoing commitment to investing in key sectors in Africa, with further projects under development in the region.”

The collaboration aims to unlock the DRC’s international trading potential and enhance economic growth. Key aspects of the project include:

  • Job creation: Expected to generate approximately 85,000 new jobs.
  • Trade boost: Projected to facilitate an additional $1.12 billion in trade annually.
  • Economic impact: Anticipated to increase economic output by $429 million per year, equivalent to a 0.65% increase in the DRC’s GDP.
  • Trade cost reduction: Expected to cut trade costs in the DRC by 12%.

The Port of Banana project is an extension of the existing partnership between BII and DP World, which began with port modernisation and expansion projects in Senegal, Egypt, and Somaliland in 2021.

Mohammed Akoojee, CEO of sub-Saharan Africa for DP World, said, “This project is a significant step towards enhancing the DRC’s trade infrastructure, unlocking economic potential, and creating jobs. By reducing trade costs and improving access to global markets, we aim to support the DRC’s growth and prosperity.”

As the sole maritime gateway for containerised goods, the port will ensure the DRC’s logistical independence and trade sovereignty. As such, essential imported goods will become more affordable and accessible to millions. It’s also expected to significantly boost economic welfare for rural households, increasing the number of new jobs in agriculture by about one-third.

This partnership between BII and DP World represents a strategic step towards improving Africa’s trade infrastructure and supporting economic development in the DRC and the broader region.



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Saudi Exim doubles financing in first half of 2024


The Saudi Export-Import Bank (Saudi Exim) has provided 128% more financing and insurance in the first half of 2024 compared to the same period last year, according to the Saudi Press Agency.

The bank extended SAR16.31bn (US$4.35bn) in credit facilities and export credit insurance, which it says reflects its commitment to supporting non-oil exports from the country. Saudi Exim made export finance disbursements of SAR7.03bn (US$1.87bn) in the first six months of the year, while the value of export credit insurance policies issued during the period totalled SAR 9.28bn (US$2.47bn).

This growth was driven by the government’s support for sustainable development and economic diversification, says Saudi Exim’s CEO Saad Alkhalb in comments reported by the press agency.

Saudi Exim was launched in 2020 to help slash the oil-rich kingdom’s economic dependence on hydrocarbon exports, a key plank of  Vision 2030, Saudi Arabia’s plan to diversify the economy and increase inclusion in society.

According to the International Monetary Fund’s 2023 staff report on Saudi Arabia, the country has doubled non-oil revenues since 2017 thanks to “impressive mobilisation efforts”.

The IMF notes that oil and oil products made up nearly 80% of Saudi’s products and exports in 2023, but that share fell to 72.4% in May this year, according to the Saudi Arabian General Authority for Statistics (GAS).

The GAS also notes that 45% of the country’s non-oil exports in May were chemical products and plastics. Both of these categories are heavily reliant on the byproducts of oil extraction and refinement, according to the American Institute of Chemical Engineers, though they are falling as a percentage of non-oil exports.

Saudi Exim has been involved in numerous deals this year focusing on non-oil exports. In May, it extended a US$100mn credit line aimed at boosting non-oil exports to Turkey following January’s US$25mn joint credit line with the International Islamic Trade Finance Corporation to Pakistani lender Bank Al Habib.

More recently, Saudi Exim announced a US$10mn credit line to the Mauritanian Investment Bank to boost non-oil exports to the country as part of its plan to provide a cumulative US$10bn in funding to the continent by 2030.

Despite its expanding scale, Saudi Exim has yet to turn a profit, its 2023 annual report shows. Its cost-to-income ratio is 111%, meaning that the bank spends SAR1.11 for every SAR returned, though this is better than its 148% ratio in 2022.

The post Saudi Exim doubles financing in first half of 2024 appeared first on Global Trade Review (GTR).



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a victory for market practice, or just a warning on how to draft?


Estimated reading time: 5 minutes

The Court of Appeal has reversed a decision regarding an offer under a Bankers Association for Finance and Trade (BAFT) Master Risk Participation Agreement (MRPA), in a case between Kimura Commodity Trade Finance Fund Limited and Yieldpoint Stable Value Fund, LP.

Explaining the BAFT MRPA

The BAFT MRPA – the most recent version of which was released in 2018 with a few updates since – has been regarded as a market standard document by which holders of trade assets such as loans, receivables and contingent payments (e.g. letters of credit) can act as sellers of participations in the risk in those assets to a counterparty, the participant.

The sale can either be funded, where the seller receives payment upfront from the participant, or unfunded, where the participant only pays if there is a default.

The purpose of such an arrangement is to transfer the credit risk of default in the underlying transaction from seller to participant. The seller sells ‘without recourse’ to itself and leaves the participant to take the risk of non-payment in the underlying transaction by obtaining recourse against the obligor in that transaction – the recourse party.

The parties enter into the BAFT MRPA which, as its description implies, is a master agreement so either party can be a seller or participant in a specific transaction. The mechanism is to document the participation by an Offer under which the seller offers to sell and the participant agrees to purchase a participation. So far so good?

The current case

In this case, Kimura was the seller and Yieldpoint was the participant. The parties had a BAFT MRPA and the specific transaction was documented by way of an Offer and Acceptance – and this is where the problem emerged.

The parties appear to have discussed the fact that Kimura wanted to have a funded participation and so transfer the risk of non-payment to Yieldpoint. Yieldpoint wanted to participate for only a limited period even though the underlying transaction might not have the same maturity.

In an attempt to reflect what Yieldpoint wanted, a maturity date was inserted into the Offer without any further qualifications or provisions.

By the time of the maturity date of the participation, the obligor had not repaid the underlying transaction. Yieldpoint claimed its funding back. Kimura resisted, arguing that that Yieldpoint had recourse only to the obligor and it had not paid.

The decision

The exact terms of what the parties intended were the subject of the court decision. The court at first instance accepted Yieldpoint’s argument that, because of the maturity date provision in the Offer, the participation was to be repaid on its maturity date without regard to the position in the underlying transaction. 

That drove a coach and horses through the without-recourse structure of the BAFT MRPA. However, the document does say that in case of conflict, the terms of the Offer prevail.

Now, the question is whether a simple change – like inserting a maturity date – was sufficient to turn the participation into one of full recourse or not.

Fortunately for Kimura, the Court of Appeal reversed the decision and held that participations under a BAFT MRPA, including this specific Offer, were indeed without recourse to the seller. Notwithstanding the insertion of a maturity date, that was not sufficient to make Kimura liable. So Yieldpoint was only entitled to repayment of its participation if the obligor had repaid.

Outcomes

People will argue whether the case was rightly decided or not. 

The fact that the parties litigated is a stark reminder of what can happen if a transaction does not go how the parties envisaged. Simply put, Kimura wanted funding and would have regarded their document as achieving funding on a without-recourse basis. 

Yieldpoint appeared to believe that they were funding Kimura but without concern for what might happen in the underlying transaction.

At first glance, this seemingly strange conclusion turned on whether inserting a maturity date achieved the complete reversal of what a BAFT MRPA is normally used for. In other words, ignoring all the provisions about an obligor being a Recourse Party and the seller’s obligation being limited to paying over Recoveries – these being defined terms in the BAFT MRPA.

The fact that Yieldpoint convinced a judge of their argument is a lesson in itself, but the reversal by the Court of Appeal would appear to restore reason and reflect the support of the BAFT MRPA structure of a without-recourse sale by the seller with recourse limited to the Recourse Party.

How will the BAFT MRPA be used in the future?

If funding is to be by way of full recourse then perhaps using the BAFT MRPA is not the best way of proceeding. Or, if it is to be used, then it would be beneficial to include far more detail on what exactly is being agreed upon.

Maturity dates per se may work to this end, but where they do not exactly reflect the repayment date of the underlying transaction, care must be taken to reflect whether or not repayment of the participation is contingent or not.

Perhaps the main conclusion to draw is that careful drafting is needed when reflecting whatever is the subject of an Offer. The BAFT MRPA form of Offer is but a list of headings to be completed correctly to reflect what is offered and on what terms. 

Failure to be specific can result in potentially costly litigation and an unpredictable result.



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FAO warns on spread of African Swine Fever in China | 2018-08-29


ROME – The Food and Agriculture Organization (FAO) of the United Nation’s issued a warning about the rapid spread of African Swine Fever in China. The agency believes the detection of the deadly virus in areas more than 1,000 km apart within the country could spell trouble for other Asian countries.

“The movement of pig products can spread diseases quickly and, as in this case of African Swine Fever, it’s likely that the movement of such products, rather than live pigs, has caused the spread of the virus to other parts of China,” said Juan Lubroth, FAO’s chief veterinarian.

African Swine Fever is a hemorrhagic disease of pigs, warthogs, European wild boar and American feral pigs. ASF is highly contagious, and swine of all age groups are susceptible to it. Currently, there are no vaccines against the disease. Mortality rates in a swineherd can be as high as 100 percent, and death can occur within two to 10 days on average, according to the World Animal Health Organization (OIE). The virus isn’t harmful to humans and doesn’t represent a food safety risk.

Multiple outbreaks of ASF have been confirmed in China in recent weeks.

China’s first outbreak of ASF occurred in the city of Shenyang. Forty-seven pigs died from the disease, and 8,069 pigs were culled.

A second outbreak occurred more than 600 miles away in Zhengzhou, China. Officials said 30 out of 260 live hogs supplied by an independent live hog supplier in Jiamusi City, Heilongjiang Province, were found dead. The People’s Government of Zhengzhou Municipality issued a blockade order requiring WH Group to close a processing plant where the pigs were delivered for six weeks. The Foreign Agricultural Service (FAS) of the US Dept. of Agriculture said officials in Heilongjiang are carrying out surveillance activities. Heilongjiang Province is roughly 1,500 miles away from Zhengzhou.

A third outbreak was reported on Aug. 19 at a farm in Lianyungang City, Jiangsu Province, involving 88 dead pigs. FAS said the second and third outbreaks are in the heart of China’s pork production region.

“These second and third outbreaks, centered in Henan and Jiangsu Provinces, represent a significant escalation of the outbreak situation,” FAS reported. “Unlike Liaoning Province, which only accounts for 3 percent of total swine production, Henan and Jiangsu Provinces account for over 10 percent and 4 percent of production, respectively. Moreover, these provinces are bordered by Hebei, Shandong, Anhui, and Hubei Provinces — accounting for another 19 percent.”

FAS noted that the slaughterhouse in Henan Province is located roughly 1,500 miles away from the suspect farm in Heilongjiang Province representing a 30-hour trip on a route that is heavily traveled by trucks moving pigs from Northeast China to Central China.

The Emergency Centre for Transboundary Animal Diseases (ECTAD) of the FAO is communicating closely with authorities in China to monitor the situation, the agency said. 

“FAO began working with China’s Ministry of Agriculture and Rural Affairs a few years ago and, together, we have set up an ASF contingency plan and developed diagnostic capacity,” said Wantanee Kalpravidh, FAO-ECTAD’s regional coordinator. “We have also jointly developed a Field Epidemiology Training Programme for Veterinarians which aims to strengthen epidemiological investigation, disease situation tracking, risk assessment and emergency preparedness.”

Read more about African Swine Fever in the September issue of MEAT+POULTRY.



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