UNCTAD and the Export-Import Bank of India have signed a Memorandum of Understanding (MoU) intended to strengthen the ability of financial institutions in developing nations to spur trade and investment flows among such countries.
The memorandum was signed March 13 by UNCTAD Secretary-General Supachai Panitchpakdi and T. C. Venkat Subramanian, Chairman and Managing Director of Exim Bank of India.
Over the past decade South-South trade, as it is called, has grown three times as fast as world trade, and South-South investment flows have rapidly expanded to account for more than one-third of the total investment flows to developing countries. This has occurred despite the fact that many countries in the developing world suffer from a serious gap in the financing of commodity trade and investments.
The MoU will formalize cooperation between UNCTAD and the bank to enhance South-South trade and commodity finance. Activities may encompass training activities, joint studies and publications, joint workshops, and joint advisory missions that can strengthen developing country financial institutions in their efforts to support South-South trade and investment flows.
UNCTAD has focused since the early 1990s on expanding the capabilities of financial institutions in developing countries, especially for promoting trade and investment in commodities. Exim Bank India has large network of overseas offices and institutional linkages with banks in developing countries, and extensive experience in supporting South-South trade and investment. Exim Bank India is also the principal institution within India for financing, facilitating, and promoting foreign trade.
