The International Chamber of Commerce (ICC) released its Global Survey 2014: Rethinking Trade and Finance on July 2. This is its largest and most comprehensive survey to date, including data from 298 banks across 127 countries. The survey concludes that the growth rate of international trade has dropped drastically, compared with the years prior to the global financial crisis.

According to the ICC, the global trade growth rate was a shade above 3% during 2013; however, it picked up to an annualised growth rate of 4% during the first quarter of 2014 and is expected to accelerate beyond 5% to 2016.

Sixty-eight per cent of the respondents reported that the availability of trade finance had increased in value, compared with the previous year. In terms of the 'trade finance gaps', 41% of respondents reported that they perceived a shortfall of trade finance globally. According to the ICC, this gap remains a major challenge, especially for small and medium-sized enterprises (SMEs) since, without access to trade finance, now widely acknowledged as an engine of growth, SMEs will not be able to contribute substantially towards economic recovery and development.

'Know your customer' and anti-money-laundering regulations caused 68% of the respondents to decline transactions, and nearly a third (31%) to close down correspondent account relationships. A total of 41.03% of the respondents reported that complying with sanctions had restricted trade finance operations in 2013 to a greater extent than in previous years. Such compliance is expensive, with the survey citing the cost of compliance for one counterparty as high as $75 000.

The survey highlighted that G20 countries accounted for three-quarters of the trade-restric- tive measures imposed since 2008, with World Trade Organisation figures showing that these countries introduced 193 new trade restrictive measures between December 2012 and November 2013. Such restrictions - many of which are protectionist and, therefore, trade distorting - have stalled the agenda to open up world trade.

Sixty-five per cent of the respondents stated that Basel III regulations had affected the cost of funds and the liquidity of trade finance. Within the Export Finance section of the survey, 72% of the respondents agreed that Basel III had made them more innovative as an organisation, although 69% also said it had prompting them to increase pricing for their customers.

One key finding of the survey is that South-South exports now represent 46% of global exports. Also, 40% of the respondents identified Asia as the primary focus for trade. Even with trade slowing in the emerging markets, the significance of these markets within the global economy is increasing, as new trade corridors are opening up. Yet it is these markets that most keenly feel the pinch of inadequate trade financing availability.

According to the ICC, one important benefit of the financial crisis is the spirit of partnership that has evolved between trade and trade finance stakeholders, which has been evident since the start of the survey.