| Promotes Export of Agricultural Products through Export Credit Insurance |
| |
2006-11-23 |
| |
| |
Promotes Export of Agricultural Products through Export Credit Insurance |
|
MOFCOM issued a circular recently to require local administrations of commerce to encourage agricultural export enterprises in strengthening export credit risk management, improve their international competence and further promote export of predominant agricultural product.
Since the beginning of 2006, Japan and EU implement new regulations on food safety which greatly raise market entrance qualification on food and agricultural product, meanwhile bring difficulties to China's export of agricultural product. In Jan through Jul 2006, export value of China's agricultural products was US$14.07bln, up by 9.3%, while 22.5% in the same period in 2005.
Relative research of MOFCOM shows, affected by foreign technical barrier restrain, especially Positive List System of Japan, that increase of China's export to Japan dropped sharply and which was one of main reasons of slowing down increase of China's agricultural product export in the first half year of 2006. It is predicted that Japan's Positive List System will be a key factor in impact of China's agricultural product export in relative period; meanwhile export increase of agricultural product will keep slowing down in the 2nd half of 2006.
Dealing with intensifying status on trade risk facing to enterprises in exporting agricultural product, MOFCOM puts forward, to set up working mechanism on supporting agricultural product export, set up efficient working communication and coordination mechanism by administrations of commerce in all levels and business institutions of China Export & Credit Insurance Corporation (SINOSURE), learn about local enterprises situation in time, carry out pertinent policy and measure on export credit insurance, and actively support agricultural product export.
According to the requirement of circular, SINOSURE will keep solving capital shortage of enterprises through financing under insurance, gradually form integral finance supporting system for agricultural product export, expand trade finance for enterprises, and promote their credit rating.
In providing value added service related with credit risk for enterprises, SINOSURE will, on the basis of traditional export credit insurance service, provide combined services, such as pre-shipment risk insurance for export enterprises, domestic credit insurance which related with export and assurance matching with export credit insurance. In addition, in order to provide more convenient service, SINOSURE will abolish qualification of applying for insurance for medium and small enterprises, simplify applying procedure.
According to the statistics, in 2005, SINOSURE supported US$1.44bln agricultural product export, supporting value of export credit insurance constituted 5.4% of China's total export value of agricultural product. Trade on agricultural product of 505 enterprises won support from SINOSURE.
Heads of SINOSURE said, at present insurance applicant of agricultural product constituted 20% of total applicants. As increase of benefited enterprises, more enterprises exporting agricultural product strengthened preventing consciousness on export credit risk. In 2005, through export credit insurance, 260 enterprises exporting agricultural product won US$440mln trade finance and assurance finance.
| |
| |
|
|
