This project aims to organize a one-day workshop on supply chain finance and implementation of secured transactions in a cross-border context at EC 2 in 2016. There will also be a follow up workshop on secured finance and supply chain finance/warehouse receipts in 2017. As has been widely recognized in APEC, lack of access to credit is one of the main obstacles to growth for MSMEs. Supply chain finance, if more widely adopted, could prove to be a boon for providing credit to MSMEs, especially those MSMEs involved in cross-border trade. The invisible glue that holds together supply chain financing is a harmonized secured transaction system. Supply chain finance is best supported through:
1) implementation of laws that facilitate asset based lending based on international best practices (like the UNCITRAL Model Law on Secured Transactions and the Assignment of Receivables Convention);
2) development of a modern warehouse receipts legal regime including one that permits the use of warehouse receipts as a basis for secured lending; and
3) accession to international conventions that facilitate enforcement of security interests across borders (like the Hague Choice of Court Agreements Convention and the UNCITRAL arbitration instruments). The workshop would build on and integrate the results from the study on Assessing APEC Getting Credit and Enforcing Contracts Frameworks according to International Best Practices to promote legal reforms for the purpose of facilitating supply chain financing.