Export credit agencies, such as Eximbanka, are becoming key players in ensuring the stability of international trade in times of current geopolitical and trade uncertainty. The introduction of tariffs and trade barriers poses new challenges for agencies, especially in helping exporters to eliminate risks that may arise precisely as a result of unpredictable changes in trade policies.
Targeted trade measures such as tariffs can put exporters under pressure by making their products less competitive in foreign markets. They may also face changes in terms of trade at the time of order fulfilment or the risk of non-fulfilment of contractual obligations by foreign partners.
And export credit agencies are becoming an invaluable tool to mitigate these risks, providing exporters with financial and insurance support that enables them to minimise losses. In the case of tariffs, they can help them mitigate the risk of non-payment or reduced sales in key markets. Many agencies provide political and commercial insurance to protect exporters against unforeseen changes in trade, including political decisions that may affect terms of trade.
An example of this is Spain’s recently unveiled EUR 14.32 billion Trade Response and Recovery Plan to mitigate the impact of US tariff policy. In this context, the capacity of the Spanish export credit agency CESCE to insure export credits has been increased from nine to 15 billion euros. The aim of this step is to mitigate the impact of the US tariff policy on Spanish exporters, reducing their dependence on traditional markets and maintaining their competitiveness in foreign markets.
With trade tensions currently escalating, the role of export credit agencies will be crucial to ensure a stable trading environment and maintain the competitiveness of exporters. After all, until recently, safe markets such as the United States are now worth insuring against risks that can significantly increase the cost of doing business.
Eximbanka has proven in the past that it can react in times of crisis. Be it during a covid pandemic or an energy crisis, including by providing support to exporters in diversifying their client base or sales sphere. The introduction of tariffs provides us with an opportunity to once again demonstrate our ability to adapt to rapidly changing conditions and to offer exporters support in times of current uncertainty.