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Supply Capacity
In line with the trade focus of this Guide, support activities to develop supply capacity are considered to be those that aim to increase the availability of goods and services for export. There is no easy distinction between this and building more general capacity to produce, and this distinction is becoming less pertinent as borders open and competition in local markets from imports increases. Some agencies do not make this distinction in their projects.
Trade-Related Financial Services
Trade finance is one of the areas where exporters from developing countries are most disadvantaged compared to those from developed countries because selling at a distance to purchasers who are not directly known within the country requires special skills and risk assessment from banks. Only when exports reach a sufficiently high level is it profitable for banks in a country to acquire these skills, so exporters, particularly SMEs, are hampered by difficulty in accessing export finance. Therefore both the cost and the availability of appropriate finance are problems. Some agencies offer support to build national capacity, while others try to fill the gap until such capacity is available.