MoU between Quad Export-Credit Agencies
The Quad countries’ Export-Credit Agencies (ECAs) signed a Memorandum of Cooperation (MoC) in Oslo, Norway on 23rd April, 2024. The four agencies are:
Japan - Nippon Export and Investment Insurance (NEXI)
Australia - Export Finance Australia (EFA)
India - ECGC Limited (ECGC)
United States (US) - Export-Import Bank of the United States (USEXIM)
The MoC is geared towards contributing to the prosperity of the Indo-Pacific region, and has interesting points of convergence regarding supply chain resilience, critical technologies, and emerging technologies.
The ECAs commit to engage on opportunities to enhance supply chain resilience, through activities such as regional trade and investment support and market diversification efforts.
In this vein, they commit to regularly “exchange experiences and information on ways to develop and expand supply chain resilience through financing activities, including opportunities for Quad partner businesses to work with each other.
The ECAs also committed to sharing experiences and expertise on infrastructure financings in the development of green financing solutions and products, and in this vein, committing to exchange information on mechanisms and activities to lower our own business emissions and otherwise address climate change.
The second area of focus is climate, energy, and infrastructure, with a broad aim towards increasing connectivity in the Indo-Pacific and supporting regional governments to finance, guarantee and/or ensure quality infrastructure, including renewable energy. The MoU emphasises such support in Africa.
Also recognised is the “urgent need to address climate change and share a common commitment to [support] the successful implementation of the Paris Agreement”, and support technologies that support this. This includes supporting growth in low-to zero-carbon emerging technologies and associated infrastructure development and critical minerals supply. (These relate to technologies that the Quad Clean Energy Initiative already houses.)
Debt sustainability has also been given focus, as was the case in the Quad’s statements. As part of the 2023 joint statement, the Quad committed to ensuring that investments supported are fit for purpose, demand-driven and responsive to countries’ needs, and do not impose unsustainable debt burdens. The ECAs recognise challenges “some countries may face regarding debt sustainability”, and will support debt transparency commitments, ensuring export financing, credit guarantees and insurance activities.
The third focus area is promoting organisational exchanges. To facilitate information exchanges and sharing and to develop joint approaches, the Quad ECA Heads will meet annually, along with key officials from each respective agency meeting periodically, to identify and coordinate projects of mutual interest and consider further steps to deepen cooperation.
Finally, each ECA committed to deepening bilateral coordination where possible and appropriate.
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