TF COP: A comprehensive initiative to address the global trade finance gap - Trade Treasury Payments

The global small- and medium-sized enterprises (SMEs) finance gap stands at approximately $4 trillion (Compromiso de Sevilla). This represents a significant barrier preventing many SMEs from accessing the financing they need to participate in international trade. 

The Trade Finance Conference of Parties  (TF COP) has emerged as a strategic response to this persistent challenge. The coalition comprises a number of trade finance providers from both public and private sectors. Hosted by the International Trade and Forfaiting Association (ITFA), TF COP embodies a pragmatic, industry-driven approach to solving what many consider the most persistent barrier to inclusive global trade.

TF COP Task Force is a groundbreaking international initiative that unites financial institutions, development banks, trade bodies, and private sector organisations with a singular mission: to systematically reduce and ultimately eliminate this financing disparity. It formally launched the TF COP Task Force in Seville on July 3rd, 2025, marking the transition from conceptual planning to operational implementation.

TF COP: A framework built on ambitious objectives

Formally established through the “Washington Declaration” issued by ITFA, the TF COP has taken the revolutionary step of designating the trade finance gap as a critical Environmental, Social, and Governance (ESG) matter. This classification elevates the issue from a purely economic concern to one that intersects with global sustainability objectives.

Duarte Pedreira, TF COP Chair and TTP Global Advisory Panel member, called it “the broadest, most representative coalition ever gathered in the trade finance industry”, a reflection of the industry’s resolve to finally consign the trade finance gap to history.

“The problem is well identified, and as an industry we rally on the sustainability and humanitarian impacts it has,” he said. “As such, this is an action-driven group, which is not only completely focused on discovering new solutions to the problem, but also, and chiefly, to implement them. This will happen through the creation of an incubator, where these solutions will be tested and, if successful, delivered back to the industry for scaling up.”

The organisation operates through a dedicated Task Force housed within ITFA, creating an open and collaborative forum accessible to all organisations that share their objectives. According to the documentation from their July 2025 launch in Seville, the Task Force brings together diverse stakeholders committed to developing and implementing innovative solutions that can effectively narrow the financing gap.

For this, the TF COP has established clear and ambitious temporal targets that demonstrate the urgency of their mission. The TF COP coalition has collectively committed to halving the global trade finance gap by 2030, with the ultimate goal of complete elimination by 2040. These timeframes provide concrete benchmarks against which progress can be measured while creating accountability among participating organisations.

The TF COP’s mission strongly aligns with the broader commitments established at the Fourth International Conference on Financing for Development (FfD4) in Seville. The Sevilla Commitment, formally known as “Compromiso de Sevilla,” was adopted by consensus and identifies the $4 trillion annual financing gap as a critical obstacle to achieving the Sustainable Development Goals. 

The Sevilla Platform for Action, which includes 130 specific initiatives focused on investment at scale, addressing debt crises, and reforming the international financial architecture, provides a comprehensive framework that complements TF COP’s targeted approach to trade finance specifically.

Additionally, the coalition aims to engage with the United Nations to achieve formal recognition of the trade finance gap as a critical obstacle to attaining the UN Sustainable Development Goals. This strategic approach positions the resolution of the trade finance gap as a key sustainability priority throughout the financial industry.

Multi-Sector participation ensures comprehensive solutions

The strength of the TF COP lies in its diverse membership that spans multiple sectors of the financial ecosystem. The coalition includes numerous Development Financial Institutions such as the African Development Bank, Asian Development Bank, International Finance Corporation, and several regional development entities.

TF COP Conference at Seville 

Trade Bodies form another crucial component, with organisations like BAFT, Berne Union, FCI, ICISA, and ITFA lending their expertise and networks. The involvement of Central Banks, including the Reserve Bank of Malawi, provides additional regulatory perspective and implementation capacity. 

The private sector representation includes a wide range of financial institutions and specialised firms, including Africa Global Trade Finance, Crown Agents Bank, Ghana International Bank, and numerous others that bring practical market experience to the initiative.

On the functional nitty-gritty, the TF COP Task Force implements its mission through a structured operational model that facilitates collaboration across regions and functions. Working groups focus on developing solutions, fostering dialogue, building capacity, and addressing specific challenges related to the trade finance gap. The Task Force operates through a hub-and-spoke model with regional working groups in Africa, Asia, Latin America, and Europe coordinating with functional specialists across sectors. 

Also, during the Task Force Launch event in Seville, presentations explored various approaches to resolving financing challenges, including Significant Risk Transfer securitisation strategies to deepen Development Finance Institution-backed lending in Latin America, practical examples of SME support in the insurance sector, and the intersection between the trade finance gap and sustainability objectives. 

These initiatives align with the broader Sevilla Platform for Action framework established at FfD4, which envisions transformative changes to the global financial architecture. The Sevilla Commitment specifically addresses the need to strengthen blended finance instruments, expand access to multilateral development bank support, and reform financial systems to better serve SMEs in developing countries, all areas where the TF COP Task Force is developing concrete implementation plans. 

What does it mean for global trade development?

The formation of the TF COP represents a significant evolution in how the financial industry approaches the trade finance gap, especially for SMEs. 

As the Task Force advances its programmatic agenda, the potential economic impact extends far beyond the financial sector. Its effort to improve access to trade financing could enable millions of previously excluded businesses to participate in international commerce, unlocking economic growth while simultaneously advancing global sustainability objectives. 

The TF COP showcases how coordinated industry action, when properly structured and implemented, can effectively address complex financial challenges on a global scale. With the recent recognition of trade finance as a critical development issue at the Fourth International Conference on Financing for Development in Seville, the TF COP initiative is well-positioned to build momentum. All in all, bridging financing gaps in critical sectors will require major shifts in policy, political will, and financial architecture, all areas where the TF COP Task Force is actively engaged