Surety Bond Quarterly - Spring 2016 - (Page 31)

Feature FACILITATING INTERNATIONAL Commercial Surety BY HECTOR D. BOUSO KATHLEEN MITCHELL AARON T. ORT CHRISTOPHER T. PARKER SHEILA E. THOMPSON AS THE GLOBAL economy changes, the need to provide bonds in another country for U.S.-domiciled companies will increase. What do you do when your biggest U.S. client needs a bond in another country? This article outlines some of the issues that should be considered when arranging for a bond to be written outside of the United States. Where are the majority of international bonds written? Latin America is one of the largest and most well-established surety bond markets outside of the U.S. Some of the largest markets include Mexico ($603 million in 2013), Brazil ($508 million), and Colombia ($473 million), according to a Swiss Re 2014 report, "Trade credit insurance & surety: taking stock after the financial crisis." Surety bonds are also used throughout Europe although bank guarantees are used extensively. Asia is primarily a bank guarantee market although there are sizeable surety markets in South Korea and Japan. Africa and the Middle East are almost exclusively bank guarantee markets. NATIONAL ASSOCIATION OF SURETY BOND PRODUCERS | WWW.NASBP.ORG 31 http://WWW.NASBP.ORG

Table of Contents for the Digital Edition of Surety Bond Quarterly - Spring 2016

NASBP Upcoming Meetings & Events
2015-2016 Executive Committee
From the CEO – It’s Spring and a Season of Change for Surety
Practical Insights: What You Need to Know – Joint Ventures in Construction
Making a Difference: NASBP Members support Breakthrough in Trauma Treatment for Vets
Susan Hecker Recognized for Contribution to Heavy-Construction Industry
Evolving Compliance Requirements: Addressing Human Trafficking
Subcontractor Surety Bonding and Default Insurance
Managing Subcontractor Risks of Non-Performance and Financial Failure
SDI Insured Must Shoulder Burden to Pursue Claims Against CGL Policy
One Contractor’s Transfer Preference: Subcontractor Bonds
Facilitating International Commercial Surety

Surety Bond Quarterly - Spring 2016