EMEIA: Trade Brief

August 14, 2019

EMEIA Region - Trade Brief 

UPDATE: 14th August

UK

Following a by-election in the Welsh constituency of Brecon and Radnorshire, the government's commons majority is further reduced to just one. This makes the job of delivering Brexit on the October 31 an increasingly more difficult proposition with the chances of a General Election highly probable. The advice from our Trade Compliance experts is to prepare for No Deal, with exit set for October 31. Assuming the UK leaves the EU on that date, the UK will convert EU law into domestic law, referred to as 'Retained EU Law', this will provide some certainty once the constitutional basis for EU law is removed. In the next few days it is expected that the UK's opposition party will push for a vote of no confidence in the government which could force a general election. 

Britain is to plough in and extra GBP 2.1 billion into No Deal planning, including stockpiling of medicines and border force personnel. 

EU - Trade Update

On June 30th, the European Union and Vietnam signed a Trade Agreement and an Investment Protection Agreement which will now be presented to both the European Parliament and the Vietnamese Assembly for ratification. Vietnam is the EU's 16th trade and goods partner and the EU's second largest trading partner in the Association of Southeast Asian Nations (ASEAN)

Indonesia threaten retailiation against the EU following the European Commission's plan to impose duties ranging from 8 - 18% as a reaction to a complaint from the European Biodiesel Board. The measures are planned to counter unfair subsidies from the Indonesian government.

Further information on commencing trade with this region, below on the European Commission Trade Help Desk: 

https://trade.ec.europa.eu/tradehelp/

 

France

 

French customs are placing more focus on tackling fraud and tax evasion, this follows a tightening of the law in October 2018 and the creation of the Judicial Investigations Department of Finance (SJEF) on July 1st. Specifically focusing in on: tobacco smuggling, VAT fraud, infringement of the intellectual property code, tax evasion and money laundering. Importers beware, if you have not reviewed your compliance policy recently, now is the time to do so. 

 

Ireland

 

Ireland's Taoiseach congratulated the UK Prime Minister on his appointment and said he looked forward to having a long and close working relationship, and followed on by discussing the importance of the Irish Back Stop and ensuring terms of the Good Friday Agreement are retained. Given the backdrop to Boris Johnson's policy of dropping the Back Stop in all scenarios, the relationship could prove rocky over the coming few weeks. Sinn Fein, call on the UK government to prepare for Ireland's unification with Northern Ireland in the event of a no deal and offer the people a vote on the matter. 

 

India

 

US-China trade war could be a missed opportunity for India as Thailand and Vietnam step up to the plate as India slips down to the 7th in GDP Global rankings from 6th place, according to the World Bank based on the 2018 figures. A slowdown of growth during the first quarter of the fiscal year 2019/20 has been recorded, with signs of recovery noted in July. Although it is not all bad news, as India is shown to be the fastest growing major economy in the world in the first quarter of 2019. 

China has warned India of reverse sanction should they block Huawei Technologies from the trials for the installation of 5G network technology, warning of consequences for Indian business operating in China. 

 

Oman

 

A statement issued to the Oman News Agency by the Sultante's Ministry of Finance announces that it is going to apply the value added tax (VAT) in 2019 following its delay in implementation last year. This will be in compliance with the GCC unified agreement to apply the tax at the level set by the GCC countries (Bahrain, Kuwait, Omar, Qatar, Saudi Arabia and United Arab Emirates).  GCC countries (Bahrain, Kuwait, Omar, Qatar, Saudi Arabia and United Arab Emirates).

 

Germany

 

Manufactuing output dropped again in July to its lowest level in seven years, this follows a ten year economic boom. The weakening of Germany's export market threatening to push the country into technical recession added to this the European Central Bank signalling concerns about the Euro Zone growth. 

 


Questions:

Should you have any questions relating to the information above or other issues that you may face, please don't hesitate to get in touch with the team at Crane Worldwide Logistics. 


 

 

 

 

 

United Kingdom

On July 26th, Boris Johnson became the new leader of the Conservative Party and the United Kingdom's Prime Minister. His appoingment promises a new approach to Brexit, and that the UK will depart on October 31st with or without a deal. The immediate effect of which was to cause the value of the Sterling to drop. 

Parliament have drawn the lines in the sand and are ready to overrule the government to prevent the UK leaving without the deal, essentially the same issue that faced Theresa May. Given the default position, as far as the EU is concerned, remains No Deal businesses should step up their preparations for this scenario. A series of publications are made available on the UK's government website and a new help line has been set up. 

European Union Trade Update  

A new comprehensive trade deal has been agreed between the EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay. Venezuala having been suspended in 2017). The new deal covers: tariffs, rules of origin, technical barriers to trade, sanitary and phyosanitary measure, services, government procurement, intellectual property, sustainable development as well as small and medium-sized enterprises.

Further information on commencing trade with this region can be ground on the European Commission Trade Help Desk 

Ireland  

Ireland's central bank have published their quarterly bulletin which raises economic growth forecasts and highlights the risk of overheating. Even given the uncertainty and risk that Brexit presents, the ecomony remains the best in Europe and is operating at full capacity. The bank also warns that a No Deal Brexit could result in a sudden economic shock as British demand for Irish goods decreases. 

 

Africa

Following four years of negotiations, African leaders have agreed a fifty five African nation trading block called the African Continental Free Trade Area (AFCFTA) which will boost intra-regional trade and grow the regional economy. 

 


Questions:

Should you have any questions relating to the information above or other issues that you may face, please don't hesitate to get in touch with the team at Crane Worldwide Logistics. 

 

Request a Quote

Let one of our client advocates build a solution that fits your logistics needs.

+1 888-870-2726

Contact Us

generalinquiries@craneww.com

1500 Rankin Road
Houston, TX 77073

+1 888-870-2726

Ethics Reporting

Follow Us