In the Precision Software News Round-Up: 29 June 2018, Amazon wants you to deliver its packages, China and the EU plan to update global trade, FedEx and Volvo Trucks test platooning in the US, and in the Precision Report, we look at the high cost of financial compliance violations.
PRESIDENT TRUMP THREATENS 20% TARIFF ON EU CARS
This week, President Donald Trump threatened to impose a 20 percent tariff on cars imported from the European Union. President Trump wants the EU to remove import duties and other barriers to US goods, and therefore he may be using the threat of tariffs to pressure the EU. According to a European Commission memo, the bloc will retaliate by introducing equivalent penalties. It is also possible that the US could claim that the tariffs are in the interest of national defense. This May, the Commerce Department began an investigation on whether the import of cars undermines national security by damaging the US’s auto industry. You can read the full report on Bloomberg.
EU AND CHINA TO UPDATE GLOBAL TRADE
The European Union and China are to work together with the aim of updating global trade rules. Areas under discussion will include technology and government subsidies. Jyrki Katainen, vice president of the European Commission, claimed that the recent steel tariffs and China’s technology policy, among other issues, made it clear that the World Trade Organisation needed modernization. He added that updating the WTO was necessary for multilateral trade. The US government has also claimed that the WTO needs restructuring. For more on this story, please see The Irish Examiner.
AMAZON WANTS TO ENCOURAGE ENTREPRENEUR CARRIERS
Amazon is hoping to encourage people to set up small businesses to deliver its packages. The retail giant has its own logistics operations, including planes and truck trailers. However, it relies on carriers, such as UPS, USPS and FedEx, to fulfill “last mile” deliveries. It seems that with capacity at a premium, higher rates and delays during peak season, Amazon also wants to exercise greater control over last mile deliveries as well. According to the Wall Street Journal, Amazon’s US package shipments have more than doubled in the last five years.
The company will offer Amazon-branded delivery vehicles and uniforms to these startup carriers. These can only be used for delivering Amazon packages. Amazon also plans to offer technology and training, plus discounted insurance and vehicle leases. Furthermore, there is a fund of $1 million for military veterans who wish to become carriers. “Customer demand is higher than ever and we have a need to build more capacity,” explained Dave Clark, Amazon’s senior vice president of worldwide operations. For more on this, please see Fortune or Supply Chain Dive.
FEDEX AND VOLVO TRUCKS TEST “PLATOONING”
FedEx and Volvo Trucks have been testing a technique known as “platooning” in North Carolina. Platooning tightens the space between freight trucks traveling on a highway. As a result, it can relieve traffic congestion and reduce fuel consumption as well as increase safety. During the platoon, three Volvo AB trucks pull FedEx trailers separated by about 140 feet. Drivers in the two trailing vehicles must steer, but braking and acceleration are done by computer. The test leverages a Volvo-designed system that keeps vehicles in sync on maneuvers. Two years ago, Volvo platooned trucks through Europe to Rotterdam. For more on this story, see Bloomberg.
EU SANCTIONS 11 VENEZUELAN GOVERNMENT OFFICIALS
This week, the European Union imposed economic sanctions on 11 senior Venezuelan government officials. The sanctions were a protest to the reelection of President Nicolas Maduro. The EU claims the elections were not free or fair. The sanctions include new travel bans as well as asset freezes. Officials sanctioned include industry minister and former vice president Tareck El Aissami. The United States has also sanctioned Aissami for drug trafficking. The Venezuelan government denounced the sanctions and accused the EU of “flagrant subordination” to the US government. For more on this, please see Reuters.
THE PRECISION REPORT
THE HIGH COST OF FINANCIAL COMPLIANCE VIOLATIONS
What does one of the world’s largest banks and a famous global electronic payment service have in common? Both received large fines for financial compliance violations. Banks and financial institutions are subject to a complex web of global financial compliance requirements. This is because of the need to ensure that international transactions are not supporting terrorism, criminal activity or the proliferation of nuclear weapons. In the latest Precision Report we look at areas of risk as well as strategies to ensure ongoing financial compliance. To read the full report, please click here.