In the Precision Software News Round-Up: 28 September 2018, Canada’s NAFTA deal is still unresolved; XPO introduces a new driver training program; 37 air cargo carrier may lose EU security clearance post-Brexit; China’s tariffs on US goods come into effect; and we look at planning for Brexit.
This week XPO Logistics Inc. announced it’s “The Drive for Success” national scholarship program. The scholarships are for professional driver trainees. In addition to this, XPO also offers free CDL-A training for all employees in the United States. The Drive for Success program offers tuition reimbursement up to $5,000 to attend and complete driver-training classes outside the company. Graduates who obtain their license can then driving for XPO. For more on this, please click here.
This week, fractious NAFTA negotiations between the US and Canada continued. The United States imposed a deadline of 30 September for Canada to agree to a revised deal. It seems unlikely that Canada will sign by that date. US President Donald Trump criticized the talks for moving too slowly. Canada’s Prime Minister Justin Trudeau responded by telling reporters that “Canadians are tough negotiators, as we should be.” Trudeau also claimed that a good NAFTA deal was still possible. However, there are no plans for further talks at the moment. Around three-quarters of Canadian exports go to the US. Given this, insiders suggest that Ottawa needs to find a compromise with the US. For more on this, please see Reuters.
This week, China’s tariffs on $60 billion of imported US products — including a 10 percent tariff on beer, wine, and spirits — came into effect. Alcohol producers in the US were also impacted by US tariffs. Earlier this year, the US introduced duties of 25 percent and 10 percent on imported steel and aluminum respectively. Beer producers fill and sell approximately 36 billion aluminum cans and bottles every year. For more on this, please click here.
The European Union could ban 37 airlines and aviation-related companies from carrying or handling cargo after 29 March 2019. This could come into effect if the EU does not create a new ACC3 designator mechanism – security clearance — for them. The carriers had received their security clearances from the UK. In the event of a no-deal Brexit, the clearances would no longer apply. “The EU has set out that all security designations of carriers from third countries previously granted by the UK will be treated as expiring on the UK’s exit from the EU,” warned the UK Government this week.
The EU has not yet set out a mechanism for other EU states to reissue these ACC3 designations. The UK government also issued a notice stating that reciprocal recognition of security standards was in both the UK and EU’s interest. For more on this, please see The Loadstar.
On Tuesday, British multinational clothing retailer Next outlined its plans for trading in the event of a no-deal Brexit. Chief executive, Simon Wolfson warned that customs delays and higher prices are likely. A no-deal Brexit looks increasingly possible. The 29 March 2019 withdrawal date is looming, but there are still serious unresolved Brexit issues, including the Irish border. Theresa May’s Chequers plan — announced with much optimism in July — is under attack at home and abroad. Whatever the outcome, shippers need to plan for supply chain disruptions and a more complex trading environment. To read the full report, please click here.