In the QAD Precision News Round-Up: 17 December 2021, South Korea
wants to join CPTPP; UK delays post-Brexit checks on Irish goods; UK
and Australia announce trade deal; UK retail sales up; plus
foreign-trade zones for pharma and more.
South Korea’s Finance Minister Hong Nam-ki has announced that the
country will start the process for joining the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP). The South
Korean government will submit the application to join the trade deal.
However, to join the CPTPP, an applicant must receive approval from
all existing members.
In September, both China and Taiwan applied for CPTPP membership,
while the United Kingdom submitted an application in February. For
more information, please see The
The British government has announced that it will postpone the
additional post-Brexit checks on Irish exports to the UK that were due
to kick in on January 1st, 2022. The checks would have included
significant additional requirements and would have affected food and
drinks exports in particular.
When the UK left the EU, the UK delayed the implementation of some
checks. As a result, British importers of goods from the EU were able
to postpone making advance customs declarations and paying the
relevant tariffs. These checks are set to come into force in January.
However, the checks on Irish goods are being postponed while talks on
the Northern Ireland protocol continue between the EU and UK. For more
details, please click here.
On Friday morning, the UK and Australia announced that they signed a
free trade deal. The two sides had been in negotiations over issues
such as market access for farm goods since the two countries agreed
the outline of the deal in June 2021. The trade agreement will reduce
tariffs on products including Scotch whisky, clothing and cars.
Furthermore, it will cut levies on agricultural products. According to
official analysis in 2020, the deal should boost UK GDP by 0.02
percent over the next 15 years.
The deal also eliminates tariffs on 99 percent of Australian exports
to the UK. Furthermore, under the agreement, Australian nationals will
have easier access to working and living in the UK. For more
information, please see Bloomberg
and the BBC.
Parcel Monitor has revealed data highlighting preferred delivery
methods across the world as e-commerce and B2C delivery demand grew
during the pandemic. Perhaps unsurprisingly, home delivery was the
favored delivery option across most regions. However, out-of-home
(OOH) delivery methods are gaining in popularity. In the third quarter
of this year, 13.4 percent of parcels deliveries in Oceania used OOH methods.
Worldwide, the most popular OOH delivery method was collection
points. Consumers in Asia were most likely to pick-up their parcel
from a post office while parcel lockers were the most popular in
Europe among all regions. For more details, please click here.
DHL Supply Chain has made a US order for 100 self-driving trucks. The
trucks, manufactured by Navistar and equipped with TuSumple’s
self-driving technology, should be delivered between 2024 and 2025.
Earlier this month, DHL and TuSimple partnered to transport daily
hauls between Dallas and San Antonio, Texas. At present, the hauls are
operated by trucks owned by TuSimple.
The carrier is also partnering with other suppliers of self-driving
technology. In October, DHL ordered 100 trucks from Embark Trucks Inc.
It is also considering other vendors. For more information, please see
In November, UK retail sales jumped due to Black Friday and shoppers
making early Christmas purchases. According to the Office for National
Statistics (ONS), retail sales volumes grew by 1.4 percent in
November, an increase on October’s growth of 0.8 percent. The result
was 0.6 percent higher than analysts had forecast. Non-food stores
sales volumes expanded by 2 percent in the period driven by increases
in clothing stores and other non-food retail. In addition, the value
of online spending grew by 0.1 percent last month. Conversely, the
proportion of online sales declined to 26.9 percent from 27.3 percent
in October. For more details, please see Retail
Pharmaceutical companies and their contract manufacturers are
flocking to foreign-trade zones (FTZs) to lower costs, speed delivery,
and improve regulatory compliance.
Foreign-trade zones were first established in 1934, but were not
significantly utilized by US-based manufacturers until the 1980s.
In 1995, the US-tariff structure was changed. These changes created
an “inverted” tariff-rate relationship between imported raw materials
and finished pharmaceutical products. Many raw materials used to
produce pharmaceutical products carry a higher duty rate than the
finished products. As a result, US-based pharmaceutical manufacturers
not using an FTZ are inadvertently penalized by this inverted tariff
structure. In this QAD Precision Report we look at the benefits of
foreign-trade zones for pharmaceutical companies. Read the full report