In the QAD Precision News Round-Up: 22 March 2019, Germany plans to block foreign takeover of key firms; trade in counterfeit goods soars; Mexico and Brazil reach an auto trade agreement; Royal Mail to trial e-trikes; and the challenges facing carmakers. Plus we’re currently at OTM SIG in Amsterdam and are heading to ICPA in Orlando (come say hi!).
This week, Reuters reported that Germany is to create a state-owned fund to protect key companies from foreign takeovers. Peter Altmaier, the Economy Minister proposed the fund in February. Senior government officials told Reuters that the state-owned investment fund would work with the private sector to block unwelcome takeovers. This defensive strategy is a response to China in particular. Under state direction, China is no longer simply a consumer of goods, but a competitor. Furthermore, China has also increased investment in critical sectors. Last year, China's State Grid attempted to buy a portion of a German power grid operator. The German state-owned bank KfW blocked the deal by purchasing the stake instead. For more details, please see Reuters.
The global trade of counterfeit and pirated goods has soared to $522 billion a year. This represents 3.3 percent of world trade. The figures come from a recent report by the EU Intellectual Property Office (EUIPO) and the OECD, based on data from almost half a million customs seizures by international enforcement agencies. The report found that there has been a significant increase in counterfeit goods. In 2016, counterfeit goods comprised an estimated 2.5 percent of global trade. In the European Union, counterfeit goods represent a worrying 6.8 percent of all imports. For more information, please click here.
This Tuesday, Mexico announced that the government had reached an agreement with Brazil on the free trade of light vehicles. Under the terms of the agreement, light vehicles will be subject to a 40 percent regional content requirement. Commentators believe this deal may lead to further free trade agreements between the two countries. NAFTA has been the bedrock of Mexico’s foreign trade, but the country is keen to diversify trading partners. In addition to this agreement, Mexico has also renewed auto trade quotas with Argentina for the next three years. For more information, please see Reuters.
As part of the company’s efforts to reduce carbon emissions, Royal Mail is to trial zero-emission electric trikes. The e-tricks use a combination of pedal, solar and battery power as well as brake technology. Testing is set to begin later this month and will last for approximately six months. If successful, Royal Mail may roll-out the e-trikes more widely across the UK. These zero emissions vehicles can accommodate most parcels, as well as letters and cards. They are suitable for use on roads, highways and some cycle paths. For more information, please click here.
The automotive industry is currently in the eye of an unprecedented storm that sets to chart a new direction for the industry’s entire business model for the next decade. Challenges include stringent new testing standards and CO2 regulations; the impact of e-commerce; the move towards subscriptions; compliance risks and lack of visibility across the supply chain. In the latest Precision Report, Mark Gallivan discusses industry challenges and why a fundamentally systematic approach to risk should be a priority for all car manufacturers. To read the full report, please click here.
QAD Precision is a sponsor of this year's Oracle OTM user conference in Amsterdam, the Netherlands from March 20-22, 2019. This is the seventh year QAD Precision has attended. QAD Precision is a Validated Integration partner of Oracle Transportation Management (OTM) providing users with parcel carrier rating. Integration with QAD Precision solutions expands the capabilities of OTM by providing parcel carrier rating functionality, allowing users to choose the carrier, rate and service level that best fits their needs. For more information, please click here.
QAD Precision will attend this year’s International Compliance Professionals Association (ICPA) annual conference on March 24 - 27, 2019 in Orlando, Florida. Attendees can learn how QAD Precision helps streamline trade compliance to gain efficiencies, mitigate risk, reduce cycle time and trade-related costs, and gain a competitive advantage. The team will also be demonstrating QAD Precision's newest solution, QAD Precision Free Trade Agreements. The solution determines origin under any FTA recognized by the WTO. It reduces the burden of compliance by automatically qualifying goods according to current preferential Rules of Origin legislation and automated soliciting for supporting documentation. For more information, please click here.
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