QAD Precision News Round-Up: 24 January 2020

In the QAD Precision News Round-Up: 24 January 2020, IMF downgrades 2020 forecast; Mnuchin vs Javid at Davos; Nestlé to invest in greener packaging; UPS Foundation helps three different relief efforts; DHL joins Corporate Electric Vehicle Alliance; plus the differences between USMCA and Nafta. 

Global Trade

TARIFFS AND TECH TAX: UK AND US WAR OF WORDS 

Relations between the US and the UK have soured this week during a panel discussion at Davos. British chancellor, Sajid Javid, said the UK planned to go ahead and tax which will hit US tech giants like Apple, Amazon and Facebook. In response, US treasury secretary Steve Mnuchin threatened retaliatory tariffs on UK automobiles. However, earlier this week, France agreed to suspend a similar tax measure, at least until the end of the year. The suspension will allow time for a multilateral coordinated agreement on tax reform. For more information, please see the BBC. 

IMF DOWNGRADES ECONOMIC GROWTH FORECAST

The International Monetary Fund has downgraded its forecast for economic growth in 2020. Last October, the IMF projected growth of 3.4 percent in 2020. The IMF has now revised its forecast to 3.3 percent. According to the IMF, the downgrade is a response to weaknesses in emerging markets, such as India, Mexico, Chile and South Africa, as well as growing social unrest. Nonetheless, this figure is an improvement on the IMF’s reckoning of 2.9 percent growth in 2019. For more details on the please see CNN. 

Environment

DHL JOINS CORPORATE ELECTRIC VEHICLE ALLIANCE

DHL is one of eleven major companies to join the Corporate Electric Vehicle Alliance. This is a new initiative, led by Ceres, an organization that advocates for sustainability. Other companies that have signed up include Amazon, AT&T, Genentech, Ikea North America and Siemens. The alliance aims to promote the rapid adoption of zero-emissions electric vehicles. The Corporate Electric Vehicle Alliance will also help businesses set and meet targets to electrify their fleets as well as advocate for policy changes. You can read more about this at Supply Chain Dive.

NESTLÉ TO INVEST IN GREENER PACKAGING

Food giant Nestlé is to invest up to $2.1 billion in sustainable packaging. The company is planning to move towards food-grade recycled plastics. In addition, Nestlé will launch a fund to invest in start-ups focusing on greener packaging initiatives. The company reaffirmed its 2018 pledge to make all of its packaging recyclable or reusable by 2025, and reduce the use of virgin plastics. For more information, please see Supply Chain Dive and Nestlé’s press release. 

Carriers

UPS TO HELP AUSTRALIA, PUERTO RICO AND PHILIPPINES

The UPS Foundation is to contribute US$500,000 and bring in life saving supplies to support relief efforts in Australia, Puerto Rico and the Philippines. Australia is fighting one of the countries worst bushfire seasons, which began in September last year. Due to continuous earthquakes, Puerto Rico is without power and around a quarter of a million people have no water. In the Philippines, the eruption of the Taal Volcano has destroyed homes and has devastated  much of the region. The UPS Foundation is working via other relief efforts and groups to assist their operation. For more details, please see Supply Chain Digital.

QAD Precision News

THE USMCA IS COMING: ARE YOU READY?

On Thursday, 16 January, the US Senate voted to approve the United States Mexico Canada Agreement (USMCA). The trade deal passed with a comfortable majority — 89-10 — and President Donald Trump will now sign it into law. Mexican President Andres Manuel Lopez Obrador welcomed the Senate’s approval. Canada has yet to approve the deal. Nonetheless, the wind is at the USMCA’s back. Canada’s Deputy Prime Minister, Chrystia Freeland, claimed that approving the USMCA will be a “a top priority” when Canada’s parliament returns to session on 27 January. 

The updated trade agreement shares many similarities with its predecessor, the North American Free Trade Agreement (Nafta). However, there also are a number of key differences. In this QAD Precision Report, we look at some of the key differences between the USMCA and Nafta. To read the full report, please click here.

QAD INSIGHTS WEBINAR SERIES: BREXIT, WTO RULES AND EU/UK TRADE

QAD along with QAD Precision is to host a webinar on Brexit and the impact of WTO rules on EU/UK trade.

The UK is due to leave the European Union on 31 January 2020. After this, a transition period will run until 31 December 2020. As a result, there will be only 11 months for the two sides to negotiate and agree on a future trade deal. 

Join our webinar on 6 February 2020 at 10:00am to 10:30am Central European Time. During the webinar we will discuss the impact should the UK and EU fail to come to terms, and revert to World Trade Organization rules.

This 30 minute webinar, part of the QAD Insights webinar series, will also show how QAD Precision enables enterprises to:

• Save money and reduce regulatory headaches with consolidations

• Automate export/import documentation production

• Simplify the classification of goods

• Easily assess product lines under any WTO free trade agreement

• Ensure ongoing compliance with export and import regulations

To register for the webinar, please click here.