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.
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.
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.
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
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.
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
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 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
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.