QAD Precision News Round-Up: 31 January 2020

In the QAD Precision News Round-Up: 31 January 2020, MEPs to vote on Brexit withdrawal agreement; sustainable e-commerce is important to consumers; Donald Trump signs USMCA into law; plus Brexit: What happens after 31 January 2020 and more. 

Brexit 

EU WILL HAVE STRONGER TEAM IN TRADE TALKS WITH UK, SAYS VARADKER

Irish Prime Minister Leo Varadkar has stated that the EU will be the “stronger team” in trade talks with the UK following Brexit. Mr Varadkar cited the EU’s larger population and market as being an advantage. Following trade talks between Mr Varadkar and EU chief negotiator Michel Barnier on Monday, Mr Barnier stated that the two sides face “the risk of a cliff edge” if trade terms were not agreed by the end of the post-Brexit transition period in December. For more information, please see The BBC. 

EUROPEAN PARLIAMENT GIVES FINAL APPROVAL FOR BREXIT

Britain's exit from the European Union has been put into law as the bloc’s parliament voted to ratify the withdrawal agreement on Wednesday. The UK will leave the EU at 11pm UK time on Friday (midnight in Brussels). Members of the European Parliament (MEPs) voted by 621 votes to 49 to pass the withdrawal agreement. However, many MEPs stressed that this was to avoid a no-deal Brexit, rather than support for the UK’s withdrawal from the EU. Under this agreement, Britain will leave the EU institutions but will remain under most EU rules during a transition period that runs until the end of December 2020. For more details, please see RTE.

Global Trade 

DONALD TRUMP SIGNS USMCA INTO LAW 

On Wednesday, US President Donald Trump signed the US-Mexico-Canada Agreement (USMCA) into law. At present, Mexico has already ratified the trade deal and Canada is expected to do so in the coming weeks. Retail industry representatives expressed optimism about continued free trade between the three countries. National Retail Federation President and CEO Matthew Shay stated that "We hope to see the Canadian Parliament ratify the USMCA as soon as possible so the benefits of free trade in North America can continue uninterrupted,”. For more information, please see Supply Chain Dive. 

E-Commerce 

IPC GLOBAL REPORT REVEALS CARBON-NEUTRAL DELIVERY IS IMPORTANT TO CONSUMERS 

Carbon neutral delivery and recyclable packaging is increasingly important to online shoppers around the world according to the IPC Global Postal Industry Report 2019. The survey now reaches approximately 35,700 consumers in 41 different countries across North & South America, Asia Pacific and Europe. The 2019 report revealed that 66 percent of consumers would like their packaging to be recyclable and 45 percent would like the delivery process to be carbon neutral. For more details, please see Post and Parcel. 

Carriers

DHL TO EXPAND CLEVELAND FACILITY WITH $3.8 MILLION INVESTMENT

DHL Express has announced plans to invest $3.8 million to expand its service center in Cleveland, Ohio. This investment will be used to accommodate expected international trade growth resulting from an increase in e-commerce and a strong manufacturing presence in the region. The expansion, along with the addition of state-of-the-art equipment, will maximize processing capabilities and allow earlier deliveries. For more information, please see Ajot. 

UPS TO DOUBLE WEEKEND DELIVERIES AS E-COMMERCE BOOMS 

In 2020, UPS is aiming to more than double weekend deliveries in a bid to satisfy the always-on demands of e-commerce customers. At the beginning of this year, UPS added Sunday to its weekend services. Furthermore, UPS said it aimed to expand its year-round Sunday service to an additional 40 million US customers. According to consultancy ShipMatrix, average volume of overall US weekend deliveries doubled to 13.5 million units between 2013 and 2019. For more details, please see Reuters.

UPS PARTNERS WITH SELF-DRIVING VEHICLE COMPANY WAYMO

On Wednesday, UPS and Waymo announced the launch of a parcel transportation pilot. During the trial, Waymo’s autonomous Chrysler Pacifica minivans will collect packages from UPS stores in Phoenix and deliver them to UPS sorting facilities in Tempe, Arizona for processing. A Waymo-trained driver will be in the vehicles at all times. UPS chief strategy and transformation officer Scott Price stated that the pilot will facilitate getting packages to UPS sortation facilities sooner and more frequently. Scott noted that the use of autonomous vehicles also creates an opportunity for later drop-offs for next-day service. For more information, please see Supply Chain Dive. 

QAD Precision News

BREXIT: WHAT HAPPENS AFTER 31 JANUARY 2020?

On Friday 31 January 2020 at 11pm in London — and midnight in Brussels — the UK will officially no longer be part of the European Union. While this date is undoubtedly important, in many ways it is symbolic — business, travel and people’s daily lives will be largely unaffected. 

Once the clock sounds the end of the UK’s 47 years of EU membership, an 11-month transition period kicks in. During the transition period, the UK will remain in the EU single market and customs union and must contribute to the EU budget. Furthermore, the rights of British citizens to live, work, study or retire in the EU will not yet change. Likewise, citizens of the EU27 countries will continue to have reciprocal rights in the UK.

Irish rock band U2 famously sang that “Nothing changes on New Year’s Day.” That is unlikely to be the case on 1 January 2021. That day will mark the UK’s first day outside of EU rules. British Prime Minister Boris Johnson has the option to extend the transition period until 2022 or 2023. However, the PM has repeatedly stated his intention to meet the 2021 deadline. That leaves the UK and EU a maximum of 11 months to agree on the terms of their future relationship. In this QAD Precision Report we look at the transition period and the future of the EU/UK trade relationship.To read the full report, please click here.