QAD Precision News Round-Up: December 2020

In the QAD Precision News Round-Up: 11 December 2020, EU sets out no deal contingency plans; large truck queues at Dover; UK to drop US tariffs; DHL to store 2.2 million coronavirus vaccine doses; plus five ways to simplify post-Brexit UK/EU trade and more.

Global Trade

EU SETS OUT POST-BREXIT CONTINGENCY PLANS IN THE EVENT OF NO-DEAL

The EU has set out contingency measures for how air and road travel between the EU and UK will remain undisrupted from January 1 and warned that the likelihood of a deal is uncertain. Following a meeting between European Commission President Ursula von der Leyen and British Prime Minister Boris Johnson which failed to advance talks, the two sides have until Sunday to reach an agreement. The EU’s contingency plans include proposed regulations that would permit planes to keep flying for six months between the two jurisdictions, on condition that the UK agrees the same, and to ensure the use of safety certificates for products on planes to avoid the grounding of aircraft. For more information, please see The Irish Times.  

US INFLATION MEASURE INCREASED BY MORE THAN FORECASTED IN NOVEMBER 

In November, a measure of prices paid by US customers increased by more than predicted as costs of hotel stays, airfares and apparel rose. However, inflation elsewhere remained low as the coronavirus continues to restrict activity. On Thursday, Labor Department data showed the consumer price index (CPI) increased by 0.2 percent in November. Compared with 2019, the index rose 1.2 percent. The core index, a separate measure of consumer prices which excludes food and energy costs, also grew by 0.2 percent from the prior month and increased 1.6 percent from 2019. US Inflation is running below the Federal Reserve’s target of 2 percent. For more information, please see Bloomberg.  

UK AND SINGAPORE SIGN FREE TRADE DEAL

On Thursday, the UK and Singapore signed a trade agreement worth more than $22 billion (£17 billion). The deal is very similar to an existing deal between Singapore and the EU. The UK is currently undertaking a wider set of negotiations to replace trade agreements which will cease from January 1. The deal will remove tariffs and give both the UK and Singapore access to each other's markets. Additionally, non-tariff barriers for electronics, cars and vehicle parts, pharmaceutical products, medical devices and renewable energy generation will be cut. For more details, please see BBC News.  

UK TO DROP US TARIFFS IN MOVE TO EASE AIRCRAFT TRADE DISPUTE

According to the trade department, The UK is to suspend tariffs imposed on US goods as part of an ongoing row over aircraft subsidies from January 1. The move marks the UK’s separation from EU trade policy which imposed retaliatory tariffs on US goods worth $4 billion (£3 billion) in November. UK Trade Minister Lizz Truss said that by removing the tariffs, the UK aims to ease conflict and reach a negotiated settlement to strengthen its trading relationship with the US. However, if an agreement is not reached, the UK warned that it could re-impose the tariffs. For more details, please see Reuters.  

TRUCK QUEUES FOR KILOMETRES AT PORT OF DOVER 

It is reported that trucks travelling towards the English port of Dover are backed up for kilometres, just three weeks before the UK will leave the EU. In addition, trucks were stacked up along some roads in an attempt to stop the port from becoming overwhelmed. According to logistics providers, there has been an increase in demand from companies bringing parts, goods and food into the country prior to January 1. The British Government has issued a warning that even in the event of a deal, 7,000 trucks heading for the Channel ports in south-east England could be held in 100 kilometre queues if companies fail to prepare the extra paperwork required. For more details, information, please see RTE.  

Carriers

DHL TO STORE 2.2 MILLION CORONAVIRUS VACCINE DOSES 

DHL is to store approximately 2.2 million vaccine doses along with about 350 pallets of vaccination equipment for the German federal state of Lower Saxony. The vaccinations will be stored at two of its certified Life Science Health Care locations where the vaccines will be prepared for transport. Plans are in place to store the vaccine doses in different temperature ranges. From there, DHL will transport the vaccine to vaccination centers and hospitals across the state. For more details, please see Post and Parcel.  

QAD Precision News

FIVE WAYS TO SIMPLIFY POST-BREXIT UK/EU TRADE

As we write, there are still a number of unknowns for trading between the United Kingdom and the European Union after the 1st of January 2021. However, even in the event of a deal, shippers will need to comply with a number of different customs requirements. 

The EU is the UK’s largest trading partner. That is perhaps unsurprising, given the geographical closeness of Britain to the EU single market. Before the referendum to leave the EU, trading partners in both the UK and the EU forged close ties with one another. This is unlikely to change any time soon.

The uncertainty whether a UK/EU trade deal will be agreed and ratified by 1 January 2021 is making it difficult for businesses to plan. 

Brexit talks continue, but a trade deal has yet to be agreed. In this QAD Precision Report, we look at five ways to simplify trade between the UK and EU after 31 December  2020. To read the full report, please click here.