Brexit: Temporary tariffs for agri and cars in no-deal

The UK Goverment has today published its guidelines for temporary import tariffs in the case of no-deal Brexit. According to the Cabinet, the goverment wants to protect vulnerable industries like agriculture in this kind of situation. On the other hand, the goverment reminds that 87 % of total imports by value would be tariff free.

This would mean that for example vehicle import from the EU would get 13 % tariffs in the case of no-deal Brexit. This would not apply for the car parts supply from the EU.

According to the Goverment press release tariffs would apply to 13% of goods imported into the UK. This includes:

  • A mixture of tariffs and quotas on beef, lamb, pork, poultry and some dairy to support farmers and producers who have historically been protected through high EU tariffs.
  • Retaining a number of tariffs on finished vehicles in order to support the automotive sector and in light of broader challenging market conditions’. However, car makers relying on EU supply chains would not face additional tariffs on car parts imported from the EU to prevent disruption to supply chains.
  • In addition, there are a number of sectors where tariffs help provide support for UK producers against unfair global trading practices, such as dumping and state subsidies. Tariffs would be retained for these products, including certain ceramics, fertiliser and fuel.
  • To meet our long-standing commitment to reduce poverty through trade, the government currently offers preferential access to the UK market for developing countries. To ensure that access for developing countries is maintained, we would retain tariffs on a set of goods, including bananas, raw cane sugar, and certain kinds of fish.

-Our priority is securing a deal with the European Union as this will avoid disruption to our global trading relationships. However, we must prepare for all eventualities. If we leave without a deal, we will set the majority of our import tariffs to zero, whilst maintaining tariffs for the most sensitive industries.  This balanced approach will help to support British jobs and avoid potential price spikes that would hit the poorest households the hardest, said Trade Policy Minister George Hollingberg in the release.

 

Business Finance

UK Brexit: MPs rejected the Cabinet´s deal (updated)

IMG_0852The UK Parliament has voted about the Cabinet´s Brexit deal. According to the results, the MPs have rejected the Brexit-deal by votes 391-242.

This means that the Parliament will vote on Wednesday again of no-deal Brexit and possible on Thursday for the delaying of the Brexit.

According to Bloomberg News, the City of London´s institutions are calling for urgent timetable with UK and EU.

-MPs must now say “no to no-deal and the UK and EU must urgently return to the negotiating table. We need a rapid agreement on the way forward to protect customers and jobs, said Miles Celic, the CEO of TheCityUK.

 

 

 

 

 

Business Tech

UK May: Legally binding changes to backstop

The UK Prime Minister Theresa May has informed its cabinet that PM has tonight secured new “legally binding assurances” on the Irish border backstop. According to Cabinet Office Minister David Lidington, the new wording of the changes provide information that UK has now new legally binding assurances.

The UK Parliament will have a meaningful vote on Tuesday about the Cabinet´s Brexit deal. If the Cabinet loses the vote, the MPs will get a vote on Wednesday on whether to leave without a deal. If the MPs reject that, then a vote is about the delaying of the Brexit.

PM Theresa May and the EU Commission President Jean-Claude Juncker had the meeting tonight in Strasbourg.

Business Finance

Brexit: May to meet Juncker for last-minute talks

The UK Prime Minister Theresa May will be having last-minute talks with EU Commission President Jean-Claude Juncker. Mrs May arrived in Strasbourg tonight targeting to win her Brexit deal by MPs.

This meeting is not a quarantee that there would be a new deal. For example the UK and EU did have several discussions during the weekend, and according to German Chancellor Angela Merkel it is now the British MPs time to vote.

The British pound has strenghtened 1,2 % to 1,3169 dollars. The FTSE 100 -index went up by 0,37 % to 7130 points in today´s trading in the London Stock Exchange.

The UK decision to leave the EU is in a couple of weeks, on the 29th of March 2019. The border issue related to the Irish backstop has been one of the major issues in the Brexit talks.

 

 

 

Business Finance

NBIM to review climate risk

The Norway´s Pension Fund, NBIM, will be reviewing Climate Risk. According to the information from the Ministry of Finance in Norway, the Pension Fund is to review the Climate Risk in the portfolio.

The information was given at the same time when the Fund decided to exclude the oil & gas exploration and production companies from the Fund.

– Climate risk is an important financial risk factor for the GPFG, and will over time have an impact on several of the companies in which the GPFG is invested. The Ministry of Finance will ask Norges Bank to review its efforts relating to climate risk in the GPFG, with a view of strengthening efforts in relation to those individual companies accounting for the largest contributions to the climate risk associated with the Fund, according to the press release.

Companies classified as exploration and production companies by the index provider FTSE Russell will be excluded from the GPFG’s benchmark index and investment universe in a longer term perspective.

 

Business Finance

Deutsche Bank and Commerzbank in merger talks

The two big German banks, the Deutsche Bank and Commerzbank (CBK) are having merger talks. According to several news sources, the German Goverment has already given positive signs to the possible merger. According to Reuters, the decision should be announced in the coming weeks.

If the merger would take place the combined banks would have a market value of 24 billion euros, while at the moment the Deutsche Banks (DBK)´s value is at 15,90 billion euros. The both banks have had downward trend in the stock market, while Deutsche´s share has decreased 13 % and Commerzbanks´s 12,4 % during a year period.

Deutsche Bank´s revenue was 5553 million euros in 2017 compared to Commerzbank´s 2036 million euros. Deutsche´s profit margin was -7,65 % and Commerzbank´s 5,55 %.

The German Goverment owns over 15 % of the Commerzbank, while Deutsche is owned by institutional shareholders, which represent 81 % of the shares. Majority of shareholders are located in Germany.

Business Finance

Brexit: UK Goverment accepted citizen rights – Merkel and Macron in Paris

The UK Goverment has accepted the citizen rights in the Brexit depate in the Parliament today evening. According to Reuters, UK will turn to European Union to try to secure citizen´s rights if there will be no-deal Brexit.

“I’m happy to confirm … that we will write to the EU institutions and that this will be done in the coming days,” Brexit minister Stephen Barclay said according to Reuters.

The question of delaying the Brexit has got support from Germany and France. The German Chancellor Angela Merkel and the French President Emmanuel Macron commented the Brexit-situation in Paris today.

Both countries would give more time if needed, but the message from President Macron was that there need to be choices taken in order to extend the timeframe.

The German and France leaders were having trade talks in Paris and the countries agreed to present  Bryssels a new industrialstrategy with China. They also talked about the EU army, which the countries have different approaches at the moment.

The German Chancellor Angela Merkel pointed out, that the EU countries must have a clear and unite exports strategy regarding the army products, while at the moment they have different views for example regarding Saudi Arabia.

Business Finance