1. 2022 Easier for Supply Chain
Global supply chain constraints may have peaked in October 2021 according to the Federal Bank of New York and showed lower in November and December. The measure is based on 27 factors and seems to indicate a move to easier times for global trade. Omicron, factory and shipping issues combined in late 2021 for a perfect storm of difficulties as well as the introduction of border restrictions. Although inflation is rising, experts remain buoyant about the year ahead.
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2. UK & EU to Agree Trade
Talks resumed on Friday at a mansion in Kent where both parties agreed to intensify conversations to compromise on post-Brexit trade agreements. The impetus from UK is easing goods into and out of Northern Ireland and both parties were upbeat about possibilities, in stark contrast to the combative atmosphere under Lord David Frost’s reign, the UK Brexit negotiator. There is currently a hard border between UK & Northern Ireland as a result of the most recent negotiations which is making trade difficult between UK & Ireland.
3. UK launches India negotiations to kick off 5-star year of trade
The UK and India have announced negotiations on a free trade agreement which could almost double UK exports to India, boost UK trade by as much as £28 billion a year by 2035, and increase wages across the UK by up to £3 billion. Investment from Indian companies already supports 95,000 jobs across the UK. The agreement fits in with UK’s trade strategy and Prime Minister Boris Johnson said:
A trade deal with India’s booming economy offers huge benefits for British businesses, workers and consumers. As we take our historic partnership with India to the next level, the UK’s independent trade policy is creating jobs, increasing wages and driving innovation across the country.
Read more in the Government report here.
4. EU Exports Buoyant
UK is still exporting to the EU despite difficulties in some areas. Although exports to the EU were down 12% in the first ten months of 2021, exports to no-EU locations were down 7% which means only a 5% difference. Complexity exporting goods has increased due to increased paperwork and different controls and processes however as EU is the main export market for many UK exporters, companies are finding a way through the difficulties and remaining positive of resolution.
5. Almost Half of Firms Facing Difficulties Trading with EU Under Post-Brexit Trade Agreement
BCC says that almost half British businesses that import from or export goods to Europe have found difficulties with adapting to rule changes EU Post-Brexit Trade Agreement. A quarter of respondents in the survey said that they found buying or selling services difficult. A fifth reported difficulties moving people. There were almost a thousand respondents to the survey about the agreement that was put in place a year ago. Exporters reported to suffer the most with 60% reporting difficulties exporting goods. The BCC has launched a report that offers ways to deal with the issues, it can be found here.
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