2022 February Update #1: Trade Deals, RCEP, America Trade, Pakistan Textiles, Trade Finance Awards, Singapore Shipping

India

UK is in discussions with India for a free trade agreement – India is a £2 trillion economy and will be the world’s biggest importer by 2050. The risk is that UK services are undercut by cheaper Indian labour. The Prime Minister held talks in January to double UK exports to India to £28bn per year by 2035.

EU & Greenland

The UK has launched trade talks with Greenland to reduce or remove tariffs up to 20% on seafood

The EU accounts for 42% UK exports and is our biggest trading partner. The EU-UK Trade and Cooperation Agreement aims to continue free trade with Europe but companies must be aware of rules of origin.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The UK plans to become a member of the CPTPP with Australia, Japan, Chile, Singapore and 7 other nations.

Australia

UK has negotiated its own deal with Australia, the first free trade deal and will be put forward for ratification

The Regional Comprehensive Economic Partnership (RCEP) known as the ‘world’s largest free trade agreement’ came into effect on 1 January for 15 member countries and includes a third of the world’s population. Members are South-East Asia plus Australia, China, Japan, New Zealand and South Korea. It will come into force in November 2022. it took 10 years to negotiate and will eliminate a number of tariffs. It will mostly affect rules of origin. Some say it is a China backed alternative to the TPP which 12 member states signed before Trump backed the US out in 2017 with the remaining members signing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The UK is not yet a member however the Policy Exchange’s Indo-Pacific Commission published its 2021 report stated that the Indo-Pacific is the most important region for expanding UK trade after Brexit.

What does Biden mean for America trade? Some say his biggest successes have been with the EU for example Section 232 steel & aluminium products, commercial aviation and ameliorating some of the Boeing-Airbus friction and establish the Trade Technology Council or TCC to address working standards. However, Section 302 tariffs imposed on Chinese imports.

Pakistan textiles exports are reported to rise 40% this year due to a shift in orders from Bangladesh and India when Pakistan allowed its factories to open earlier than the other 2 countries, attracting customers like Target. the Government has plans to incentivise more new markets such as Africa, South America & Asia. Pakistan is planning to incentivise the textile industry with tax breaks, cheap loans, and electricity, and a 60% decline in the currency. Pakistan has sought IMF rescue 13 times since the 1980s and is a net importer of food.

Best Trade Finance Provider Bank: BNP Paribas

Best Trade Finance Provider Non Bank: Finastra

Most Innovative Bank: Shinhan

Best Trade Document Management: Standard Chartered

Best Use of Artificial Intelligence: Sberbank

Best Sustainable Finance Solutions Provider: GeTS Asia

Best Software Provider: CGI

Best DLT Platform: we.trade

Best Export Finance Bank: Ahli United Bank

Best Emerging Markets Bank: VTB Bank

Best Frontier Markets Bank: TDB

Updates to the Singapore Chamber of Maritime Arbitration Rules were recently published by Singapore Chamber of Maritime Arbitration (SCMA) effective 1 January 2022. A range of rule changes were enclosed in the 4th edition regarding remote & virtual hearings, efficiencies & prioritising speed / cost. In addition, arbitration is now likely to become more streamlined with the allowance of 2 arbitrators in the same way the London Maritime Arbitrators Association LMAA rules allow.

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