Tag: trade

Three steps the UK Government must take now to solve the Brexit border chaos

The current trade disruption between the UK and the EU is the result of ignoring expert advice and a chaotic information campaign, which must urgently be solved in three steps, says leading London accountancy firm Blick Rothenberg.

Alex Altmann, a partner and head of the firm’s Brexit advisory group, says: “We warned about serious disruptions many months ago and advised the Government to introduce an implementation phase for businesses to cope with the new customs formalities.

“The foolishness and amateurism of the Government’s approach has created existential threats to many businesses on both sides that currently struggle to trade with each other. The disruptions must urgently be solved in three steps.

“First, the Government must temporarily relax the requirement for EU traders to have an office in the UK to import goods, and subsequently ask the EU commission to do the same. The most serious problem today is that businesses without a presence in the other market cannot import their goods without appointing a customs agent.

“ This is how the new customs rules have been designed by the UK and the EU as part of the Brexit deal. This is a serious flaw. Customs agents are rare and very expensive and the UK currently requires about 20,000 more agents to meet demand. The Government should take this step very urgently to avoid a major supply chain disaster in the weeks ahead.”

Altmann added: “Second, the Government needs to admit that their expensive Brexit information campaign has not prepared businesses well enough for the new trade relationship with the EU. The guidance provided by the UK Government contains conflicting information, not enough detail, and to some extent, wrong advice.

“This has become particularly apparent with regards to the new border situation with Northern Ireland. It has become clear that the Government’s guidance has not been drafted by trade and customs experts, which is a serious shortcoming.

“The Government must take a step back now and relax the rules for the time being, while redrafting guidance and advisory papers based on the final Brexit deal arrangements. This is the only way to overcome the misinformation and provide traders and freight carriers with the confidence they need to sell cross-border.”

Altmann, who is also a Chairman at the British Chamber of Commerce in Germany said: “  “Thirdly, there are some serious flaws in the Brexit trade deal that the Government must put high up on the agenda to clarify and potentially renegotiate with the EU.

“ One area that continues to create confusion among traders and their freight carriers is the new rules of origin provision. The Government presented the Brexit deal as a tariff and quota free agreement. This is only partly true. Tariffs still apply in the normal way for manufactured goods which contain more than 40 percent of ingredients with origins outside the UK or EU.

“There is no guidance of how businesses should calculate and document the origin analysis. This is causing major disruptions to supply chains. Again, we recommend that the new rules of origin are temporarily paused until there is sufficient guidance and expertise available to work this out.”

Trade and Investment Minister to visit China

Trade and Investment Minister Ivan McKee will visit China this week to promote the growing economic, cultural and educational links between Scotland and the world’s second largest economy.

He will visit Beijing, Shanghai (above) and Hangzhou, conducting a series of high-level business and government meetings, as well as cultural engagements.

The visit is an opportunity to progress the Scottish Government’s China Strategy and build on the success of the First Minister’s visit to China in April 2018.

Latest overall export figures show exports from Scotland to China were worth £625 million in 2017 – rising from £590 million in 2016.

Food and drink exports to China were worth £130 million in 2018 – an increase of 10% since 2017 and up 177% since 2007. This includes growing demand for exports of Scotch Whisky to China which were worth £76 million in 2018. Last week, whisky distillers Gordon & MacPhail announced they are releasing a 70 year old malt exclusively for the Chinese market through distributor Spirit Empire.

Mr McKee said: “I am delighted to be visiting China to promote the long-standing friendship between our two countries.

“As the world’s second largest economy, there are huge opportunities for Scottish businesses to work with China. In particular, China is an important export market for Scottish products, especially food and drink, but also many other sectors including engineering and financial services. I hope our new Export Growth Plan helps build on these opportunities even further.

“There are strong educational and cultural links between our countries too. I’m pleased to be travelling with the message that Scotland is a fantastic place to invest, to do business, to study and to visit.

“During my visit, I will also meet Chinese Government representatives and look forward to discussing ways in which we can work together for the mutual benefit of our two countries. Following on from the First Minister’s visit to China last year, we will continue to talk about the importance of equality of opportunity and respect for human rights.”

China has been identified as one of Scotland’s priority markets in the Scottish Government’s new Export Growth Plan – ‘Scotland: A Trading Nation’ and on Scotland’s Export Performance Monitor

From Scotland to Canada: Burns night boost for haggis exports

Scots around the world celebrate Burns Night

Tonight, Scots in Canada will be celebrating Burns Night with a hearty serving of haggis, thanks to the rise in exports from Scotland’s largest producer of the iconic meat pudding. Continue reading From Scotland to Canada: Burns night boost for haggis exports

Oor castle’s going green for St Patrick’s Day!

No, it’s not 1 April – Edinburgh Castle really is turning green …

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Castle gesture ‘symbol of mutually important relationship’.

Edinburgh Castle will be bathed in green light to mark St Patrick’s Day, Cabinet Secretary for Culture, Europe and External Affairs Fiona Hyslop has announced during a visit to Dublin.

Ms Hyslop said that Scotland and Ireland greatly valued their relationship, and that it was fitting that one of Scotland’s most iconic buildings would turn green for Ireland’s national day.

The Castle joins a host of global landmarks celebrating Ireland’s national day, including the Colosseum in Rome and the Sacre-Coeur Basilica in Paris.

Ms Hyslop has travelled to Ireland to address the British Irish Chamber of Commerce on the importance of Scotland and Ireland’s membership of the EU, which facilitates trade to take place between the two nations and gives Scottish companies access to the fastest growing economy in Europe.

Scotland also benefits from significant Irish investment – with 85 Irish owned companies operating in Scotland, employing nearly 6,000 people with a turnover of £2.4 billion.

Ireland is Scotland’s 8th largest export market with £815 million exported to Ireland in 2012, and trade from Ireland to Scotland has been estimated at around £300 million and growing. Ireland was the EU’s fastest growing economy in 2014 and is expected to be so again in 2015. Both countries value their membership of the European Union, and the two have worked together to secure EU funding for 19 joint projects, with a joint value of £30 million.

Ms Hyslop said: “Turning one of Scotland’s most iconic buildings green for St Patrick’s Day is a fitting way to show the importance we place on our relationship with Ireland, and a celebration of the friendship which exists between our two nations.

“Our economic links with Ireland, our work together in the European Union, and the shared value we place on our membership of that union, show how much we have to gain from strengthening our relationship.

“Irish investment makes a substantial contribution to Scotland’s economy. Irish-owned companies in Scotland are responsible for nearly 6,000 jobs and turnover of £2.4 billion, while Scottish exports to Ireland are worth £815 million a year.

“Ireland and Scotland have different identities and experiences, but we are united by elements of shared history, culture and language – and so it’s appropriate that Edinburgh Castle, with its important place in Scotland’s history and culture, goes green for St Patrick’s Day.”

Irish Minister for Foreign Affairs and Trade, Charlie Flanagan, who visited Edinburgh just a fortnight ago, warmly welcomed the announcement that Edinburgh Castle will be illuminated in green to mark Ireland’s national day.

He said: ‘I very much appreciate this generous gesture from the Scottish Government. The addition of such a landmark to the already impressive list of iconic locations going green on St Patrick’s Day is another important moment in the friendship between Ireland and Scotland and literally highlights our ever-strengthening links. The theme for my recent visit to Edinburgh was embarking on a ‘new chapter’ in Irish-Scottish relations. Today’s announcement is a really significant and visible way to underline that.”

I’m not convinced the ‘greening’ of Edinburgh Castle will go down too well with some sections of Scottish society. What do you think?