In today’s trade news, UK chancellor Rachel Reeves has avoided ruling out tax rises in her ‘scene setter’ speech, widely regarded as a preview of the budget, as she spoke of making the UK an “open, trading economy”.
In other developments, the Department for Business and Trade has released new guidance on Russia sanctions that is specifically tailored for freight forwarders, customs agents and hauliers, while a pacific trading bloc receives new applications to expand.
Tax rises?
Chancellor Rachel Reeves has refused to rule out tax rises in a pre-budget speech.
Labour had promised not to raise VAT, income tax or corporation tax prior to the 2024 General Election. However, in her speech Reeves said that she would take decisions in order to balance the books.
“I will make the choices necessary to deliver strong foundations for our economy – for this year and years to come.
The chancellor said that productivity levels that she “inherited” from the previous Conservative government was “worse than previously thought”. Reeves also criticised the “rushed and ill-conceived Brexit” of her Tory predecessors, while also pointing to the economic turbulence caused by US president Donald Trump’s tariffs.
She added that she was not satisfied with 1% GDP growth and would focus this Budget on reducing inflation.
Russia sanctions
The government has released new guidance on the Russian sanctions regime, with a specific publication aimed at freight forwarders, hauliers and intermediaries.
“Freight is a crucial service, and you may spot attempts to circumvent sanctions when transporting or facilitating the transport of goods”, the guide’s foreword noted.
The document highlights goods that are at risk of being diverted to Russia, red flag indicators of potential sanctions evasion methods and compliance best practice.
Examples of red flags included any goods that had a similar or adjacent customs code to a higher-risk good, shipments of products that would appear “unusual or inconsistent” with what would normally be expected or any discrepancies in the weight or dimension of a product.
A more general guide on the Russia sanctions regime was also issued today.
The Office of Trade Sanctions Implementation warned that it remained the responsibility of UK businesses to comply with sanctions rules, including determining their own levels of risk exposure.
TPP
Nikkei reports that the Philippines and the UAE have applied to join the Trans-Pacific Partnership (TPP) as a way to counter Trump’s tariffs.
Japanese officials told the news site that the bids were submitted in August. South Korea is also said to be considering joining.
The TPP, which is a separate agreement to the Comprehensive and Progress Trans-Pacific Partnership (CPTPP), requires all 12 members to agree on new applicants. A ministerial meeting is expected later this year.
What else is in the news
· The Telegraph reported that US factories are suffering from “unprecedented” rises in unsold stock as a result of Trump’s tariffs
· Forty legal briefs have been filed to the US Supreme Court case on president Donald Trump’s tariff programme
· The US states of New Jersey and Virginia will elect new governors today, while New Yorkers also head to the polls, as the high-profile mayoral race draws to a close
· The Organisation of the Petroleum Exporting Countries has announced a pause in oil production rises next year, as analysts warn of a market “glut”
Yesterday in trade
· International Trade Week began yesterday, with events taking place across the UK
· Ryanair said that European tourists were avoiding trips to the US, as the airline reported a 40% increase in profits as a result of this change in travel patterns
· Trump said that Nvidia’s most advanced microchip will not be available in countries besides the US, as well as playing down the idea that he could go to war with Venezuela
You can read it all here.
