It’s another day of deal-making in global trade, with European Commission President Ursula von der Leyen preparing to head ‘down under’ to clinch an EU agreement with Australia.
Many African exporters will also be breathing a sigh of relief as the Trump administration has renewed a trade pact with various African nations.
Back in the UK, the government has rebuffed EU overtures on a customs union, and it is also asking for exporter and importer feedback on its Border Target Operating Model (BTOM).
BTOM feedback
The Department for Environment, Food & Rural Affairs (Defra) is looking for feedback from exporters, importers, hauliers, logistics and customs professionals on how BTOM is operating.
“We want to understand stakeholders’ on-the-ground experiences - the processes and checks followed at the border, how these work in practice and any operational challenges encountered,” Defra officials said in an email to key industry stakeholders, including the Chartered Institute of Export & International Trade.
Defra has commissioned independent research agency Ecorys to gather industry feedback, which will involve 60-minute interviews conducted on Microsoft Teams throughout February. Volunteers are asked to email BTOMresearch@ecorys.com by 20 February to participate.
Interviewees will be asked for their views on BTOM’s biosecurity aims and border checks, including “operational improvements and challenges experienced since BTOM implementation”, as well as how “business models have adapted to comply with BTOM border regulations”.
The research will also investigate whether “changes to supply chains and practices (e.g. groupage) are likely to persist” in the face of the UK’s efforts to reset trade conditions with the EU, including through a proposed Common Sanitary and Phytosanitary (SPS) Area.
UK-EU customs union rejected
The UK-EU reset looks unlikely to result in the recreation of a customs union after the government rebuffed the idea yesterday.
EU economy commissioner Valdis Dombrovskis told the BBC that the bloc was “ready to engage” and “open-minded” about the idea of working on a customs union, which would result in the removal of various customs obligations and tariffs, but would curtail the UK’s ability to strike trade deals with other partners.
However, the Telegraph reports that Sir Keir Starmer will not pursue this, reiterating the Labour Party’s manifesto pledge to forge closer ties with the EU without returning to either the customs union or single market.
The UK has, however, struck a new deal with Japan to strengthen science and technology ties.
EU-Australia deal imminent
Ursula von der Leyen will travel to Australia later this month in a bid to secure a trade and security deal.
Europe’s trade commissioner, Maroš Šefčovič, is already due to visit the country next week, with the two sides looking to resolve disagreements over beef and lamb quotas.
The deal will “open access to the country’s vast reserves of strategic minerals” including lithium and copper, according to Politico. However, like the EU’s recent agreement with South African bloc Mercosur, there is likely to be some pushback on the opening of the European market to Australian agricultural exports.
“Australia, however, is viewed in Brussels as a strategic and like-minded partner as the EU seeks to diversify its trade relationships, expand access to global markets and reduce exposure to a closing US market and China’s increasingly aggressive trade policy,” Euronews reports.
US renews AGOA
US President Donald Trump has signed into law a one-year extension of the African Growth and Opportunity Act (AGOA).
The agreement removes US customs duties on more than 18,000 products for sub-Saharan African countries.
“Its expiry had disrupted trade and threatened jobs across the continent,” according to All Africa.
Rupee rises on US-India deal
Another significant US trade deal is affecting currency markets, with the Indian rupee seeing its biggest one-day gain in value in seven years, the FT reports.
Following the announcement earlier this week that a US-India trade deal was on the way, the rupee strengthened 1.36% against the dollar.
Trump said on Monday that his country would lower tariffs on Indian exports to 18% in exchange for Indian commitments to stop buying Russian oil.
Despite Trump’s proclamations of this change from India, analysts have separately told the FT that they are sceptical about the likelihood of New Delhi moving away from its “strategic partnership” with Moscow.
Also in trade today
- Nvidia’s sales of H200 AI Chips to China have been stalled by a US security review, the FT reports
- Port investors CK Hutchison have launched arbitration proceedings against the Panamanian government after the country annulled two of its licences to operate Panama Canal ports, reports Reuters
- Singer Kate Nash has said she’s had to turn to OnlyFans to cover touring costs, with Brexit one of the forces cutting into revenues for performers, according to the Times
Yesterday in trade
- UK-EU talks over the Common SPS Area made progress
- The US reduced tariffs on Indian exports
- The UK’s deal with India was scrutinised by the International Agreements Committee
You can read yesterday’s trade news here.
