3 Big Stories in International Trade
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1. Strike at UK’s biggest container port
A second day of strike action is under way at the UK's busiest container port after workers walked out on Sunday in a pay dispute.
The union Unite said about 1,900 of its members were taking action, expected to last eight days, at the Port of Felixstowe in Suffolk.
A 7% pay offer from the port operator was described as "significantly below" the rate of inflation by Unite.
The decision to strike was described by the port as "disappointing".
A picket line formed for a second time on Monday, with the union saying it would be staffed until 22:00 BST each day of the strike.
The Port of Felixstowe handles about 48% of container trade, and employs about 2,550 people.
Unite national officer, Robert Morton, acknowledged it had not put the employer's offer to its members but said they had wanted an improved pay offer in line with at "least the rate of inflation".
"So when we get further up the negotiations, perhaps we will put an offer to them, but it certainly won't be at 7%," he said.
He suggested a figure between "7% and 12.3%" would be "acceptable".
Mark Woodward, from DFDS Seaways, said: "Longer term, if the situation isn't resolved, it's going to have a reputational impact both on ourselves as DFDS and the Port of Felixstowe as a safe operating zone and customers will look necessarily elsewhere."
Container logistics company, Maersk, has said eight days of no operation will have a "significant impact" and it has been left with "no choice but to omit three services".
Strike action at the port is expected to last until Monday, 29 August.
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2. UK agrees two deals with major gulf trading partner Qatar
The UK enhanced its relationship with our third largest Gulf trading partner, announcing two significant agreements to boost trade and investment.
UK trade minister Ranil Jayawardena met Qatar’s Minister of Commerce and Industry H.E. Sheikh Mohammed bin Hamad Al-Thani in London today [24 August] to agree the new partnerships at the third UK-Qatar Joint Economic and Trade Committee (JETCO).
It comes after the launch of negotiations on a free trade agreement with the Gulf Cooperation Council (GGC) in June. An agreement with the GCC is an opportunity to grow an overall trade relationship worth £32.4 billion in 2020, breaking down barriers to trade and supporting jobs across the whole of the UK.
3. Philippines eligible for duty free access to exported goods to UK through DCTS
The UK is reshaping trade with developing countries through this new trading framework that will replace the UK Generalised Scheme of Preferences (GSP) and will come into force in early 2023. The Developing Countries Trading Scheme (DCTS) was announced by the Prime Minister at the Commonwealth Heads of Government Meeting (CHOGM) on 23 June and launched on 16 August by the Secretary of State for International Trade.
Total trade (goods and services) between the UK and Philippines amounts to £2 billion each year. Under the DCTS, the Philippines will continue to benefit from duty free exports to the UK on more than 80% of eligible products. This will help Philippines save up to £21 million a year. In addition, the DCTS will remove tariffs on over 150 additional products. The DCTS will also simplify some seasonal tariffs, meaning additional and simpler access for the Philippines’ exports to the UK.
The DCTS also offers generous rules of origin, making it easier to produce goods using components from other countries without losing duty-free status. It will be one of the most generous sets of trading preferences of any country in the world, helping to grow trade, boost jobs and drive economic growth.
Her Majesty’s Ambassador to the Philippines, Laure Beaufils said:
The launch of the Developing Countries Trading Scheme is a great opportunity for the UK and the Philippines to build on our strong existing bilateral trade and investment relationship. More than 80% of exported Filipino products, and 99% of total goods by value exported from the Philippines, will be eligible for duty free access to the UK. The scheme will boost our trade and provide new opportunities for Filipino and British businesses.
If you or your business need help sourcing products or improving your overseas branding in this rapidly changing trade environment, get in contact on this page or wwtrading.co!