Following the extension to the Brexit deadline granted to Theresa May at an EU summit in Brussels from 12th April to 31st October, Rene Defossez, senior economist at Natixis, commented: “This latest delay solves nothing and won’t be an incentive for firms to invest or call off their contingency plans. This delay merely points to lastingly weak growth.”
“Brexit is much like a computer virus: it is causing malfunctions to the UK’s economic and political ‘programs’,” said Defossez. “[The] European Summit has not really acted as an anti-virus: the political situation in the United Kingdom remains deadlocked and the country’s economy will continue to suffer from Brexit-related uncertainties.”
The comments can be found in this article by The National.
A changing geopolitical landscape could adversely affect traffic volumes in the transportation infrastructure sector, as U.S.-China trade tensions escalate and Brexit approaches.
S&P Global Ratings’ analysts recently spoke to Drew Campbell, i3 senior editor, IREI, about the ramifications for transportation assets.
Specifically in the case of Brexit, one possible outcome is increased spending to balance any downside. S&P’s analysts respond: “As U.K lawmakers attempt to offset the prospects of slower economic growth following Brexit, investment in infrastructure could accelerate.”
Read the article here
S&P Global Ratings has published its latest edition of Infrastructure Finance Outlook – the quarterly newsletter reviewing the global infrastructure sectors’ key new stories.
Focusing on the rise of political and regulatory risk across the world, this quarter’s Infrastructure Finance Outlook provides global insights from S&P Global analysts on topics including: Brexit’s role in shaping the future of air travel between the U.K. and E.U; whether India can close its infrastructure gap; the path for multilateral lenders looking to increase their engagement with the private sector; as well as the growing importance of ESG factors for infrastructure investment.
Read the latest edition here
Moorgate compiles, edits and designs Infrastructure Finance Outlook.
The reality of Brexit is starting to bite the U.K.’s airports, S&P Global Ratings believes .
The rating agency reports that, without access to the European Common Aviation Area after Brexit, the U.K.’s air traffic rights could become uncertain. An interruption to EU-U.K. air traffic lasting longer than three months would likely trigger negative rating actions (downgrades or revised outlooks) across S&P Global Ratings’ portfolio of rated U.K. airports.
Following Moorgate’s outreach, InfraNews, IPE Real Assets and Infrastructure Investor covered the news. Note that some articles appear behind paywalls.
How will channel tunnel border checks change when Britain leaves the EU? Speaking on BBC World News, ICC United Kingdom Secretary General Chris Southworth explains what post-Brexit changes might mean for the $150 billion – or 17 percent – of goods that head into and out of the United Kingdom’s port of Dover every year.
The numbers make for uneasy reading. If Britain leaves the single market and Customs Union with no free trade agreement in place, it could cost EU and UK companies over $77.6billion a year.
But the damage can be mitigated.
“This is a big opportunity to digitise trade,” Southworth stated, going onto explain how the implementation of efficient IT process instead of today’s heavily paper-based trade documentation stands to help businesses in the UK and abroad save time and costs when executing cross-border business.
A core part of its advocacy, ICC United Kingdom plays a large role promoting digital trade in the UK and at the WTO – promoting digitalisation as key to increasing the number of women and SMEs in the global economy.
The full interview can be seen on BBC iPlayer here.
ICC United Kingdom, along with several other business, union and non-governmental organisations have put forth a new Trade Governance Model for trade negotiations post-Brexit. The framework is based on four principles: Consensus Building, Transparency, Democratic Oversight and Net Benefit for All.
Speaking with GTR, Chris Southworth, ICC United Kingdom’s secretary general, acknowledges that not enough people have benefitted from trade agreements in the past and that current trade models should be more inclusive of local business, NGOs and civil society needs. This new Trade Governance Model represents a solution to these issues.
Read the full article here
Following the launch of ICC United Kingdom’s trade policy recommendations titled ‘A Trade Governance Model That Works for Everyone‘, the organisation’s Secretary General Chris Southworth tells The Times’ Callum Jones why a new governance model for trade policy is critical post-Brexit.
Southworth stated: “Public trust in trade policy has collapsed. This governance model provides a real opportunity for the UK to set new world standards in trade policy, re-build trust and put in place a modern governance framework that works for everyone.”
The framework — drawn up and endorsed by organisations including the International Chamber of Commerce (ICC) United Kingdom, Institute of Directors, Unite the union and the consumer group Which? — advises that parliamentary votes should take place both before trade talks begin and after they conclude.
The full article can be read at The Times.
Following the US decision to implement tariffs of up to 25% on 1,333 Chinese products, China announced its decision to also impose tariffs of up to 25% on 128 US imports (including pork and wine), worth approximately US$3 billion in value.
For BBC Radio 4, Chris Southworth, International Chamber of Commerce (ICC) Secretary General argues that such protectionist policies are not only adding to globally uncertainty, but also stalling discussions at the WTO – with particular implications for the UK who must forge fast trade deals following Brexit.
In addition, Southworth argues that the largest effects of the tariffs will not be felt by big business but rather by consumers, and smaller companies – in the US, China and beyond. For Southworth “no one benefits from a trade war”.
The full interview can be found on BBC Radio 4 here.
Following Prime Minister Theresa May’s latest statement on trade with the EU post-Brexit, BBC Radio 4’s Charlotte Smith and Chris Southworth, Secretary General of the International Chamber of Commerce United Kingdom, discuss what May’s “hard facts” mean for the UK’s food and drink sector.
Southworth explains that, in light of May’s speech, a five-10 year transition period will be necessary to successfully establish a new trading system and ensure as frictionless a trading border as possible.
The full interview can be heard at BBC Radio 4 here.
UK food and drink exports soared to £22 billion pounds last year, while export growth to non-EU countries surpassed those to the EU.
Speaking to BBC Radio 4 Farming today, ICC United Kingdom Secretary General Chris Southworth talks trade outside the EU, and how trade policy following Brexit should look for UK food and drink exporters to successfully compete with other countries.
The full broadcast can be heard here (from 9:30).