Sanctions loom large again this week, as the EU introduces a 14th round of restrictions on trade with Russia in an attempt to further diminish the country’s coffers as it wages war in Ukraine.
There is also trade tension between EU manufacturing powerhouse Germany and China, as the bloc’s new tariffs on Chinese vehicles weigh on relations.
The big picture: The EU has imposed its first sanctions on Russian liquefied natural gas (LNG) exports in the latest effort to limit Moscow’s funding for its war in Ukraine. Reuters reports on the new measures to note that they ban the re-export of Russian LNG in EU waters, but also that they do not go as far as to ban its import into the bloc.
Some experts have suggested that the new restrictions will do little to limit Russia’s capacity to wage its war, as the volume of Russian gas passing through the EU for re-export to Asia is only 10%. A study by non-profit Bond Beter Leefmilieu suggested the value of Russian gas moving through EU ports is €3.4bn.
The new sanctions package will also target the ‘shadow fleet’ of oil tankers Russia uses to move its oil exports, as well as financial institutions accused of helping the country to import tech used in weaponry.
Good week/bad week: The UK’s free trade agreement (FTA) with Australia was celebrated by a visit to Cheshire by the Australian deputy high commissioner to the UK this week, according to New Civil Engineer. Elisabeth Bowes visited the site of a new energy plant development, facilitated by Australian firm Marr Contracting, which expanded its operations to the UK after the agreement was signed.
Less positive news for UK SMEs, according to the Centre for Economic Performance (CEP). The think tank published a study this week that found that 20,000 British businesses have stopped exporting goods to the EU following Brexit. It said that some of the firms affected “would have been likely to grow large over time”, and that “the pipeline of potential future UK star exporters has been diminished”.
How’s stat? 14% – the drop in the rate of exports from Germany to China reported today by Germany’s Federal Statistical Office, as the two countries face a trade spat over the EU’s imposition of increased tariffs on China’s electric vehicle (EV) exports. Germany’s economy minister Robert Habeck is in China in an attempt to cool tensions, with his country’s own auto industry particularly vulnerable to Chinese retaliation.
The week in customs: Our regular Customs Corner feature explored government guidance on avoiding errors with the Customs Declaration Service (CDS), as well as on completing a common health entry document (CHED) when importing under the Border Target Operating Model (BTOM).
There was news elsewhere on BTOM, as we reported on the continued teething problems with the system, including the news that some Dutch lorry drivers could refuse to carry out UK deliveries after complaints over issues at border control posts (BCPs).
Quote of the week: "You'll find as you look at the opportunities in Mexico, there is support in both politics and government for any aspirations that UK firms have” – Dan Carden, trade envoy to Mexico, speaking to the IOE&IT Daily Update on his role and Mexico’s market earlier this week.
What else we covered this week: In two member-exclusive features, we had a rundown of the seats to watch on trade at the upcoming UK general election. The first looked at current trade ministers including Kemi Badenoch and Greg Hands, while the second examined the seats of former trade ministers (including ex-PM Liz Truss). Look out for more election seat coverage next week.
Our regular general election update included reports that getting a new veterinary agreement from the EU might be harder than expected, as the bloc is said to expect concessions on fishing in return.
Members could also enjoy a look back at six takeaways on BTOM from this week’s Special Interest Group (SIG), with input from IOE&IT expert Anna Doherty.
True facts: On this day in 1893, the world’s first Ferris wheel debuted at the World’s Columbian Exposition in Chicago after its design by George Washington Gale Ferris Jr. After being moved several times, it was finally demolished with dynamite in 1906.
