A summary of the most important trade news stories from the past week. This summary is emailed to our subscribers every Monday morning, along with the latest comment and analysis from The Channel Group. If you would like to receive this direct to your inbox, you can sign up at the bottom of this article or click here.
G20 no longer endorses free trade
The G20 no longer endorses free trade, after the US refused to support the long-standing policy. Governed by consensus, the G20’s policy of support for free trade was torpedoed by the US veto.
The move is a blow for the hosts Germany and all other free raede-supporting nations.
US Treasury Secretary, Steven Mnuchin, said; “This is my first G20, so what was in the past communiqué is not necessarily relevant from my standpoint. I understand what the president’s desire is and his policies, and I negotiated them from here,” Mnuchin said. “I couldn’t be happier with the outcome.”
Whilst some ministers reacted with frustration, German finance minister Wolfgang Schaeuble was more optimistic, saying; “It was totally undisputed that we are against protectionism. But it is not very clear what (protectionism) means to each (minister).”
It goes without saying that The Channel Group is disappointed by this development. Free trade has a handsome legacy, as a driver of both economic and social progress.
Davis admits he doesn’t know the impact of no EU trade deal
With the European Union (Notification of Withdrawal) Bill waiting for Royal Assent, David Davis faced scrutiny from the Brexit committee on Wednesday. He revealed that the UK had not made an assessment of the impact of leaving the EU without securing a trade deal. Theresa May has previously said that “no deal is better than a bad deal” and Boris Johnson has said that such a scenario would be “perfectly OK”.
Mr Davis said; “It’s not as frightening as some people think but not as simple as some people think” but confirmed that UK businesses would face tariff and non-tariff barriers. In particular, car manufacturers would be hit with a 10% tariff, farmers could see tariffs of 40%, financial services firms would loose their passporting rights.
If you would like to receive our weekly trade news summary direct to your inbox, along with the latest comment and reports, click here or sign up below: