01/04/2023
UK JOINS ASIA-PACIFIC TRADE BLOC CPTPP, WHICH INCLUDES JAPAN AND AUSTRALIA
After almost two years of negotiations, the UK has joined the 11-member Asia-Pacific trading bloc, which includes Japan and Australia.
The deal, which is part of a post-Brexit push for global trade deals, secures access for UK exporters to 500 million people in the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The agreement, reached after 21 months of negotiations, will allow exporters to “seize opportunities for new jobs, growth and innovation”, according to the government.
05/04/2023
WTO FORECASTS WORLD TRADE GROWTH OF ONLY 1.7% BY 2023 AND WARNS OF FINANCIAL RISKS
Global trade will be affected by financial and geopolitical tensions. The World Trade Organisation expects trade to rise more than expected this year, but less than in 2022, and warns that many risks could arise.
Although the year closed positively, the WTO notes a deterioration caused by the slowdown in demand for imports due to inflation, which is being felt in the rise in energy prices, the high prices of wheat and cereals, as well as the rise in interest rates that central banks are suffering.
Next week, the International Monetary Fund will release a paper warning that “concerns about global economic and financial fragmentation” have intensified due to ongoing geopolitical tensions.
24/04/2023
BRICS RECEIVES APPLICATIONS FROM 19 COUNTRIES TO JOIN THE GROUP AHEAD OF SUMMIT
A total of 19 countries have expressed interest in joining the BRICS group of nations, which is set to hold another annual summit, this time in South Africa. The emerging market bloc of Brazil, Russia, India, China and South Africa will meet in Cape Town on June 2-3 to discuss expansion, Anil Sooklal, South Africa’s ambassador to the group, said in an interview in the city on Monday.
China initiated talks on enlargement when it chaired the group last year, at a time when the world’s second-largest economy is trying to gain diplomatic clout to counter the dominance of developed countries at the United Nations. The proposed enlargement raised concerns among other members that their influence could be diluted, especially if Beijing’s close allies are admitted.
26/04/2023
INDIA AND RUSSIA HOLD ‘ADVANCED TALKS’ ON FREE TRADE AGREEMENT
India and Russia have begun “advanced negotiations” on a free trade deal aimed at closer economic ties as most Western governments push to isolate Moscow over the war in Ukraine.
Russian and Indian trade ministers said on Monday the two countries were in talks to reach a free trade agreement, a development that could aggravate tensions in Washington, London and EU capitals.
On a visit to Delhi, Russian Deputy Prime Minister Denis Manturov, who is also trade minister, said: “Together with the Eurasian Economic Commission, we hope to intensify negotiations on a free trade agreement with India”.
26/04/2023
GERMANY WILL GROW BY 0.4% THIS YEAR, TWO TENTHS OF A PERCENTAGE POINT MORE THAN EXPECTED, ACCORDING TO THE GERMAN FINANCE MINISTER
Germany’s gross domestic product (GDP) will grow by 0.4% this year, an upward revision of two tenths of a percentage point in the expansion expectations of Europe’s largest economy, the Minister of Economics and Climate Change, Robert Habeck, announced on Wednesday.
“After the coronavirus crisis, the German economy is proving to be adaptable and resilient, even during the energy crisis,” Habeck said.
The ministry noted that current economic indicators such as industrial production, new orders and business confidence point to an upturn in activity as the year progresses.
26/04/2023
OIL PRICES FIND SOME SUPPORT AFTER SHARP LOSSES ON FEARS OF A US RECESSION
Oil prices rose slightly on Thursday 26 April, finding some support after sharp losses in the previous two sessions, driven by fears of a US recession and a surge in Russian crude exports that softened the impact of OPEC’s production cuts.
Brent crude was trading at $77.98 a barrel, up 29 cents, or 0.4 per cent. West Texas Intermediate crude was up 20 cents, or 0.3 per cent, at $74.50 a barrel.
27/04/2023
SPAIN AND BRAZIL RESUME THEIR ALLIANCE SEEKING TO FINALISE THE EU-MERCOSUR AGREEMENT
The head of the Spanish government, Pedro Sánchez, and the Brazilian president, Luiz Inácio Lula da Silva, declared at a press conference on Wednesday 26 April that the two countries are resuming a strategic partnership that was paralysed during the mandate of former president Jair Bolsonaro and that should serve to achieve the culmination, even this year, of the EU-Mercosur agreement.
Lula made his first visit to Spain in this new phase as head of the Brazilian state following his inauguration last January, and on Wednesday held a meeting with Sánchez at the Moncloa Palace, the seat of the Spanish government, together with several of his ministers, after which several agreements were signed on innovation, universities and labour relations, in addition to a joint declaration on the occasion of this visit.
All this led Sánchez and Lula to affirm in a media appearance that bilateral relations have been relaunched and that their strategic alliance has been renewed and is gaining strength after Bolsonaro’s hiatus.
27/04/2023
ARGENTINA REPLACES THE DOLLAR WITH THE YUAN IN BILATERAL TRADE WITH CHINA
To deal with the drain on international reserves, Argentina will replace the dollar as the currency of trade with the yuan, for products imported from China to the value of 1.07 billion dollars. The agreement will come into force this month.
The agreement allowed Argentina to have the equivalent of 5 billion dollars as freely available reserves, increasing China’s share of international reserves to 48%, another step by China to gain ground in the international financial market.
This agreement will make some conditions more flexible, such as authorisations, and, as the Minister of Economy pointed out, will improve the outlook for Argentina’s net reserves and give the Central Bank greater freedom and capacity for action in the midst of the exchange rate tension that has arisen.
27/04/2023
SINGAPORE RAISES PROPERTY TAX IN LATEST ROUND OF COOLING MEASURES
Singapore is raising taxes for property purchases amid concerns that rising prices “may be ahead of economic fundamentals”.
In a new round of cooling measures announced late on Wednesday, the government announced that both local and foreign buyers of residential properties will now have to pay higher additional stamp duties.
This is Singapore’s third round of cooling measures, following similar earlier ones.
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In Madrid, 30 April 2023
Department of International Trade and Sanctions
Lupicinio International Law Firm
