News
More than three-quarters of business want UK/EU agreement
Hong KongASEAN pact to take effect
With the final round of Brexit negotiations underway, more than three-quarters of businesses (77%) say they want a deal to be agreed. Only 4% say they prefer a no deal scenario. The impact of the pandemic has lessened businesses’ ability to prepare for Brexit, with nearly half (47%) saying that the impact of dealing with Covid-19 has negatively affected preparations. The findings come as the CBI’s latest Growth Indicator reports that private sector activity fell in the quarter to September, but at a slower pace than last month (-23% from -39%), marking the third consecutive month in which the rate of decline has eased. Dame Carolyn Fairbairn, CBI DirectorGeneral, said: “Now must be the time for political leadership and the spirit of compromise to shine through on both sides. A deal can and must be made. “Businesses face a hat-trick of unprecedented challenges: rebuilding from the first wave of Covid-19, dealing with the resurgence of the virus and preparing for significant changes to the UK’s trading relationship with the EU. More than three-quarters of businesses want to see a deal that will support people’s jobs and livelihoods. This matters for firms and communities across Europe. “For the whole continent, the pandemic has diminished firms’ ability to prepare for an abrupt interruption of restrictions on trade and movement between the UK AIAWORLDWIDE.COM | ISSUE 113
and the EU. A good deal will provide the strongest possible foundation as countries build back from the pandemic. It would keep UK firms competitive by minimising red tape and extra costs, freeing much needed time and resource to overcome the difficult times ahead. “Governments across Europe have shown a level of ambition to fight the pandemic many wouldn’t have believed – it’s time to show that same creativity and flexibility on securing a Brexit deal.” The composite measure, based on 648 responses (to surveys conducted between 26 August and 15 September 2020), saw activity in the distribution sector stabilise in the quarter to September (-1% from -26%), after five rolling quarters of decline. The pace of decline also slowed again in manufacturing (-20% from -46%), consumer services (-39% from -64%) and business and professional services (-28% from -32%). Looking ahead, the fall in private sector activity is expected to ease again over the next three months (-11%). While distribution firms expect activity to fall (-23%), consumer services (-22%) and manufacturers (-6%) expect a further easing, while business & professional services firms (-2%) expect business volumes to stabilise. A supplementary question found that private sector activity on the whole remains 16% below what would be expected under ‘normal conditions’ (i.e. in the absence of Covid-19).
© Getty images/istockphoto
HONG KONG
© Getty images/istockphoto
BREXIT
The commitments relating to Hong Kong and Brunei Darussalam, an Association of Southeast Asian Nations (ASEAN) member state, under the trade and investment agreements between Hong Kong and ASEAN will enter into force on 20 October 2020. Tariff reduction commitments under the Free Trade Agreement covers different kinds of Hong Kong commodities, including jewellery, apparel and clothing accessories, watches and clocks, and toys. Hong Kong service providers will enjoy better business opportunities and legal certainty in market access for services sectors in Brunei Darussalam, such as business, telecommunications, construction and related engineering, education, tourism and travel related services, and transport services that have traditional strengths or potential for development. Upon the Investment Agreement’s implementation, Brunei Darussalam will provide Hong Kong enterprises investing in its area with fair and equitable treatment of their investments, physical protection and security of their investments, and the assurance of the free transfer of their investments and returns. So far, the commitments relating to the eight ASEAN member states of Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam have taken effect.
3
