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Safeguard Measures on Steel Imports

Decisions have been made by the International Trade Secretary on the continued application of safeguard measures on imports of steel plus also on tariff rate quotas. If any of this impacts your business and your trading possibilities, please contact us using internationaltrade@cambscci.co.uk and we will ensure that your concerns are raised with the British Chamber of Commerce Trade Policy team. The Secretary of State has decided to apply the safeguard measures on the following categories of steel imports until the end of June 2024: 1 - Non-alloy and other alloy hot-rolled sheet and strip 2 - Non-alloy and other alloy cold-rolled sheet 4 - Metallic coated sheet 5 - Organic coated sheet 13 - Rebar 19 - Railway material 20 - Gas pipe 21 - Hollow section 25 - Large welded tube 26 - Other welded tube The safeguard measures are also being applied to the following categories of steel imports until the end of June 2024: 6 - Tin mill products 7 - Non-alloy and other alloy quarto plates 12 - Merchant bars and light sections 16 - Non-alloy and other alloy wire rod 17 - Angles, shapes, and sections of iron or non-alloy steel For category 12a the Secretary of State is increasing the tariff rate quota by 126,136 tonnes in order to assist importers and downstream users of steel.

How to grow a small business after year one

The latest data from the ONS shows that around 10 per cent of businesses fail after year one. Spotting the keys to growing your business after the first year is vital if you’re to escape this cycle and create lasting success. After a full year of trading, you should be able to use your sales data to identify which products have sold the best and what you’ve done to drive traffic to your website. Therefore, finding what’s most reliable and lucrative for your business should be relatively straightforward. If you’re confident you’re already wellpositioned to meet your customers’ needs, you could investigate expanding your brand into new product categories. Growth from diversifying works on two fronts: existing customers recognise your brand in the new products they find, while new customers find an established and reputable brand available to them. Refining your marketing strategy can also be an effective way to grow your small business. You can generate revenue by making your advertising more targeted and effective at demonstrating your business’s value. Find more ways to grow a small business in domestic and international markets on the WorldFirst website.

Uncertainty remains on future of standards marking system

The BCC has welcomed the announcement of four new easements on conformity assessment markings. Responding to the planned policy changes, Head of Trade Policy, William Bain, said: “It’s good news that the UK Government has listened to business in providing these new easements to support cashflow and costs in these difficult economic times. There will be relief on the pragmatic solution reached on spare parts and repairs. “Usage of EU certificates will cut duplicate testing costs, which firms could have faced early next year to place goods on the market in Great Britain. Those companies, which have the resources to do so, will also have the flexibility of importing CE-marked goods before the end of the year and placing these on the market in Great Britain without subsequent relabelling. “After the end of 2022 however, firms will face significant new cost pressures from the introduction of the new markings system. “Uncertainties also still exist in terms of what will happen to markings in Northern Ireland. The current arrangements also suggest that CE-only marked goods, brought over from Northern Ireland, could continue to be placed on the market in Great Britain, whereas those from the rest of the world could not, beyond the end of 2025. “There is some way to go before businesses will have complete assurance about the operation of the new markings systems.” This written ministerial statement on the markings of industrial, construction, electrical and electronics will be subject to secondary legislation and updated guidance by the UK Government. The four measures are to: 1. Allow certificates issued by EU conformity assessment bodies before the end of 2022 to be used as the basis for subsequent UKCA marking certification 2. Permit existing imported goods (before January 2023) to be treated as being already placed on the GB market eliminating the need for relabelling of products 3. Clarify that imported spare parts which repair or replace goods already on the GB market meet the same requirements as the existing goods 4. Facilitate goods being able to have UKCA marking, and importer details added via a sticky label, or accompanying paperwork, until 31 December 2025.

WTO Agreements must now deliver progress

The British Chambers of Commerce (BCC) is calling for agreements reached at the World Trade Organisation Ministerial Conference to be translated into real change for businesses. Following the conclusion of the conference last month, William Bain, Head of Trade Policy at the BCC, said: “The most important decision for many firms will be the eleventhhour renewal, for 18 months at least, of the moratorium on customs duties on electronic transmission of products. This is a key boost for exporters. “We also welcome the renewed commitment for the WTO secretariat to work with business so we can make these agreements work to strengthen trade and economic growth globally. “Key issues like food security and vaccines saw sufficient progress to avert forthcoming crises, but on these, together with subsidies, digital trade, and WTO reform, further steps are badly needed. “We hope for many opportunities to engage in Geneva on key business priorities for action and reform ahead of the next Ministerial Conference at the end of 2023.” Over 160 countries attended the event which agreed tangible outcomes to aid the global economy and make progress in a number of areas. These included: • Renewal of the moratorium on customs duties on electronic transmission of products until the next

Ministerial Conference if held at the end of 2023 or until the end of March 2024 if it is delayed • Exclusion of UN World Food Programme destined products from any export bans • Waivers from the Trade Related Aspects of Intellectual

Property Rights (TRIPs) agreement to secure continuity of vaccine supplies in the COVID-19 pandemic • Re-commitment towards WTO reform agenda before next Ministerial Conference and fully functioning dispute resolution system in place by 2024. • Dedicated sessions on transit issues annually until next review of the Trade Facilitation Agreement • Commitment to renewed business engagement by the

WTO Secretariat team.

Will the Bank of England raise rates to 1.75% in August?

The Bank of England monetary policy committee (MPC) are taking their usual summer hiatus, however being out of sight will not be a case of being out of mind. Before the MPC next meet in August, the European Central Bank (ECB) and the U.S Federal Reserve (Fed) are expected to have raised interest rates. The ECB have signalled an uplift to their main policy rate (currently minus 0.50%) in July and September, their first increase in over a decade. The more hawkish Fed are expected to follow June’s 0.75% hike to 1.75% with something similar at the end of July. Sticking to cautious quarter percent increments (BofE base rate stands at 1.25%) combined with a hesitant narrative, the financial markets are being left underwhelmed by the MPC. The Bank seems to have one eye on stifling already lack lustre economic growth, and the other on tying to dampen rampant inflation. Three of the nine members of the MPC did vote for a larger rise in June, by time August arrives just another two are needed to see a rise to 1.75 per cent (or higher). Pressure will mount over the summer; will the Bank of England raise rates to 1.75 per cent in August? A perceived soft and confused Bank of England is no help to Sterling performance in the currency markets. Testing 52-week lows drives up the cost of imported good, fuel at the pumps and ultimately inflation itself. A $110 barrel of oil which cost £78.50 at the start of 2022, recently cost as much as £91.50. Estimates indicate up to 15p per litre is being added to the price at the pump due to Sterling’s 13 per cent fall against the US dollar. The ONS reported inflation at 9.1 per cent at the end of June, the BofE are forecasting 11 per cent in Q3. Research from Swiss Re, the insurance wholesaler, suggested interest rates should be 10% in the UK – 1992 anyone! Circumstances are somewhat different with inflation a global challenge, not just an issue for the then ailing UK as it crashed out of the European Exchange Rate Mechanism. Whilst the US & Eurozone are all facing soaring inflation and economic slowdowns, with no major economic data or policy intervention expected over the summer, Sterling is destined to test lower levels against the Dollar and Euro. For more information on how Ascendant can benchmark your current supplier and to hear about how we are reducing the cost of foreign exchange for local businesses, contact karen.benson@ascendant.world

52 week range for GBP (up to 1 July)

GBP v Euro – High 1.2190 - Low 1.1465 GBP v US Dollar –High 1.3983 - Low 1.1933