October Trade News

October Trade News

UK- India Trade Delegation

Following the UK India CETA agreement in July, an additional Trade delegation from Britain travelled to Mumbai as part of a trade delegation. This new trade mission has created hundreds of new jobs as further commercial agreements continue to be negotiated. 

Amongst the diplomats was a team from Liverpool, including members from University of Liverpool and Metro Mayor of the Liverpool City Region Steve Rotherham.

Liverpool City Region are working hard at boosting trade with India, using their new title of UN city of Innovation as a selling point. This comes as more trade missions from around the world are coming to Liverpool. 

Middle Eastern Conflict continues

The conflict in the Middle East has seen new challenges for commercial shippers. As violence heightens across the Persian Gulf, the Strait of Hormuz is becoming a battle zone.

On 14th October, as missiles struck across the Arabian Peninsula. 2 civilian container ships fell target to attacks. The Global Feeder Shipping vessel GFS Pride sank following a strike that caused a fire creating severe damage. A second GFS vessel also fell target with GFS Giselle also being hit. Luckily, this vessel did not sink despite damage to its hull.

Fortunately, across both vessels, no casualties were announced and all 43 seafarers were safely evacuated.  

Arctic Sea Route

South Korea and China have tested a new potential shipping route over recent months, with South Korea conducting such this month. The route involves traversing north of the Russian coast, through the Arctic Sea. This could serve as a much shorter route between the Far East and Europe, cutting off at least 10 days of travel time. 

The route has stops at Felixstowe in England as well as other major European ports. 

However, very few major shipping lines are willing to make use of this route. MSC, CMA CGM and Hapag Lloyd are amongst other shipping lines who currently refuse to use said route citing environmental concerns. 

EU- China Trade Talks

The European Union and China had their second meeting to discuss the growing €1 billion daily trade deficit with China. The goal of the mission was to create terms between the nations to avoid a trade war. 

Results of the talks include increased protectionist measures on Chinese automotive and hybrid exports.

Whether this will help with Europe’s €360 billion trade deficit remains uncertain, but serves as a starting point for change. 

US- Canada Trade War

For over a month, Canada and USA have been fiercely disputing over trade. Donald Trump in his continued tirade about his global tariffs, has placed further tariffs on Canadian goods. An additional 50% tariff has been imposed on $20 billion of Canadian goods. 

Canada however are not accepting this. They are fighting back with their own tariffs. They are also showing close alignment with EU and UK. They are currently being hit harder than US as the US has a much greater economy, however some states are falling victim to this escalation. Canada in exchange has been increasing its exports with new countries. With crude oil trade becoming more necessary due to the conflict in Middle East and Russian embargoes, Canada is receiving new trade opportunities.