Skip to main content

In Brief

EU draws up anti coercion trade tool

 

EU
The EU has agreed to a new trade defence tool to retaliate against countries that use punitive measures, such as China's blocking Lithuanian imports over its relationship with Taiwan. The agreement among the European Parliament, Member States and European Commission was reached on Monday and is still subject to approval in the coming weeks. This instrument aims to deter third countries from targeting the EU and its Member States with economic coercion, and it will consider the impact on businesses. It can include increased customs duties, withdrawal of import or export licenses and restrictions in services and public procurement. The Commission is obliged to investigate any case of coercion, and if a qualified majority of Member States agree, the Commission can draw up a list of potential countermeasures. The EU has also proposed a ban on products made with forced labour. These measures demonstrate the strength of the Commission in defending EU Member States and interests.

US and Japan signed agreement for car batteries minerals.

Electric car
Yesterday, the US and Japan announced a trade deal covering critical minerals such as lithium, cobalt, manganese, nickel, and graphite used in electric car batteries. This agreement includes provisions to share information on potential labour violations in the supply chain for these minerals and to collaborate in building their respective capacities. The deal is relevant to Washington's Inflation Reduction Act, which provides tax credits for companies sourcing parts from countries with free trade agreements, potentially excluding the EU and Japan. This month, the US started talks with the EU on trade in critical minerals, hoping to allow European products to qualify for tax incentives.

The US has stressed the importance of strengthening the supply chain with like-minded partners to reduce dependency on other countries for these minerals.

Prosecutors investigate Banks in France

French pro­sec­utors yesterday raided the Paris offices of BNP Pari­bas, Société Générale, and several other large banks as part of an investigation into alleged tax evasion related to dividend pay­ments. Accompanying the raid were 150 agents to search emails and doc­u­ments at the banks, which included HSBC, Natixis and BNP-owned broker­age Exane. This marks the biggest raid orchestrated by French fin­an­cial pro­sec­utors and is linked to five invest­ig­a­tions launched this year over money laun­der­ing and fiscal fraud charges. Furthermore, French tax author­it­ies have sought to levy fines of more than €1bn on the banks for the so-called "cum-cum" trades, which are designed to seek tax advant­ages.

German pro­sec­utors have also been involved in the investigation, with searches having been conducted in Britain at the behest of German invest­ig­at­ors. The raids were designed to collect evidence to determine if there had been any attempts to help clients avoid taxes.

www.sba.tax

Labels:

Comments

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

India- UK trade deal.

  According to India's top trade official, talks with the UK regarding a trade agreement are progressing well, despite obstacles related to temporary work visas and the opening up industries like automotive and spirits. The Commerce and Industry Minister, Piyush Goyal, explained that India is seeking transition periods or greater market access in specific sectors due to its economy, which is slightly larger than the UK's and expected to outgrow it in the coming decades. If a trade deal is reached, it would be one of the most significant agreements for Britain since leaving the EU, and it would also be necessary for India, which surpassed the UK as the fifth-largest economy last year. Goyal stated that India aims to increase its economy from $3.5tn to $35tn by 2047, the country's centenary of independence. According to officials and diplomats in India, talks about a proposed trade deal may be finished by early September, just in time for the G20 summit in New Delhi. Nigel Hu...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more