With the new President at odds with the military council and parliament being suspended by the country’s Supreme Constitutional Court, outside observers could be forgiven for thinking that trade is low on Egypt’s list of current concerns.
However, the country clearly cannot afford its political upheavals to stand in the way of moves to facilitate and secure its international trade, and plans have been announced for Egypt to join the TIR Convention “in the very near future”.
The International Road Transport Union (IRU) has reported that major public and private stakeholders have met recently to discuss a concrete action plan aimed at speeding up the efforts needed to join the Convention.
The meeting was attended by the country’s Customs Commissioner as well as representatives from the import and export control authority and from the transport industry.
They unanimously agreed on the vital need for Egypt to join, as soon as possible, the major UN trade and road transport facilitation and security instruments, including the Harmonisation and TIR Conventions, to further develop the country’s international trade and to enable it to become a logistic hub for the region.
Adhesion to the TIR Convention would be particularly timely for Egypt, the IRU has pointed out, given the recent launch of regular ferry lines allowing RO-RO (roll-on, roll-off) transports from Turkey to Egyptian ports.
TIR stands for Transports Internationaux Routiers (International Road Transport) and is an international harmonised system of Customs control intended to facilitate trade and transport whilst effectively protecting the revenue of each country through which goods are carried.
The British Chambers of Commerce (BCC) have published its latest report on regulation, which was featured exclusively in the Telegraph. For the second time, the BCC undertook an extensive study into the progress made by the government to improve the architecture through which new regulatory proposals pass, and thus reduce the burdens placed on companies.
The BCC analysed the transparency and efficiency of the regulatory process and whether the burden of red tape has successfully been decreased. Regulation affects businesses in all aspects of their day-to-day activities and BCC will be working hard in the coming months to ensure that businesses are not burdened with unnecessary or poorly designed legislation.
The weather stayed dry and warm for the Chamber’s Summer Social held at Costessey Park Golf Club on July 12, allowing attendees to have a delicious BBQ, enjoy a glass of Pimms on the patio and make full use of the excellent golfing facilities.
There were a number of different networking activities on offer throughout the evening, including a tutored wine tasting, hosted by Brian Sullivan of HarperWells who brought three ‘cheeky’ wines to taste from his exquisite collection. There was also a putting competition, won by Active Norfolk’s George Webster and a ‘Beat the Pro’ competition, where delegates competed against Costessey’s Junior Pro as to who could get nearest to the green on the first hole, won by Adam Beeney of Sprowston Manor.
Three 60 Second Spotlight speakers also managed to profile their company against the clock, with attendees hearing about The Forum Trust, I Want More Sales and Winsor Bishop.
The relaxed and informal atmosphere of the Summer Social provided the perfect environment for business networking and making great connections, but don’t just take our word for it:
@NorfolkAmy “Great event tonight, the combo of golf, wine and networking worked surprisingly well!”
Lambda_Alex “Had a great evening at the #ChamberSummerSocial. Definitely enjoyed the @HarperWells wine-tasting”
Photos of the highlights from the event can be found on the Norfolk Chamber’s Facebook & Google Plus pages.
Our next evening social networking event isLook the Business:Fashion, Beauty & Business the John Lewis Way – Get you and your business ‘bang on trend’ by hearing the story of John Lewis’ success from their Operations Manager, Lesley George. Plus a skincare and make-up demo and fashion workshop showcasing business dress trends for men and women, plus the opportunity to network and do business in a relaxed atmosphere. For full details click here.
The EU has signed an ambitious and comprehensive Trade Agreement with Colombia and Peru. Once fully implemented, the agreement will open up market opportunities for a number of key export industries in the EU which will be able to benefit from the removal of tariffs.
The Commission estimates that the trade deal will relieve EU exporters of €270 million (£217 million) in duties each year. It will eliminate tariffs in all industrial and fisheries products, increase market access for agricultural products and improve access to public procurement, services and investment markets.
The agreement will also further reduce technical barriers to trade and establish common disciplines including, for example, on intellectual property rights, transparency and competition. In addition, it will allow for the protection of over 100 EU geographical indications for foodstuffs on the Colombian and Peruvian markets.
A number of sectors are due to benefit. For example, it is estimated that the automotive and car parts industry will reap over €33 million (£26.5 million approximately) in tariff reductions, whilst the chemicals and textiles industries should benefit from reductions in the region of €16 million (£12.8 million) and €60 million (£48.2 million) respectively. Other noticeable tariff reductions will be in pharmaceutical and telecommunications products.
By opening up the EU market to exporters from Peru and Colombia, the agreement is expected to have a direct impact on growth and jobs in these countries and contribute to the sustained move up in the value chain of their economies.
The proposed deal also includes an agreement on the protection of human rights and the rule of law as well as commitments to implement effectively international conventions on labour rights and environmental protection. Civil society organisations will be systematically involved in the monitoring of the implementation of these commitments, which will also be subject to an arbitration system.
All EU Member States are parties to the agreement and have already signed it. This signature allows for the formal ratification procedures to kick off in the EU as well as in Colombia and Peru.
The European Parliament (EP) will be the first to act by voting on consent this year while Member States’ Parliaments are expected to adopt the text at a later stage. In the meantime, the Trade Agreement will be provisionally applied between the parties – provided EP consent is granted and ratification procedures are also concluded in Colombia and Peru.
More about EU-Andean trade relations including the full text of the Peru and Colombia Trade Agreement can be found here.
There has been a further significant development in the long-running saga of the interplay between an individual’s right to take annual leave and their need to take sickness absence.
It is well established, as a result of a number of decisions by the European Court of Justice (ECJ), that an individual’s right to take annual leave enshrined in the European Working Time Directive (2003/88/EC) is distinct from their need to take sickness absence. It is now clear that an individual’s holiday entitlement continues to accrue during periods of sickness absence, and that an employee who is absent due to sickness and is unable to take holiday has the right to take it at a later date (or to be paid in lieu of the holiday if their employment is terminated).
Does it matter when the period of sickness starts?
Until recently, it was not clear whether or not an employee is entitled to take annual leave at a later date regardless of when they fall sick, whether they fall sick before the period of leave is due to start or fall sick during a period of leave. The ECJ has now given its judgment in the case of Asociación Nacional de Grandes Empresas de Distribución (ANGED) v Federación de Asociaciones Sindicales (FASGA) and others (Case C-78/11 ECJ).
The ECJ has made it clear that the point at which a worker’s sickness arises is irrelevant; a worker is entitled to take paid annual leave which coincides with sickness at a later time, irrespective of the point at which the incapacity for work arose. If necessary, and in accordance with the ECJ’s previous decisions, a new period of annual leave may be scheduled outside the normal reference period for holiday (i.e. beyond the holiday year).
Carrying forward holiday
The ECJ has also recently held that the period in which unused holiday can be carried forward must be “substantially longer” than the reference period. In KHS AG v Schulte (Case C-214/10 ECJ) it held that a carry-over period of 15 months was sufficient; in Neidel v Stadt Frankfurt am Main (Case C-337/10), a period of nine months was held not to be sufficient.
In the UK, we currently have two conflicting decisions from the Employment Appeal Tribunal (EAT) on the issue of whether an individual can carry forward their unused holiday entitlement to a subsequent holiday year, even if they have not requested to take a period of holiday during their sickness absence. One of these decisions, Larner v NHS Leeds, in which the EAT held that it was not necessary for the employee to give notice of her request to take annual leave, has been appealed to the Court of Appeal and judgment is expected shortly.
Amendments to the Working Time Regulations
In 2011, as part of its Modern Workplaces Consultation, the Government consulted on its intention to amend the Working Time Regulations 1998 to take into account developments as a result of ECJ decisions. We can also expect guidance for employers on dealing with the issue of sickness absence coinciding with annual leave. It had been suggested that the amended Regulations would take effect in 2012, but as the draft Regulations have yet to be published, it now appears unlikely (although not impossible) that we will have the amendments in place this year.
In the meantime, employers should be aware that employees who fall sick before or during a scheduled period of annual leave should be permitted to take the holiday at a later date, even if this means carrying it forward to a new holiday year. Employers should ensure, however, that employees follow the usual procedure for reporting sickness absence, even if they are on holiday. Employees should be required to self-certificate or provide a doctor’s certificate to cover their period of illness.
Employment law experts from Steeles Law will be examining this topic in more detail, together with a number of other ‘tricky issues’, in the forthcoming HR Forum which is taking place at Dunstan Hall on 12 September 2012, from 2pm
The British Chamber of Commerce’s energy survey goes live today.
The survey will help us better understand the impact of volatile energy costs, the measures businesses have taken to reduce their energy usage, and the relationship between businesses and their energy suppliers. It will also test the perception of recent government regulations. We can use this knowledge to put continued pressure on the government to support businesses in this area.
The survey only takes 10 minutes to complete. To take part in the survey click here.
Commenting on reports that the government’s consultation on aviation capacity will be delayed, Caroline Williams, CEO Norfolk Chamber of Commerce, said:
“The government has spent years working on a strategy for UK aviation, so reports that there will be yet more delays beggar belief. Businesses are tired of indecision and equivocation on aviation. Ministers can’t tell businesses to look for new opportunities in emerging markets like Brazil and China, and then fail to provide the basic infrastructure needed to get there.
The consequences of inaction are stark. If the government does not act swiftly to increase capacity in the South East, strengthen our regional airports, and support the development of more connections to emerging markets, the UK will lose both investment and jobs. Our research shows that business leaders in high growth or emerging economies see direct air links as vital to maintaining the UK’s prospects in global markets. Nine out of ten (92%) of these business leaders say direct flights influence their inward investment decisions; while eight in ten (80%) say they would trade more with the UK if flight connections were improved to their home markets.
Trade with fast-growing markets requires Britain to have a strong, resilient hub airport. New runways, at Heathrow and elsewhere, will be required to safeguard the UK’s status as a global aviation hub in both the short and long term.
Continued delays only put the UK further at a competitive disadvantage. Aviation strategy must be at the heart of a credible plan for growth, not a political football.”
Manufacturing output for May 2012 up 1.2% on the month, down 1.7% on the year
Commenting on the manufacturing output figures for May, published today by the ONS, Tracey Howard, International Trade Director at the Norfolk Chambers of Commerce, said:
“While most expected the latest manufacturing output figures to record stagnation or a decline, they show resilience from manufacturers despite a difficult economic climate and a crisis in the eurozone. Taken together with the latest trade statistics, they show that pessimism about the UK’s economic prospects is unwarranted.
“Longer-term trends in manufacturing are still disappointing, and the global economy shows signs of slowing. Manufacturers are adjusting to a new reality with weaker growth prospects while the government continues with measures to reduce the deficit. But British businesses have considerable potential to make progress, even in tough circumstances. It is down to the government to help them realise this.
“The economy can move from a vicious to a virtuous circle. The government must create confidence and growth through aggressive deregulation, infrastructure spending, and the creation of a state-backed business to increase lending to new and growing businesses.”
UK trade deficit in goods and services was £2.7bn in May, compared with a deficit of £4.1bn in April
Commenting on the trade figures for May 2012, Tracey Howard, International Trade Director at the Norfolk Chambers of Commerce, said:
“The trade deficit shrank in May, with underlying export volumes increasing by 6.6% on the month, and imports rising by only 1%. We shouldn’t place too much emphasis on one month’s figures, but the strong improvement in May comes after a disappointing figure in April. Unusually, UK exports to non-EU countries were higher than exports to the EU. This shows that exporters are adjusting to global reality, as growth in the eurozone continues to stagnate, and the main opportunities for our exporters will remain outside Europe.
“So far, the rebalancing of the UK economy towards exports has been too slow. But if this positive trend continues, the unjustified pessimism surrounding the economy will be dispelled. British exporters have huge untapped potential, but they need the government to do more to help them compete globally. Bold action in areas such as trade finance and insurance, the creation of a business bank and commitments to improve infrastructure would help to drive growth in UK exports.”
Commenting on the speech made by Ed Miliband on banking, Caroline Williams CEO Norfolk Chamber, said:
“Too often businesses face Hobson’s Choice in getting the finance they need. There are limited choices for businesses looking for credit vital to grow, invest, and take on staff. What’s more, switching between banks can be an administrative nightmare for many companies.
“We need a more competitive banking environment that enables businesses and consumers to access the best products and services. The commercial banking industry has to change, and both government and regulators must create an environment that ensures firms get a fair deal from lenders.
“Creating new banks is one way of driving up competition and choice, but on its own, it will not solve the funding gap faced by firms. The creation of a dedicated business bank would ensure that new and growing companies can access the finance they need to develop new products and services, export to new markets, and take on more staff.”
Smaller Internet-focused businesses looking for funding could benefit from a new initiative backed by the European Investment Fund and the UK Government.
Targeting small and medium-sized enterprises (SMEs) with high growth potential, the “Notion Capital 2” fund stands at £62.9 million (€78.2 million), making it the largest of 11 Enterprise Capital Funds so far established by the UK Government. Welcoming the new initiative, the UK’s Business and Enterprise Minister, Mark Prisk, said: “It is absolutely vital that ambitious small firms can access the finance they need to expand and grow, and this new Enterprise Capital Fund will provide at least £40 million of funding to viable UK high-tech businesses.”
Notion Capital The Fund is managed by Notion Capital – a venture capital company with a track record of backing UK and European companies providing software-as-a-service (SaaS) and cloud computing services. According to Notion Capital Partner Jos White, the new Notion Capital 2 fund aims to back companies that Notion believes “can make it big”, while co-founder Stephen Chandler said that the company’s strategy is to only invest in cloud computing and SaaS, with the aim of identifying and supporting European companies that can become global leaders. The Notion Capital 2 fund is also expected to target investment at other types of Internet-based service companies and at businesses which use the Internet to provide their services.
The involvement of the UK Government and the European Investment Fund (EIF) is said to reflect their conviction that the strategy adopted by Notion “can help Europe take its fair share of the Cloud Computing economy”.
European Investment Fund The aim of the EIF is to support SMEs in Europe by helping them access finance. To that end, the EIF designs and develops venture capital and guarantees instruments specifically aimed at SMEs, with an emphasis on those involved in high-tech developments and in their early stages as companies.
The EIF has investments in more than 300 funds, making it the biggest player in European venture capital. At the end of 2011, it had nearly 160 operations, with guarantees amounting to some €14.7 billion (£11.8 billion). The €20 million (£16 million) committed by the EIF to Notion Capital 2 is provided under the EU’s Competitiveness and Innovation Framework Programme, which seeks to improve access to finance for the start-up and growth of SMEs and to promote investment in innovation.
Enterprise Capital Funds Enterprise Capital Funds (ECFs) are commercial funds investing in small, high-growth businesses seeking up to £2 million of equity finance. They are intended to “address a market weakness in the provision of equity finance to SMEs by using government funding alongside private sector investment to establish funds that operate within the ‘equity gap'”. That gap is due to a scarcity of equity capital in the £0.5-£2 million (€0.62-€2.5 million) bracket – the sort of amounts which some businesses struggle to raise.
The ECF initiative is managed by the fund management company Capital for Enterprise, which is owned by the Department for Business, Innovation and Skills. In a ground-breaking move, the EIF has collaborated with Capital for Enterprise to structure Notion Capital 2 as an ECF. According to the Chief Executive Officer of Capital for Enterprise, Rory Earley, this latest initiative demonstrates the strength of the ECF programme – which has had a total of £200 million committed to it by the Government until 2014/15.
Further information Press releases and other materials can be found via the websites of:
Despite a further rise in exporting activity among both service sector and manufacturing firms, economic growth remains too weak, according to the latest Quarterly Economic Survey from the British Chambers of Commerce (BCC).
The survey for the second quarter (Q2) of 2012 shows that businesses are growing, but that balances across most measures have yet to return to pre-recession levels.
Comprising responses from 7805 businesses, the Q2 survey shows that there has been a surprisingly good improvement in exporting activity, suggesting that businesses are looking to overseas trade as a source of growth.
John Longworth, BCC’s Director General, urged the Government to take a bold and imaginative approach to boosting growth. He recommended measures such as the creation of a state-backed business bank and investment in infrastructure as critical to get the economy growing.
In detail, balances measuring exporting activity for the last three months among manufacturers rose seven points to +31%, and among service sector firms rose eight points to +24%.
The balance of both manufacturing and service sector firms reporting increases in forward-looking export orders increased.
Among manufacturers, the balance was up four points to +24%, and in the service sector up seven points to +19%, a level last seen in Q1 2007.
“While domestic growth continues to bump along the bottom, the silver lining is an increase in firms looking for export opportunities and, in many cases, with countries outside Europe,” Mr Longworth said. “Economic growth should be the Government’s main priority. As the eurozone crisis rumbles on, businesses are feeling the effects, and so growth is still weak.”