Browse content similar to 22/11/2016. Check below for episodes and series from the same categories and more!
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After seven years of pain-staking negotiations, is this the end | :00:00. | :00:19. | |
of the road for the Pacific trade deal? | :00:20. | :00:23. | |
And Britain's Brexit Minister meets with the European Parliament's chief | :00:24. | :00:26. | |
negotiator, but will they see eye to eye? | :00:27. | :00:37. | |
Welcome to World Business Report, I'm Sally Bundock. | :00:38. | :00:44. | |
Also in the programme: We are keeping an eye on the black | :00:45. | :00:47. | |
stuff, as the price of oil teases with the $50 a barrel level. | :00:48. | :00:52. | |
The US President-elect, Donald Trump, says the country | :00:53. | :00:56. | |
will quit a trade pact known as the Trans-Pacific Partnership, | :00:57. | :00:59. | |
on his very first day in the White House. | :01:00. | :01:01. | |
Instead, he pledged to negotiate bilateral deals, which he believes | :01:02. | :01:04. | |
will bring jobs and industry back to the US. | :01:05. | :01:06. | |
The TPP covers 12 Pacific Rim countries, and was signed | :01:07. | :01:09. | |
in February, but has not yet been ratified. | :01:10. | :01:11. | |
Combined, it would have covered 40% of the world's economy. | :01:12. | :01:14. | |
But crucially, and you can see this here on the map, | :01:15. | :01:17. | |
Its aim was to deepen economic ties, and boost growth by hundreds | :01:18. | :01:29. | |
of billions of dollars, but opponents argued | :01:30. | :01:36. | |
it was negotiated in secret and favoured big corporations. | :01:37. | :01:43. | |
Deborah Elms is the executive director of the Asian Trade Centre | :01:44. | :01:46. | |
Give us your take on this. Donald Trump is delivering on his election | :01:47. | :02:02. | |
rhetoric, that he would a sickly pull this trade deal apart. | :02:03. | :02:15. | |
Basically. Well, it is possible the other 11 will continue without the | :02:16. | :02:20. | |
United dates involved. But without the United States, how attractive as | :02:21. | :02:25. | |
this trade deal for the other 11? Well, that is an interesting | :02:26. | :02:28. | |
question. I thought the other 11 wouldn't continue without the United | :02:29. | :02:33. | |
States but in a way it is actually win-win for the others, because the | :02:34. | :02:37. | |
United States doesn't have a lot of barriers in place. So for the other | :02:38. | :02:41. | |
11 it is actually better for them. They continue to have access to the | :02:42. | :02:45. | |
US market and don't have to face American competition at home, but | :02:46. | :02:48. | |
they have much lower barriers to one another. So from Asia's perspective, | :02:49. | :02:54. | |
in a way, it is better. They don't have to deal with the Americans, | :02:55. | :02:57. | |
they still have access to the US market, they have much better access | :02:58. | :03:01. | |
to one another. So from Asia's perspective in a way it is better. | :03:02. | :03:06. | |
It is very damaging for American companies, American leadership and | :03:07. | :03:10. | |
the United dates as a whole, but for Asia it is not so bad in the end. So | :03:11. | :03:15. | |
what you're saying is TPP will still go ahead without America. If that is | :03:16. | :03:19. | |
the case, how long will it take? Is that not the sort of unpicking and | :03:20. | :03:23. | |
reworking from a legal point of view, at the very basic level? Well, | :03:24. | :03:28. | |
it is going to be very interesting because the agreement was written in | :03:29. | :03:31. | |
large part with the Americans in mind and if the US isn't there then | :03:32. | :03:35. | |
some provisions may need some adjustment. But it is unclear how | :03:36. | :03:39. | |
much adjustment the rest of the 11 will want to do, will need to do. | :03:40. | :03:44. | |
They may just go ahead with the agreement as it is, and see what | :03:45. | :03:47. | |
happens, in case the United States changes its mind at some point in | :03:48. | :03:52. | |
the future. But isn't this actually a win-win for China, who were | :03:53. | :03:57. | |
excluded from the TPP, now that it doesn't seem to be perhaps seen on a | :03:58. | :04:02. | |
global level is such a strong deal without the US involved? Things may | :04:03. | :04:05. | |
swing back in the direction of China. It is definitely a victory | :04:06. | :04:11. | |
for China and for Asia as a whole. It is really, in my view, it is the | :04:12. | :04:19. | |
ceding of leadership and trade from the United States to Asia in general | :04:20. | :04:27. | |
and China in particular. We can see this as the point when China stopped | :04:28. | :04:32. | |
leading on trade globally, at least for the next four years, for sure. | :04:33. | :04:38. | |
It may not be a boxing match, but there is no doubt that those | :04:39. | :04:42. | |
involved in the upcoming Brexit negotiations are unlikely | :04:43. | :04:44. | |
You could argue both sides need to use fancy footwork to get | :04:45. | :04:48. | |
So in the next few hours the UK's Brexit Secretary, | :04:49. | :04:52. | |
David Davis, will meet with the European Parliament's chief | :04:53. | :04:58. | |
negotiator, Guy Verhofstadt, and both gentleman have already | :04:59. | :05:00. | |
Mr Verhofstadt has said, if the UK wants to remain part | :05:01. | :05:05. | |
of the single market, it will have to accept the free | :05:06. | :05:08. | |
And this is the key sticking point, with the UK Government pointing out | :05:09. | :05:13. | |
around 40 countries currently have some sort of free trade agreement | :05:14. | :05:16. | |
with the Europe Union without a deal on migration. | :05:17. | :05:18. | |
With me is Geoffrey Yu, head of UBS Wealth Management's UK | :05:19. | :05:21. | |
Nice to see you. Now, David Davis meeting with Guy Verhofstadt today, | :05:22. | :05:45. | |
but yesterday, the European Commission Brexit negotiator, he has | :05:46. | :05:52. | |
got a busy week. How will he get on? Well, I think his reception might be | :05:53. | :05:57. | |
hostile in some quarters, with establishment links around Brexit, | :05:58. | :06:02. | |
but it is an important initial step for both sides, to get a sense so | :06:03. | :06:06. | |
that they know where both sides stand. We saw from the prime | :06:07. | :06:09. | |
Minister's comments yesterday that she is keeping her cards close are | :06:10. | :06:18. | |
just right now, but it is important that they understand each other. And | :06:19. | :06:22. | |
Brexit negotiations don't officially start until the button is hit on | :06:23. | :06:26. | |
Article 50, which is expected to happen in March next year. | :06:27. | :06:30. | |
Absolutely, and I think it is important for the UK to realise as | :06:31. | :06:34. | |
well that on the continent it is something we are looking at, and | :06:35. | :06:38. | |
next year it will be dictated by economic interests, they will not be | :06:39. | :06:42. | |
the only thing driving negotiations, but bite political pressures as | :06:43. | :06:46. | |
well. They have a crowded electoral calendar on the continent, so we | :06:47. | :06:53. | |
will see where things had to. A very busy year ahead but from your point | :06:54. | :06:57. | |
of view, what will be going on in the meantime? While all this | :06:58. | :07:01. | |
uncertainty hangs over both the UK and Europe, what impact is that | :07:02. | :07:06. | |
going to have? For our clients, we are telling them if you go out | :07:07. | :07:10. | |
looking for reasons not to invest, if you look for uncertainty, you are | :07:11. | :07:14. | |
always going to find it. But experience has shown especially this | :07:15. | :07:17. | |
year, if you stayed investing during those key points, Brexit and the US | :07:18. | :07:24. | |
election, then your returns would have been very strong. That is one | :07:25. | :07:28. | |
message we want to send the clients next year as well. Stay invested, | :07:29. | :07:34. | |
stay diversify. In terms of the negotiations itself, how do you | :07:35. | :07:46. | |
think they will play out? -- state stay diversified. It is interesting, | :07:47. | :07:51. | |
if you saw the reaction in Stirling, when we had the hints of a | :07:52. | :07:55. | |
transitional agreement, ministers will have taken note of the fact | :07:56. | :07:58. | |
that markets will welcome something along those lines. This is an | :07:59. | :08:02. | |
initial step negotiations are heading towards right now. Don't go | :08:03. | :08:08. | |
for an extreme shot immediately. Find positions agreeable to | :08:09. | :08:11. | |
households and businesses in the UK. Certainty is demanded. We will keep | :08:12. | :08:17. | |
you up-to-date with how Mr Davies gets on in Strasbourg and elsewhere. | :08:18. | :08:22. | |
In other news: South Korea's troubled shipping firm Hanjin | :08:23. | :08:24. | |
will sell part of its container ship business to Korea Line, | :08:25. | :08:27. | |
Korea Line will take over Hanjin's operations in seven countries, | :08:28. | :08:31. | |
In those markets, the new owner will manage the shipping routes | :08:32. | :08:36. | |
as well as assets and manpower related to Hanjin's logistics | :08:37. | :08:39. | |
Britain's Finance Minister, Philip Hammond, is expected | :08:40. | :08:44. | |
Brazil's government has cut its economic growth forecast | :08:45. | :08:46. | |
It also says the economy will contract this year by 3.5%. | :08:47. | :08:51. | |
The news echoes recent market pessimism, as the country struggles | :08:52. | :08:55. | |
to exit its worst recession in decades. | :08:56. | :09:02. | |
Britain's Finance Minister, Philip Hammond, is expected | :09:03. | :09:04. | |
to announce a $500 million investment into fibre broadband. | :09:05. | :09:07. | |
He is due to say that the UK must move towards providing fibre | :09:08. | :09:10. | |
Currently, only 2% of the UK has access to fibre internet. | :09:11. | :09:28. | |
We We will talk about that in more | :09:29. | :10:21. | |
The insurance industry says carmakers will need to provide more | :10:22. | :10:25. |