01/09/2017

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:00:00. > :00:16.Now it's time for World Business Report.

:00:17. > :00:18.Divorce deadlock - the EU's chief Brexit negotiator

:00:19. > :00:21.says there's been "no decisive progress" in this week's talks

:00:22. > :00:23.with Britain's exit bill the main sticking point.

:00:24. > :00:26.Plus, green shoots of recovery - how a bumper harvest is dragging

:00:27. > :00:30.Brazil out of its worst recession in a century.

:00:31. > :00:43.We start in Brussels, where the third round of Brexit

:00:44. > :00:45.negotiations has ended with "no decisive progress

:00:46. > :00:53.those are the words of the EU's chief negotiator Michel Barnier.

:00:54. > :00:57.He and his UK counterpart, Brexit Secretary David Davis,

:00:58. > :00:59.have hinted there's been some progress on the rights

:01:00. > :01:06.But there's one major sticking point - money.

:01:07. > :01:10.How much will the UK will have to pay to leave the EU?

:01:11. > :01:13.Among a huge range of estimates, some suggest Brussels will want

:01:14. > :01:15.this - $70 billion - although even higher

:01:16. > :01:23.So where are the numbers coming from?

:01:24. > :01:26.Well, Britain makes a net contribution to the EU budget of 11

:01:27. > :01:30.EU officials say it needs to keep paying into the current budget

:01:31. > :01:34.until 2020, along with other commitments.

:01:35. > :01:37.But Britain is questioning the legality of having to pay once

:01:38. > :01:47.But it won't enter into any discussion about future trade

:01:48. > :01:50.relations without the bill being settled.

:01:51. > :01:53.Those talks were supposed to start next month.

:01:54. > :01:55.But Mr Barnier is warning there is now "little

:01:56. > :02:01.Meanwhile, the UK is hoping to line up new trade deals

:02:02. > :02:05.Later today, Brexit Secretary David Davis is in Washington DC

:02:06. > :02:08.where he will address the US Chambers of Commerce.

:02:09. > :02:11.And Prime Minister Theresa May has just been in Japan to talk trade.

:02:12. > :02:14.Japanese firms employ close to 160,000 people in the UK.

:02:15. > :02:17.Japan has, of course, recently agreed a huge trade deal

:02:18. > :02:21.with the EU, just as Britain heads for the exit.

:02:22. > :02:24.On Thursday, Japanese Prime Minister Shinzo Abe pressed Mrs May

:02:25. > :02:40.TRANSLATION: The fact that even after the Brexit decision,

:02:41. > :02:45.that shows the profound trust they have in British economy.

:02:46. > :02:47.With this in mind, I have asked Prime Minister May

:02:48. > :02:49.for her continued consideration in ensuring transparency

:02:50. > :02:52.and predictability to minimise the impact on business

:02:53. > :03:01.activity involving Japanese companies.

:03:02. > :03:04.In the last few hours, the BBC has spoken to Britain's

:03:05. > :03:07.International Trade Secretary, Liam Fox, who's also in Japan.

:03:08. > :03:10.He echoed Prime Minister Abe's concerns about the need for progress

:03:11. > :03:17.It's very clear that businesses not just in Europe but investors

:03:18. > :03:19.in places like here in Japan are getting impatient

:03:20. > :03:22.and want to see that final shape of what that arrangement

:03:23. > :03:28.They want to know that there will continue to be an open

:03:29. > :03:30.and liberal trading environment in Europe,

:03:31. > :03:33.and there's a worry that if there's not the sort of agreement that

:03:34. > :03:36.Britain wants you could end up with impediments to trade

:03:37. > :03:41.and investment in Europe that don't exist today.

:03:42. > :03:44.Peter Bishop is Deputy Chief Executive of the London Chamber

:03:45. > :03:57.Thank you for joining us. Let's start with those issues of trade

:03:58. > :04:00.talks. Many had hoped perhaps measly that we could start those trade

:04:01. > :04:05.talks in October given there has been so little progress on the other

:04:06. > :04:11.issues that Michel Barnier has said it is unlikely to happen. How will

:04:12. > :04:14.that be making UK businesses feel? They like certainty, they want

:04:15. > :04:18.certainty, they want to know what is going to happen and you can delay

:04:19. > :04:22.decisions about whether you will operate in the future from the

:04:23. > :04:28.mainland or indeed Europe but you cannot put them off indefinitely

:04:29. > :04:33.decisions like that. Now, if the arrangement that we do end up having

:04:34. > :04:38.with the EU is as close to as some of us hope what it is now then

:04:39. > :04:43.actually it shouldn't take that long to put in place some areas concerned

:04:44. > :04:47.but in a panic. The issue is one of time, it is of the essence, we keep

:04:48. > :04:51.hearing about the clock ticking, the hope had been talks would start in

:04:52. > :04:55.October and we have the deadline of March 2019 and for lots of

:04:56. > :04:58.businesses they will be looking at the divorce Bill, the exit Bill, and

:04:59. > :05:03.now figures ranging up to 100 billion have been mooted. If there

:05:04. > :05:07.were feeling from the business community that if the government

:05:08. > :05:11.would just get on and settled divorce Bill and get that settles,

:05:12. > :05:15.otherwise the longer they leave it, they could end up losing out in the

:05:16. > :05:18.long-term if businesses are moving elsewhere because they haven't got

:05:19. > :05:21.the clarity they need. Of course they want the government to get on,

:05:22. > :05:26.they want a divorce Bill to be settled. And yes there is an element

:05:27. > :05:30.that depending on what Gillbee eventually do with the EU, we may be

:05:31. > :05:36.eating into the monies that we are saving by negotiating harder, as

:05:37. > :05:40.perhaps one would expect by further tariff barriers, let's say, in the

:05:41. > :05:45.future. But there is a big feeling around that there is going to be a

:05:46. > :05:49.transitional period of some years between March 19 and when the deal

:05:50. > :05:54.is finally, the deal finally kicks in. So looking after Brexit, what

:05:55. > :05:59.should the government be considering when it comes to negotiating new

:06:00. > :06:03.trade deals? What issues and what countries should they be looking at?

:06:04. > :06:09.Well, there are countries where barriers with trade between the UK

:06:10. > :06:13.or the UK as part of the EU, are high, and therefore by reducing them

:06:14. > :06:20.there is a likelihood there will be growth in trade. India is in that

:06:21. > :06:23.bracket. At the Indians will see a trade deal in the round, they will

:06:24. > :06:28.see not just tariff barriers, nontariff barrier to us, there was

:06:29. > :06:32.the cultural and education to, they will want everything to be put into

:06:33. > :06:38.the basket and then make a win- win. There are other markets face were

:06:39. > :06:41.actually trade barriers to entry are not particularly high, Britain for

:06:42. > :06:47.example exports to the states more than any other country in the world.

:06:48. > :06:52.More than Germany or France or Italy. So to spend a lot of time

:06:53. > :06:56.working out how we are going to increase trade fair when you could

:06:57. > :06:59.be putting your resource and resource is finite in this, into

:07:00. > :07:03.places like India, would be my advice. Peter, thank you very much.

:07:04. > :07:06.Let's turn to Brazil, which is emerging from the deepest

:07:07. > :07:09.recession in a century - it saw 10% wiped off its economy

:07:10. > :07:14.GDP figures out later could show it's on track to return to modest

:07:15. > :07:18.It's all down to the nation's farmers - thanks to a bumper

:07:19. > :07:20.they been have propping up the wider economy.

:07:21. > :07:23.But as Daniel Gallas reports, the country still has serious

:07:24. > :07:39.Work never stops in these fields in Brazil. Today they are covered in

:07:40. > :07:43.white as farmers are harvesting cotton. Just a few weeks from now,

:07:44. > :07:47.the land will be cleared to make way for soya bean plantations. This

:07:48. > :07:57.farmer knows how important his farm is to Brazil. We saved the country

:07:58. > :08:01.'s economy this year. It is impossible to match operas would

:08:02. > :08:04.look like without its farmers today. From the small ones to the big

:08:05. > :08:10.plantations, we are helping the country through the hard times.

:08:11. > :08:14.Agriculture accounts for more than one fifth of Brazil's economic

:08:15. > :08:19.output. This is bumper harvest means the sector will grow by more than

:08:20. > :08:23.10%. If Brazil's agriculture sector was a single country, it would be

:08:24. > :08:31.growing faster than any other nation on the planet. This man is not only

:08:32. > :08:35.a farmer, he is the mayor of a city. Revenues from agriculture have

:08:36. > :08:39.transformed his city. It boasts some of the best state funded schools in

:08:40. > :08:45.Brazil, even after the town's population tripled in size over the

:08:46. > :08:49.last decade. But despite positive stories in the town, infrastructure

:08:50. > :08:54.outside could stall the engine of growth. The long road for Brazilian

:08:55. > :08:59.exports to markets like China, Europe and the US starts here that

:09:00. > :09:03.this is one of the worst roads in Brazil. You can see there is no

:09:04. > :09:07.movement at all. It will take days for these trucks to reach the coast

:09:08. > :09:13.and that makes Brazilian products about 10% more expensive. Our

:09:14. > :09:19.transportation matrix is not adequate for the country. We need

:09:20. > :09:30.more railroads. So if we change our matrix, you would save around 100

:09:31. > :09:38.billion a year, that means $30 billion. A year. But building better

:09:39. > :09:43.roads and railways is expensive and Brazil's government is

:09:44. > :09:47.cash-strapped. Prosperity is still confined to the country's highly

:09:48. > :09:50.productive fields. The bumper harvest may help end of recession

:09:51. > :09:52.but it will not fix Brazil's more serious problems.

:09:53. > :10:05.The markets in Asia are trading. They are on the up following Wall

:10:06. > :10:09.Street which was up yesterday and concerns over North Korea and storm

:10:10. > :10:14.Harvey seemed to have eased. Keep an eye on the US jobs figures for

:10:15. > :10:18.August, the Robran goes to you when we get them. -- we will bring those

:10:19. > :10:24.to you. Nearly half of young,

:10:25. > :10:26.low-paid parents are struggling to juggle child care with work,

:10:27. > :10:30.according to a survey Researchers found that irregular

:10:31. > :10:33.hours were to blame,