Financial News

Daily Picks Tuesday: EU Withdrawal Bill officially becomes law

3 Min Read

EU Withdrawal Bill officially becomes law


  • The legislation enables EU law to be transferred into UK law in an attempt to ensure a smooth Brexit.
  • The EU Withdrawal Act, as it is now known, will also repeal the 1972 European Communities Act, which took Britain into the EU and meant that European law took precedence over laws passed in the UK Parliament.

Brexit uncertainty putting thousands of jobs at risk, says car industry


  • Car manufacturers have warned Theresa May there is “no Brexit dividend” for the industry, with investment in the sector and thousands of jobs being put at risk unless the government “rethinks” its red lines in negotiations.
  • The sector had grown for the eighth successive year with turnover at a record £82bn in 2017. However, it said 2018 has showed a slowdown in output, with investment earmarked for new models, equipment and facilities in the UK halving to about £347m.
  • The government had “no credible plan B” for customs arrangements post-Brexit, it said, that would keep the port of Dover flowing freely.
  • Car manufacturers rely on what is known as “just in time” production whereby components, mostly from the EU, cross the Channel just hours before they are needed on the assembly line. More than 1,000 trucks a day cross the Channel with these components.
  • Frictionless borders could only be achieved through continued membership of the customs union and maintenance of the benefits that the single market delivered.
  • The car industry is one of the leading employers in the country, responsible for 856,000 jobs, 186,000 of which are on the production lines.

How the EU and the U.S. Fought a Banana Trade War


  • During the banana wars between the U.S. and the EU, tariffs touched 100%.
  • This trade war started during the 1990s and lasted for more than two decades.
  • From the beginning the WTO supported the U.S. and even said it could retaliate if the EU did not eliminate its trade barriers. So when the EU ignored the WTO decision, the U.S. did retaliate.
  • In 2001, the U.S lifted its punitive tariffs after the EU said it would phase out the quotas. But they continued negotiating and finally nailed an agreement in 2009. As for the tariffs, they were supposed to have diminished in stages by 2017.
  • Although the banana wars involving the EU and the U.S. were unusually long, they were not uniquely complex. You can see that solving a trade dispute takes time, patience, rule…and the WTO.