WTO warns against damaging EU-UK trade war when risks to growth are high


Damien McElroy
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World Trade Organisation head Ngozi Okonjo-Iweala warned on Saturday against a slide into a trade war between the UK and the EU.

Speaking on the sidelines of the G7 summit in Cornwall, Mrs Okonjo-Iweala said the world faced a surfeit of challenges without tensions between the European and Brexit Britain spilling into retaliatory measures. 
"I would really, really hope that a UK-EU trade war will not take place," the director-general said. 
"With all the opportunities there are for dialogue, I would be a little surprised if we ended up with a UK-EU trade war.

“It’s too costly for both sides. This is not what the world needs right now.”

British Prime Minister Boris Johnson said on Saturday that he would suspend the Northern Ireland Protocol of the Brexit agreement with the EU as the two sides fight over how it has been implemented. He said London was ready to invoke the Article 16 clause pausing the deal.

"I think if the protocol continues to be applied in this way, then we will obviously not hesitate to invoke Article 16, as I have said before," he said.

Instead of spending billions on fighting the coronavirus outbreak, Mrs Okonjo-Iweala said the world had spend $26 trillion.

She called for the target in the 2021 vaccine rollout to be raised from 40 per cent of the world population to 60 per cent.

World Trade Organisation Director-General Ngozi Okonjo-Iweala was in Cornwall to discuss coronavirus vaccines with G7 leaders. AFP
World Trade Organisation Director-General Ngozi Okonjo-Iweala was in Cornwall to discuss coronavirus vaccines with G7 leaders. AFP

In the US, the Biden administration has joined a push supported by more than 100 countries to gain a intellectual property waiver for vaccine production.

Alongside investment in vaccine production in more countries, particularly those in Africa, the US wants to remove patent barriers.

Mrs Okonjo-Iweala called for a decision on the proposal by July.

"I hope the G7 leaders will continue along the path of the commitment to really reverse the inequity in access to vaccines," she said. "This is what is going to lift out the recovery and reduce the case rate."

Despite criticism that a pledge to donate vaccines to poor countries was not properly funded, she welcomed the moved to boost the Covax initiative for global vaccine distribution.

The G7 has said its members plan to accelerate the donation of about one billion vaccine doses.

"We've heard about donating vaccines, mostly to Covax, which is a wonderful promise. We hope this will happen fairly quickly because there are some countries that haven't even had one dose delivered," Mrs Okonjo-Iweala said.

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Founder: Hasib Khan

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Employees: 40

Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.

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Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.

As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.

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Inter Milan 2 (Martinez 33, Lukaku 63)

 

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Sangeeta Bandyopadhyay
Translated by Arunava Sinha
Tilted Axis Press 

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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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Fulham 0

Red cards: Tim Ream (Fulham)

Man of the Match: Gabriel Jesus (Manchester City)

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
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England v South Africa schedule
  • First Test: Starts Thursday, Lord's, 2pm (UAE)
  • Second Test: July 14-18, Trent Bridge, Nottingham, 2pm
  • Third Test: The Oval, London, July 27-31, 2pm
  • Fourth Test: Old Trafford, Manchester, August 4-8
EMERGENCY PHONE NUMBERS

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

 

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The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5