In case you missed it: UK-Canada EV deadline, NCTS5 changes and UK trade report

While many were enjoying their extended Easter weekend, the world of trade continued to turn. Here, we recap the stories and updates that you might have missed over the last few days.

Canada car trouble

The UK faces a struggle to maintain current levels of demand for its electric vehicle (EV) exports, as a deal to export them tariff-free to Canada is set to expire today (2 April) following a failure to extend it.

Bloomberg reported over the weekend that European Centre for International Political Economy director David Henig called it “embarrassing” that the UK had not been able to reach an agreement extending the tariff-free provisions with a closely allied nation.

It follows talks between UK business and trade secretary Kemi Badenoch and Canadian trade chief Mary Ng at the World Trade Organization (WTO) 13th Ministerial Conference last month.

Henig added that he thought there was “a lot of naivety” in the UK government about the expectations around trade deals following Brexit.

Xiaomi oh my

Chinese smartphone manufacturer Xiaomi has started taking orders for its first EV following the global slowdown in demand in the sector.

Yet buyers looking to purchase one of the ‘SU7’-model cars, which cost 215,900 yuan or ￡23,663, have been told they could face waits of up to six months for their car to be delivered. That defies the cooling trend in EV demand – though a recent FT column notes that production capacity is still rapidly expanding, with global EV output projected to hit 18m in 2025.

The price puts the Chinese firm at an advantage against American EV maker Tesla, whose Model 3 car costs 245,900 yuan in the Chinese market. The SU7 also shares an operating system with other Xiaomi products, including its smartphones, which it hopes will entice existing users to pick it over competitors.

BCC report

A new report from the British Chambers of Commerce (BCC) on the UK’s position in global trade, titled the ‘Global Britain Challenge’ report, has called for the country to “finally [step] out of Brexit’s long shadow”. To do that, the BCC suggests, it needs to draw new investment by working with the US, India and the EU in particular. It also calls for a “a period of calm” in UK politics to ensure a more predictable business environment.

BCC president Martha Lane Fox said at the launch of the report that the UK needs to “go after the big fish” on investment, meaning “the nations with the biggest and deepest pockets”.

In an echo of recent calls by the Institute of Export & International Trade (IOE&IT) in its ‘Global Horizons’ report, published in 2023, the BCC says that the UK should make the most of its strength in services to export more. It adds that the country needs to “secure more open access for Mode 5 provision of services embedded with goods”.

Fox noted that “this is about much more than Brexit”. Politicians, she suggested, “must set out a strategy on how we mange EU regulation and, where it makes sense, to diverge so that British business can benefit”.??

NCTS5 changes

Those using the New Computerised Transit System (NCTS) for moving goods have been notified by the government that they will now need to provide an Authorisation Reference Number when they submit a transit declaration on NCTS5.

The release notes that, if using the Government Gateway portal, the number will need to be manually inputted, while a range of options for providers exist if using commercial software for submitting transit declarations.

Authorisation Reference Numbers will be provided by HMRC between April and May, the government states. Traders are advised to “keep this number safe” and to “speak to your software provider to find out if you need to tell them your Authorisation Reference Number before you receive your new software for NCTS5”.

If a number doesn’t arrive before 20 May, traders should get in touch with the NCTS Helpdesk.

Posted by: Benjamin Roche