May 17, 2020

RTA receives BSI certificate for sustainable procurement practices

Supply Chain
Procurement
Sustainability
Georgia Wilson
2 min
Aerial view of Dubai roads and buildings
Road and Transport Authority (RTA) received an ISO 20400:2017 certificate for its sustainable procurement practices on Friday (27 September 2019).

The...

Road and Transport Authority (RTA) received an ISO 20400:2017 certificate for its sustainable procurement practices on Friday (27 September 2019).

The certificate was rewarded to RTA by the British Standards Institute (BSI), becoming the first transport organisation to receive this certification worldwide.

“Obtaining ISO certificate endorses RTA’s efforts in implementing sound sustainable procurement and contracting processes. It also reflects the controls in place to reduce negative environmental, social and economic impacts. It complements a host of RTA’s strategic goals such as safety and environmental sustainability, financial sustainability, and asset sustainability,” explained Saeed Al Marri, Director of Contracts and Procurement at RTA’s Corporate Administrative Support Services Sector.

“It is gratifying that the environmental element was quoted in ISO certificate awarded. RTA’s care for the environment is reflected in the procurement of environmental-friendly products to conserve the use of natural resources in a responsible and sustainable manner. It also sets the standards for disposing of materials sourced through environmentally safe processes besides identifying potential areas for improvement,” continues Al Marri.

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Economically RTA looks to analyse the cost of a products lifecycle throughout the supply chain to reduce costs as well as raise the proportion of suppliers listed under the Mohammed Bin Rashid Establishment for SME Development to encourage business growth and aims to increase its work with companies that support local communities.

“RTA is keen to implement the best global practices and standards while endeavouring to improve the quality of its corporate business practices, and align them with the government policies for sustainability and expenditure,” concluded Al Marri.

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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