May 17, 2020

UK government partners with CIPS

Georgia Wilson
2 min
UK House of Parliment and Big Ben
UK government has partnered with the Charted Institute of Procurement and Supply (CIPS) to ensure its supply chains are free from modern day slavery...

UK government has partnered with the Charted Institute of Procurement and Supply (CIPS) to ensure its supply chains are free from modern day slavery.

CIPS is one of the world’s largest procurement and supply professional organisation with a global community of over 200,000 people in 180 countries.

As part of the partnership, CIPS will offer its CIPS Ethical Procurement online training to the UK government on how to identify and report modern slavery. The announcement comes as part of the pan-Government policy – announced earlier this year – to ensure those who engage with commercial aspects of the government actively participate in efforts to drive more ethical practices across all government activity.

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“We welcome this announcement and are pleased to continue our work with the Government on this issue of immense importance – our partnership underpins our commitment to ensure Modern Day Slavery is eradicated and we are proud of the role we have played in this initiative,” says Malcolm Harrison, Group CEO at CIPS.

 “I am delighted to see the launch of this modern slavery policy and guide. It will help the public sector commercial teams identify and work towards eliminating modern slavery in our supply chains. It has been developed in consultation with experts from inside and outside government, so I hope that the tools in it will also be useful for the private sector. Tackling modern slavery is a shared endeavour, and one we must work on urgently,” says Gareth Rhys Williams, Government Chief Commercial Officer, UK Cabinet Office. “Professionals must be equipped with the best possible training and guidance so they have the confidence to tackle the issue appropriately. I am pleased that the Government Commercial Function is working with CIPS to help tackle this crime.”

 

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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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