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The UK strengthens trade ties post-Brexit: The United Kingdom has joined the comprehensive and progressive agreement for trans-pacific partnership (CPTPP) this week in a bid to expand trade since leaving the EU, Reuters reports.
What does this mean? The UK will now be able to apply CPTPP trade rules and lower tariffs with eight of the existing 11 members including Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore and Vietnam, the newswire writes. The country is slated to channel over 99% of its current goods exports to CPTPP nations without tariffs, boosting its economy by c. GBP 2 bn annually by 2040. The agreement will take effect in Australia on 24 December 2024, and with Canada and Mexico 60 days after they ratify the document.
We knew this was coming: The UK said it was set to join the CPTPP on 15 December back in September, after it received the final go ahead from the group. It officially became a member of the USD 15.7 bn Trans-Pacific Partnership Agreement in July 2023.
Boeing plans to spend USD 1 bn to boost the production of 787 Dreamliner widebody jets and upgrade the infrastructure at its Charleston County facility in South Carolina, according to a statement published on Thursday. The move comes in a bid to meet the aviation giant’s goal of producing ten 787 jets a month by 2026.
REMEMBER- Boeing was expecting slower growth in production and deliveries of 787 Dreamliners in April, on the back of shortages of key components. The company was turning out five Dreamliners a month as of last year.
Korea Air has finalized the USD 1.3 bn acquisition of Asiana Airlines, uptaking a 63.88% stake in the airline and positioning itself as one of Asia’s largest carriers, Reuters reported on Thursday. The larger Korean Air group is now expected to be able to handle over half of South Korea’s passenger capacity, making it the world’s 12-largest airline by international capacity, Reuters analysis says. Asiana will first be operated as a subsidiary of Korean Air for up to two years, after which it will be integrated into one airline under the Korean Air title.
Moving forward: South Korea’s transport ministry is looking to introduce measures to bolster competitiveness by smaller airlines in the domestic market, including medium and long-haul traffic rights for low-cost carriers. A Fair Trade Commission (FTC) will establish a panel to monitor Korean Air’s compliance with the conditions for the acquisition’s approval.
India + Russia sign their largest oil supply agreement to date: Russian oil producer Rosneft has inked a 10-year agreement to supply c.USD 13 bn worth of c. 500k bpd of crude oil to Indian refiner Reliance, which amounts to 0.5% of global crude oil supply, unnamed sources familiar with the transaction told Reuters on Thursday. The amount to be supplied to Reliance amounts to 0.5% of global crude oil supply. This marks the largest agreement of its kind between the two countries.
What we know: Under the agreement, Rosneft will deliver 20 to 21 Aframax-sized cargoes or 80 to 100k metric tons of various Russian crude grades and three cargoes of c.100k tons each of fuel oil every month, sources told the newswire. The oil will go to Reliance’s refining complex at Jamnagar in the western state of Gujarat, with pricing to be reviewed every year according to the market. India currently has no sanctions on Russian oil, and Western sanctions have made it cheaper than oil from rivals by at least USD 3 or USD 4 per barrel, Reuters writes.
