Could the U.K. reenter a customs deal with the EU?

Summary

Marketplace Morning Report

Episode: Could the U.K. Reenter a Customs Deal with the EU?
Release Date: January 23, 2025

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The latest episode of Marketplace Morning Report delves into the evolving dynamics between the United Kingdom and the European Union post-Brexit, explores significant shifts in the EU's energy sector, examines Saudi Arabia's burgeoning film industry under Vision 2030, and touches upon notable financial milestones in the sports world. Hosted by the Marketplace team, including guest insights from the BBC World Service, the episode offers a comprehensive overview of critical economic and cultural developments shaping the global landscape.

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1. Could the United Kingdom Reenter a Customs Deal with the EU?

Brexit's Trade Implications

The episode opens with an in-depth analysis of the Brexit aftermath, focusing on the United Kingdom's departure from the EU's free trade area. This separation has introduced new bureaucratic hurdles, including paperwork and physical checks for goods moving between the UK and EU member states. The discussion pivots to the European Union's consideration of allowing the UK to join a pan-European customs scheme, which could significantly reduce trade frictions.

Insights from EU Trade Commissioner Maris Šefcovic

Maris Šefcovic, EU Trade Commissioner, provides an optimistic perspective on post-Brexit relations. Speaking from Davos at the World Economic Forum, he states:

"Definitely, yes. We are also waiting for the ideas from our British friends about the reset, how concretely they would like to do it."
[01:42]

Šefcovic emphasizes the EU's willingness to explore a reset in relations, contingent upon the UK's proposals. He adds:

"I think that it might be one of the ideas at the same time, as we concluded also after these very strenuous negotiations of these three agreements, that even the best free trade agreement cannot simply replace participation in the single market. But we respected the choice."
[02:01]

Prospects for Reduced Trade Frictions

Chris Rosslow, a BBC contributor, notes the potential for an improved relationship:

"Is there scope for a much better relationship? Perhaps not totally frictionless trade, but far fewer frictions than have existed."
[01:51]

The conversation highlights ongoing consultations within the British government, with no definitive decisions yet made. The possibility of rejoining a customs framework could pave the way for smoother economic interactions, benefiting businesses on both sides.

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2. EU Energy Sector Transformation: Solar Surpasses Coal

Solar Energy Milestone

A beacon of progress in the EU's fight against climate change is the recent report from the Ember think tank, revealing that solar energy has overtaken coal in the EU's power industry for the first time last year. Additionally, the study highlights a sustained decline in gas generation, marking the fifth consecutive year of reduction.

Expert Commentary from Dr. Chris Rosslow

Dr. Chris Rosslow, lead author of the Ember report, explains the factors driving this transformation:

"We see coal power exiting the European system quite rapidly. It now provides just 10% of EU power and 10 countries don't use coal whatsoever for power generation anymore. I think this has been gaining pace since the start of the European green deal five years ago."
[03:27]

He further elaborates on the urgency brought about by the gas crisis:

"The gas crisis a few years ago... sent gas prices soaring and at the same time, almost coincidentally, fortunately, solar power became incredibly, incredibly cheap."
[03:54]

This shift underscores the EU's commitment to renewable energy sources and its strategic response to geopolitical and economic challenges impacting energy prices.

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3. Saudi Arabia's Cultural Renaissance: The Rise of a Global Film Hub

Vision 2030 and Cultural Expansion

Saudi Arabia is undergoing a significant transformation under Crown Prince Mohammed bin Salman's Vision 2030, aimed at diversifying the economy beyond oil and enhancing the kingdom's cultural soft power. A key aspect of this vision is the burgeoning film industry, marked by newfound freedoms and substantial state investment.

Emergence of Saudi Talent and International Collaboration

Emily Wither from the BBC reports on a film festival in Jeddah, highlighting Saudi actress Maria Bahwari, who starred in the first Saudi film to make it to Cannes. Ben Dalton, Senior Reporter at Script International, shares his experience:

"Being part of such a program inspired me to continue sharing Saudi stories with the world."
[04:56]

David Devoli, President of International at Anonymous Content, discusses the attractive incentives for filmmakers:

"It’s a pretty robust program. 40% rebate on the amount of money that you spend in the country on a show, and that's obviously quite attractive for a lot of productions."
[06:31]

Navigating Cultural and Human Rights Concerns

However, the expansion is not without its challenges. Filmmakers must navigate Saudi Arabia's strict regulations on content. Ben Dalton mentions:

"There are a few red lines that are not allowed to be shot in Saudi, like nudity, sexual scenes."
[05:47]

David Devoli advises:

"Coming in with eyes wide open, learning about it, understanding the past, and then you make a value proposition for yourself, like, are you okay with it or are you not okay with it?"
[06:56]

The episode underscores the delicate balance between economic opportunities and the kingdom's human rights record, highlighting ongoing debates within the global film community.

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4. Other Notable News

Real Madrid's Financial Milestone

In a brief segment, the report highlights Real Madrid becoming the first soccer club to generate more than 1 billion euros (over $1 billion) in revenue in a single season. This achievement marks a significant financial milestone in the sports industry.

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Conclusion

This episode of Marketplace Morning Report offers a multifaceted exploration of critical issues affecting international trade, energy sustainability, cultural transformation, and financial achievements. From the potential recalibration of UK-EU trade relations to the EU's rapid adoption of solar energy, the Saudi Arabian film industry's growth, and Real Madrid's unprecedented revenue, the report provides listeners with a nuanced understanding of the forces shaping our global economy and culture.

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For more detailed insights and updates, listen to the full episode of Marketplace Morning Report.

Transcript

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[Steven Ryan]

To Europe Again, at Least for trade? Live from the BBC World Service, this is the Marketplace Morning Report. I'm Steven Ryan Esmichuse Vonnerien in for Lianna Byrne. Hello there. When Brexit happened, the United Kingdom left a free trade area that meant goods moved freely without checks. Now there's paperwork and physical checks for some things, but the European Union could consider allowing the UK to join a pan European customs scheme and that could ease the red tape. The BBC's economics editor, Faisal Islam has been talking to the EU Trade Commissioner Maris Shefkovic in Davos at the World Economic Forum. Are post Brexit relations between Brussels and London really in a better place?

[Maros Sefcovic]

Definitely, yes. We are also waiting for the ideas from our British friends about the reset, how concretely they would like to do it.

[Chris Rosslow]

Is there scope for a much better relationship? Perhaps not totally frictionless trade, but far fewer frictions than have existed.

[Maros Sefcovic]

I think that it might be one of the ideas at the same time, as we concluded also after these very strenuous negotiations of these three agreements, that even the best free trade agreement cannot simply replace participation in the single market. But we respected the choice. We respect, of course, how the UK government approaches this and this pan European area is something we could consider, but I haven't heard it so precisely formulated from our UK counterparts.

[Steven Ryan]

EU Trade Commissioner Mara Shefkovic at the World Economic Forum in Davos, BBC News understands the British government has begun consultations with businesses, but no final decision yet has been made. Checking the numbers. Also at Davos, the boss of Norway's sovereign wealth fund has warned inflationary pressures in the US pose a risk to financial markets this year. However, the pan European Stoxx 600 is little changed this morning, as are oil prices. There's a ray of light in the ongoing fight against climate change after a new report issued Thursday shows solar energy overtook coal in the European Union's power industry for the first time last year. The study from the Ember think tank also found EU gas generation declined for a fifth year in a row. Add to that total fossil generation, which hit an historic low. Dr. Chris Rossellow from Ember is the lead author of this report. He told the BBC why the shift to solar is such a pivotal moment.

[Dr. Chris Rosslow]

We see coal power exiting the European system quite rapidly. It now provides just 10% of EU power and 10 countries don't use coal whatsoever for power generation anymore. I think this has been gaining pace since the start of the European green deal five years ago. But what really added some urgency was the gas crisis a few years ago. So that sent gas prices soaring and at the same time, almost coincidentally, fortunately, solar power became incredibly, incredibly cheap.

[Steven Ryan]

Dr. Chris Rosslow in just a few years, Saudi Arabia has gone from a kingdom where cinemas were banned to a rising star in the global film industry. The BBC's Emily Wither has been to a festival in Jeddah to hear from Saudis reveling in newfound freedoms and foreign filmmakers lured in by cash incentives. But some are questioning how best to do business in a place with a poor record on human rights.

[David Devoli]

Audio test 1, 2, 3.

[Chris Rosslow]

Normally it will be this.

[Emily Wither]

I've come to an event being hosted by the industry magazine Screen International. They're announcing their Arab stars of tomorrow. Opening up the kingdom and Cinemas here in 2018 was all part of Crown Prince Mohammed bin Salman, also known as MBS's Grand Vision 2030 to diversify the economy away from oil and expand the kingdom's cultural soft power through sports and entertainment. Saudi actress Maria Bahwari has just been named one to watch. This year she performed in the first Saudi film to make it to Cannes, one of the world's most prestigious film gatherings.

[Ben Dalton]

Being part of such a program inspired me to continue sharing Saudi stories with the world.

[Chris Rosslow]

My name is Ben Dalton. I'm senior reporter for UK and International at Script International. There are international American, European filmmakers who are starting to engage with the country. Guy Ritchie is an example is shooting films here. There are still many people who don't feel that same way and who have perhaps concerns.

[Emily Wither]

Here with her own stand is Saudi producer Rasha El Mam.

[Ben Dalton]

One of the main messages we always try to get across is that Saudi is not just a desert. There is so much landscape and diversity. We would like to invite everyone to come to Saudi to see it, scout, make a film here.

[Emily Wither]

What kind of films will be able to access these new funding streams? Will they have to reflect certain values? Are there going to be certain rules around who can get investment here?

[Ben Dalton]

There are a few red lines that are not allowed to be shot in Saudi, like nudity, sexual scenes.

[Emily Wither]

MBS had signaled in his vision 2030 an intent to rewrite the Kingdom script. The subplot, though, has always been marred by allegations of a disregard for human rights and a harsh crackdown on dissent. The Kingdom tightly controls speech and remains one of the world's most prolific executioners. Much of the cash being pumped into the entertainment industry comes directly from the state's public investment fund, also known as pif. Back at the festival, I speak to David Devoli. He's president of International at Anonymous Content, an independent global entertainment company based in la.

[David Devoli]

I met with the film commission yesterday to learn a little bit more about what is on offer. And it's a pretty robust program. 40% rebate on the amount of money that you spend in the country on a show, and that's obviously quite attractive for a lot of productions.

[Emily Wither]

Some businesses, some talent are reluctant occasionally to work here. How can you navigate that?

[David Devoli]

Coming in with eyes wide open, learning about it, understanding the past, and then you make a value proposition for yourself, like, are you okay with it or are you not okay with it?

[Steven Ryan]

Emily Wither reporting there. Finally, Real Madrid has become the first soccer club to generate more than 1 billion euro. That's just over a billion dollars in revenue over a single season. I'm Stephen Ryan. It's Mrs. Stefano Rien. Thanks for listening to the Marketplace Morning report from the BBC World.

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