Continued from page 56
US should ensure a lengthy trade war between the world’s two biggest economies, with implications for all. The simple formula the
US administration has used to set the tariffs – the size of the US trade deficit in goods with a country, divided by the volume of US imports from that country, divided by two – also makes it hard to carve out concessions. Inflation will rise
everywhere, especially in the US, which may damage Trump’s standing. But his government appears likely to slash taxes and even make payouts to households from tariff revenue. Tax cuts would entrench the tariffs, making them hard to remove without raising tax rates. Commentators have
harked back to the 1930s and the Smoot-Hawley tariffs which exacerbated the Great Depression, leading international trade to spiral, reducing its value by two-thirds between 1929 and 1933. But these tariffs eclipse those. Trade is now three times as
big a share of global GDP as it was in 1929, although US trade, at just over 10%, is a smaller share of world trade than 30 years ago and less than China (12%) and the EU (29%), while services, which comprise 20% of world trade, are not affected. The industry has enjoyed
two remarkably good years post-pandemic and this year has shown every sign of being on a par with 2024, so there is no cause for despair. But a deteriorating economic outlook and UK tax rises in the autumn now seem certain, and a downturn more likely than not.
Luton airport gains go-ahead for new terminal
The government gave a go-ahead to Luton airport expansion last week despite a Planning Inspectorate report that “the adverse environmental impacts would outweigh the economic and consumer benefits”. However, the grounds for
the decision suggest consent for expansion at Gatwick and
Heathrow can’t be guaranteed. Transport secretary Heidi
Alexander granted consent for a new terminal at Luton that will increase capacity from 18 million to 32 million passengers a year. In doing so, she noted the fact that Luton’s proposal “makes best use of its existing runway” rather than “extension of the existing or a new runway” carried “great weight”. Alexander rejected the Planning
Inspectorate’s recommendation against expansion, deciding “the economic and consumer benefits... would outweigh the environmental impacts”. But she said the application
Heidi Alexander
“made challenging demand forecasts” with economic benefits that “may have been overstated”. Gatwick expansion requires
extending an existing runway and Heathrow expansion involves constructing a new one.
EC delays introduction of sustainability directives
Ian Taylor
The European Parliament overwhelmingly agreed to delay the introduction and reduce the impact of EU directives on corporate sustainability last week. This followed significant changes
to requirements under the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) proposed by the European Commission in February. The biggest companies will get
an extra year to prepare for the due diligence reporting rules, while other companies won’t have to report on sustainability for a further two years. The CSRD only came into force
in January, imposing requirements on all EU companies with a turnover of €50 million or more and 250-plus employees, as well as on non-EU companies with significant EU business. But the EC almost
54 10 APRIL 2025
The EC is ‘recalibrating’ sustainability reporting rules
The delays should save affected companies an estimated €6.3 billion in administrative costs. In proposing the changes, the
immediately announced measures to simplify the requirements and reduce the number of companies within scope by about 80% “to boost economic growth” (Travel Weekly, March 27). Under the changes, the CSRD will
apply initially only to companies with 1,000-plus employees and €50 million- plus turnover, and its application will be delayed by two years for those due to report in 2026 and 2027. Similarly, the first wave of
CSDDD reporting – for EU companies with more than 5,000 employees and turnover above €1.5 billion – won’t apply until 2028.
EC noted: “The EU needs to foster a favourable business environment and ensure companies are not stifled by excessive regulatory burdens. That is why the commission is recalibrating some EU rules.” For companies which remain in
scope, with above 1,000 employees and €50 million turnover, the EC will “revise and simplify the existing sustainability reporting standards”, including by “substantially reducing” the number of data points required, “deleting sector-specific standards” and “relieving companies from the obligation to systematically conduct in- depth assessments of adverse impacts”. About 6,000 EU companies
and 900 non-EU companies are estimated to fall within the scope of the CSDDD, as well as “value chain partners including SMEs”.
travelweekly.co.uk
Shutterstock/Algimantas Barzdzius
Laurie Noble Photography
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