MEMORANDUM OF UNDERSTANDING BETWEEN FEMOZA AND RALIAN RESEARCH & CONSULTANCY SRL

Yesterday, May 19 th 2020, RALIAN Research & Consultancy srl signed a Memorandum of Understanding with The World Free & Special Economic Zones Federation (FEMOZA).

Proud of this honor, we share the news with our customers and with all stakeholders, aware that the honor received covers us with great responsibility and motivates us even more in our daily commitment to provide our contribution for the implementation of a economic system which, through tools for accelerating economic development such as Special Economic Zones, Simplified Logistic Zones,  free zones, helps the attraction of investments for the harmonious and sustainable growth of businesses, territories and countries.

FEMOZA, is a non-governmental organization under the aegis of the United Nations which represents the interests of free zones and special economic zones and which promotes their implementation in the world. Founded in 1999, it is the most important organization in the sector, with representatives in over 225 countries. Since 2003 FEMOZA also has the status of Observer at UNCTAD and UNIDO.

At this time when it is necessary to relaunch the economy of many Countries in the world, including Italy, as a consequence of the pandemic from SARS COVID 19, the Special Economic Zones, in all their multiple declinations, can be the most suitable tools to revive the economy and promoting lasting and sustainable development.

We thank Mr. Juan Torrents, Chairman of FEMOZA for the trust shown in us and for the attestation of esteem that he wanted to provide us with the MoU.

A virtual handshake is a seal of a collaboration that we are sure will lead to good results

 

RALIAN Research & Consultancy srl. © Copyright 2020 –  All rights reserved.

A virtual and motivational coffee with Dr. Manildo Ettore. Practical Q&A for a post pandemic recovery in the name of success.

18th of May 2020. The great reopening. From today the general rehearsal of a recovery phase that we were looking forward to. But to starting again on the right foot and, above all, with the right mind, it is necessary using all the resources. Not only the economic and financial ones that are fundamental for our business company and for keeping safe our economy. It is necessary that our body, our mind, are in the right direction, that is, they have to be able to accept the challenge, uncertainty, fear, change. Behind every company, behind every economic system there is the human being, who through his ideas, his behaviors, his decisions guides with precision and competence the complex ship of progress and commercial exchanges. The goal is the economic and social well-being spreading through the dynamics of profit and fair payment to workers.

For this reason, from today, we will publish a series of advice from experts, successful entrepreneurs, great exponents of the economic and cultural world, not only Italians, who will help us understand from their point of view what is happening and how to take advantage of this moment of crisis in a great opportunity leveraging on strategic assets of companies and of our being men and women able to overcome our limits for a bigger goal: the construction of a renewed economic system able to learn from the past and resist the attacks of the future.

We will also interview ordinary people who can tell us a story, an experience that can give us the right way to start again and not to feel defeated. Nobody should be left behind. This must be our belief, our commitment and our responsibility. We are all part of the whole and although we cannot act on very high dynamics and national and international programming, we can link our common efforts for a cooperation network that makes everyone winner.
It is for this reason that today we wanted to start taking our first virtual coffee with a national expert on psycho-physical well-being, a motivator, an expert of the human soul and the impact that our attitude has on our body. “It will be all right” we said everyday for two months. Now we have to believe it, believe it to the end. Let’s see how.

RALIAN: Dr. Manildo, you are known nationally and internationally as a great human motivator, as well as an expert in natural medicine and Kinesiology. Can you explain to us what your activity consists of and what are the objectives to which your passionate work tends?

Dr. Manildo: I mainly deal with natural or complementary medicine, in particular Osteopathy and Applied Kinesiology, the latter is a non-nosological diagnostic technique capable of intercepting and solving a series of defined functional disorders, which often are not evident from the instrumental investigations such as analysis, magnetic resonances, CT scan.
And therefore applied Kinesiology helps us to understand the reason for many ailments such as: migraine, gastric reflux, overweight, abdominal bloating, itching, sleep disturbances, chronic fatigue, joint pain and more. These techniques aim at the psychophysical rebalancing of the body, before these disorders turn into chronic diseases, where the use of conventional drugs and therapies becomes fundamental.
The operational protocols of K.A. and Osteopathy are completely natural, based on the use of Phytocomplexes (Essential oils, gemmoderivatives, trace elements, floral essences, aqueous macerates) and then combines the diet, which must be detoxifying and alkalizing. These two techniques are never invasive and are free of contraindications and side effects and are part of a new approach to health, in terms of prevention with a new holistic 360-degree view.

R: Normally we separate the emotional sphere from the economic sphere. However, sociological theories and the practical application of motivational systems, the humanization of economic and production processes, the exaltation of the importance of the so-called soft skills are increasingly considered fundamental within the human potential within the company. In your opinion, at this moment how much the emotional sphere can contaminate, prejudice or rather facilitate, boost the human recovery in an economic and professional perspective?

DM: The emotional sphere plays a fundamental role both as regards the person’s state of health, both towards their self-esteem and therefore in the positive attitude towards themselves, towards others and towards all aspects of life, not least that linked to development skills in the economic and professional fields. Only in the last 20 years science, and in particular medicine, have focused attention on the connections between the mind and the physical body, through the study of a branch called PNEI, the neuroendocrinoimmunological psycho system, which deals with the connections between the central nervous system, the immune system and the endocrine one.
Emotional conflicts and emotions in general can cause alterations of the psycho-physical system and, in addition to generating diseases, can induce the subject to evolve towards a destructive rather than constructive entropy. By constructive entropy we mean all the phenomena that increase order and reduce “chaos”; on the contrary the destructive one will increase the disorder.
Constructive thinking will be able to generate new ideas, useful in times of economic and professional difficulty. Luck or bad luck often depends only on how much we are able to develop constructive or destructive thoughts and actions.
Thoughts are a set of photons that all go in the same direction; to change their direction, it is necessary to acquire a new awareness in order to transform the reality around us.
For the purpose of an economic recovery, the first thing to do is to change the beliefs and beliefs that are trapped within us and condition our lives. Quantum physics teaches us that thought generates matter: the reality we live in is not disconnected from us, but it is a reflection of what we think and if we think constructively, we could witness successes and goals hitherto unthinkable even in the professional field .

R: We have just come out of one of the most difficult health emergencies in our recent history, we have experienced isolation, we still face social distancing. In your opinion, what are the short, medium and long-term consequences for people and what is needed, compatibly with the prevention of contagion, to help individuals in this delicate recovery phase?
D.M .: The health emergency has certainly changed and will partially change our way of life. In this phase of world emergency, you will have to learn to live with the virus, implementing first of all the distancing and all the necessary rules to remain protected from contagion. According to my humble opinion, however, the virulent force of the virus and the countermeasures that the various governments and healthcare facilities will be able to field, may prove to be sufficient, to ensure that the world economy, and therefore work, can slowly resume and allow everyone to be able to live as before, if not better than before . All the dramatic experiences have taught us that after a difficult period there is always a recovery and suffering always brings changes in humankind (or at least hopefully) and therefore greater respect for nature, towards animals and in one’s own way of to live .
In order to better face a possible return of the epidemic or the onset of a disease, it is necessary to improve our nutrition and therefore the conditions of our intestine: the latter is essential for an efficient immune response. Fear also plays an important role in the development of diseases, especially those of the lung and respiratory system. Being afraid means weakening the ability of our immune system to fight pathogens (viruses and bacteria). To overcome fear, I can advise you to practice some forms of passive meditation, such as reciting a mantra or a prayer of whatever religion it is, or spend a few minutes a day in meditation or some deep breathing techniques. All these techniques aim at relaxation and therefore lead to the mitigation of phenomena such as anxiety and depression.

R: Human, economic and civil experience teaches that in the succession of crises that have shaken humanity, there are opportunities to be seized. From the point of view of the emotional and motivational path, what do you think are the opportunities to be taken to better enjoy the near future, mindful of the experience lived? And how much the lack of a healthy emotional and motivational activity can lead to social crises and civil unrest?

D.M.:When we experience a crisis, we are faced with a sudden crossroads; we can choose the way forward: let ourselves go to despair and defeat, or we can change our destiny, pursuing our well-being and professional gratification. Crises can be a danger, or an opportunity.
The pandemic and the consequent economic crisis can offer us the desire to create a better world and if we do not let ourselves be involved in pessimistic thinking, we can create the basis for a new life, or even a new job. This Lockdown period has allowed us to be a little more thoughtful and introspective and, sometimes, when we are silent and peaceful in our own home walls, our mind can elaborate strategic concepts and ideas to deal differently with what we we have done so far. To conclude, the crisis must not annihilate us, but must lead us to the change we want to see in our way of life, for our health and for our very survival. We must be convinced that we can implement it, because our destiny is only in our hands.

R: You are also involved in kinesiology and osteopathy. How much the absence of sport, the deprivation of aerobic activity, especially in children and young people, can be detrimental to proper growth in body and spirit? How much being disconnected from nature, from which we descend ancestrally, has created an emotional distance and how can we help our children, our kids and people in general to fill that gap that we had to dig into our lives?

D.M .: During the Lockdown, the inability to go out and play games or sports, has created sedentary phenomena in adults, but especially in children, with relative weight gain and psychological discomfort. Motor activity is fundamental for the child’s psychomotor development, in particular from 0 to 12 years, when all the most important factors of psychomotor development such as balance, lateralness, coordination develop … Keeping a child in home is like imprisoning a bird in a cage. The child needs to socialize, experience nature and forge character; keeping him imprisoned at home, without being able to understand what is really going on, can cause emotional trauma. To fill this gap, the presence of the family is fundamental: the parent’s figure must replace that of one of his peers, transferring the perception that nothing has happened and that everything will return as before.
Furthermore, school-aged children had to face a new reality, initially perhaps captivating, but certainly penalizing not only for their training but above all on an emotional and healthy level. The difficult task of parents and teachers to which all our understanding goes. I highly recommend to anyone who has the opportunity to keep their children outdoors for as long as possible, to make them take walks in contact with nature, in company, in the woods or on the beach. The important thing is to keep them away from television, and video games for a sort of detoxification. And if they are lucky enough to have grandparents, it would be nice and appropriate for them to spend more time with them to make up for lost time.
R: Can you tell us 5 words that you think we must repeat and implement as a mantra to help us in moments of bewilderment, fear and uncertainty for the future?
D.M .: In times when we find despair and fear assails us, I recommend writing or thinking, possibly outdoors and on a green lawn, this mantra:
1) I don’t know where I will be
2) I don’t know who I will be with
3) I don’t know what I’ll do,
But one thing is certain, that in the future I will be much better than it is now.
We can recite it two or three times and if we wrote it on a sheet of paper, it would be the case that after the recitation the sheet was burnt and returned to the universe.

 

We thank Dr. Manildo for having virtually taken a coffee with us and shared important issues for our emotional and economic recovery. We dedicate this interview to all entrepreneurs, all workers and all families who are experiencing the profound discomfort of uncertainty. Alongside national income support measures, there must be a profound conviction that our attitude affects our life, our results.

See you to the next virtual coffee.

We will virtually take it to France with the Chief Financial Officer of an important start-up acceleration and incubation company operating worldwide.

 

RALIAN Research & Consultancy.

© Copyright 2020 – All rights reserved

Phase 2, Italy as Genoa.

Phase two must necessarily pass through concrete proposals for administrative simplification, the provision of instruments for accelerating economic development capable of enhancing the extraordinary entrepreneurship that our country has in its economic system. Our “made in Italy” brand is recognized all over the world and needs an extraordinary relaunch. Through special economic zones, customs free zones, simplified logistic zones it is possible to accelerate an economic recovery for a new Italian miracle. Tax exemption accompanied by a massive simplification, together with an essential infrastructure enhancement both in terms of logistics and in terms of stimulating public spending, will push consumption and production upwards for the benefit of our GDP.

The moment of forced stasis makes us reflect on the necessary co-responsibility and participation of citizens in the political-allocative choices of our political representatives. The model used so far has failed miserably by mortifying health, education, culture and innovation, the only pillars that have kept us alive, while collapsing on themselves, in recent months.
There will be no other possibility. Plan with foresight, facilitate businesses, invest in infrastructure, education, health, enhance the social role of culture and creativity, bet on the innovation that derives from it.
Special attention is paid to tourism, the great absence of the programs. The sector generates an important part of GDP and distributes wealth across the entire chain. You can’t just wait. The sector must be supported concretely and restructured also with acceleration logics as happens in other parts of the world (Dubai, for example).

RALIAN has been working tirelessly in recent weeks on a development program that will be fundamental for the next few years. From here we will start to make our voice heard even more on the issues we care about. Our daily commitment in recent months has been, is and will be in this sense. We are an active part in relaunching the Italian post-COVID economy – 19. And we are proud and grateful for this. Silently, stubbornly and incessantly.

The picture of Genoa that proudly shows its reconstructed  Morandi bridge is the warning that inspires our hearts. Italy is there. Italy does not stop like Genoa did not stop. Italy like Genoa does not let itself be overwhelmed by events but reacts, roars, gets up, rebuilds itself, superb, proud and proud.

We want to feel an arrow touch our heart and there in the heart explode. We want to hear that “L’Italia s’è desta ” (, Italy has awakened, as our  National anthem says), once again, in front of the eyes of the world, especially in front of the eyes of that part of the world that told us that we Italians would not have made it.

Simplifying. Reducing taxes. Investing. Relaunching. Taking part. Programming. Starting again.  Flying.

Can the culture represent a driving force of economic development for the territory?

Can the culture represent a driving force of economic development for the territory?
RALIAN Research & Consultancy srl CEO, Valentina Di Milla, gave her answer in the seminar addressed to students of the three-year period of Marketing and Tourism of the “Fermi” Technical-Economic Institute of Gaeta (Italy).
The speech has been focused on the theme of cultural and creative enterprise, a new way of doing economy on a global level, which provides for the humanization of production processes, creativity as the beating heart of the company, cultural promotion at the center of interest entrepreneurial.
Recognized by the European Union as an essential factor for the economic and social growth of the entire European territory, participating in the EU Gross Domestic Product for approximately 3%, cultural enterprises are the new challenge in an innovative economic context.
The cultural enterprise represents a network of human values ​​placed at the center of an economic project to spread territorial, cultural, artistic, technological, creative and, therefore, professional beauty.
It follows that the creative and cultural industry is a natural added value for any other company in the industrial sector.
The video of the interview is available at the minute 2.32 on https://www.youtube.com/watch?v=jrztDvlEHQE

FOREIGN-TRADE ZONES: THE US TOOL FOR THE PROMOTION OF FOREIGN TRADE.

According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2019, around 5400 Special Economic Zones variously denominated are registered worldwide. Most of them are located in developing and transition countries, especially in Asia and the Far East.

As regards the SEZs existing in the economies of the developed countries, their main connotation consists in the presence of suspensions of a customs nature, that is to say, for example, in case of goods imported in the described areas , duties and VAT by destination and other customs duties till then suspended do not apply until they are released for free circulation. The largest number of this type of zone is into the United States land where they are denominated Foreign-Trade Zones (FTZ).
The further tax concessions that characterize them give to the FTZs a value that they would otherwise not have in terms of the global economy.
This circumstance can be observed in very few European Union countries, including Poland, Bulgaria, Lithuania and Latvia.
The FTZs are customs free zones, under the customs supervision of the United States, considered (as what happens in similar situations in the European Union), through a fictio iuris set outside the U.S. customs territory for the purposes of the duty.
These areas have been established to encouraging national companies’s use compared to foreign ones for the production and distribution phases of the products. The benefits planned in the FTZ consist of relief from tariffs and other customs administrative charges which, otherwise, would penalize the competitiveness of US companies compared to foreign ones. It is possible that each Free Trade Zone for its part will establish Subzones: currently around 500 of them are registered.
As required by current legislation for SEZs in Italy, the FTZs are located in the incoming customs ports or in neighboring territories, and constitute the American model of what are commonly called Free Trade Zones.
The normative source is the Foreign – Trade Zones Act of 18 June 1934, as amended by the Designation of Enterprise Zones, L. 102–550, 1992 and by the Regulations of the Foreign-Trade Zones Board, 15 CFR Part 400, 2012.
Currently, of the 262 authorized Foreign-Trade Zones, 195 are operative, as evidenced by official data of the 80th Annual Report of the Foreign-Trade Zones Board – 2018, presented at the United States Congress in November 2019.
The presence of the FTZs guaranteed a job for over 440,000 people, employed in approximately 3,300 companies that resort to the FTZs for their business activities, for a value of commercial transactions of 793 billion dollars, with an increasing trend compared to the previous year. In particular, the activity of the FTZ is rising in terms of both domestic and foreign trade, with a positive differential of $ 124 billion since 2017.
Of these, approximately 63% concerned production activities, with a turnover of approximately 504 billion dollars, while the remaining 37% concerned warehouse and distribution operations.
It is worth noting that the FTZ are not designed exclusively for foreign goods. In fact, domestic goods have an important positive impact on the activity of the FTZs.
The most represented production sectors concern the automotive, oil, electronics, pharmaceutical and machinery and equipment ones.
he main federal agencies overseeing the development of the Foreign-Trade Zones program are the Foreign-Trade Zones Board of the United States Department of Commerce and the Customs and the United States Border Police (CBP).

Copyright © 2019 —Ralian Research & Consultancy SRL. All Rights Reserved.

 

Cultural and creative enterprise

A few decades ago, investing in a cultural and creative enterprise was certainly the most visionary decision that could be taken. It was at the center of an ardent debate that contrasted the political world with the scientific world. The sector of the cultural industry was considered in a negative way: an industry that has neither real inputs nor as many tangible outputs, it is certainly an industry that does not produce. In reality, the fruit of human intellect, of its imagination and of its particular inspiration is really a production in the economic sense. It will be precisely the English political world, through the words of Tony Blair, then British Prime Minister, to recognize the economic value of the creative industry, attributing to it the ability to create wealth and work through the use of intellectual property. In addition to this recognition, another direct consequence of the first was born: the extraordinary creative and innovative scope inherent in the cultural sector enterprises to stimulate a virtuous spiral of growth in the economic and social fields. In Italy, at the end of 2007, the President of the Republic Giorgio Napolitano, in his speech at the end of the year, stated that “a strength of our ountry is the culture of creativity, which must make the potential of our businesses and of our work”. It is undeniable that creativity favors the growth of the economy and puts companies in a position of competitive advantage. Hence the exaltation of the economic and social significance of a new way of doing economy which, after more than a decade from these affirmations, manifests itself in all its truth: human value, people, their formation and the development of their knowledge, constitute the real added value of a company.

Our conclusion is based on the observation of the internal and managerial dynamics of a cultural / creative company. In fact, in this industrial context personal skills and technical knowledge are not enough. The conditio sine qua non which is the basis for the success and the innovative capacity of a cultural enterprise is inexorably the environment within which it operates, so as to encourage its creative vision and, at the same time, an economy that seriously wants to invest in it. It is a complex process that bases its very survival on a necessary and sufficient condition, identifiable with the coexistence and perfect collaboration of indispensable and irreplaceable assets as unique, such as ideas, abilities, preparation, expertise and talent , with technological innovation and culture. It is precisely culture that is the productive factor capable of triggering the entire process of cultural and creative production through which we can develop new products.

Furthermore, the analysis of a cultural enterprise must be examined for each type of activity that can potentially be delivered. If we observe it from an artistic production point of view, the creative potential is expressed in all its grandeur through the conception and realization of a quid never realized before, a unique and authentic product, the result of imagination, style and inspiration. The economic repercussions are its immediate consequence and close as in a perfect circle in which it is no longer possible to understand its beginning and its end, precisely because that innovation establishes an uninterrupted and dynamic cycle that finds its economic justification in the more than perfect allocation of unique intangible assets, including artistic inspiration, technological innovations and new economic scenarios, with the combination of human, social, institutional and cultural factors. It follows that creativity is not “only” the inspiration that underlies innovation, but is one of the main and indispensable factors that contribute to its development. In fact creative ideas are indispensable both in the initial phase and throughout its production process. The economic consistency of the project will be born from them, starting from its creation, up to the distribution of the new output (product, service and / or process) that maximizes the utility of the final consumer bringing the greatest benefit through his purchase. This virtuous process will produce long-term effects.

The European Union attaches great importance to the cultural sector and through Article 167 of the Treaty on the Functioning of the European Union (TFEU) sanctions its discipline, defining its principles and the current framework through substantive contents and decision-making procedures.

It is not a coincidence, in fact, that in the same preamble to the Treaty on European Union (TEU) is expressed the precise desire to be inspired by “the cultural, religious and humanist inheritance of Europe” through a concrete commitment to respect “its rich cultural and linguistic diversity, and shall ensure that Europe’s cultural heritage is safeguarded and enhanced. (Article 3 of the TEU). These inspiring principles allow the introduction of an important innovation in the decision-making procedures within the Council. In particular, decisions relating to cultural spheres (mainly with regard to the format and scope of funding programs) do not required to vote unanimously, as in the past, but are considered adopted through the expression of qualified majority voting. The ratio is to be found in the attempt to promote a complete development of the cultures of the Member States, while respecting individual national and regional differences, in order to enhance their common cultural heritage.

The protection of culture is also accepted in the Charter of Fundamental Rights of the European Union. In particular, article 13 states “the arts and scientific research are free” and article 22 states that “the Union respects cultural, religious and linguistic diversity”.

Therefore it is not risky to conclude that, for the European Union, the cultural sector is one of the privileged instruments capable of implementing the highest objectives of prosperity, solidarity, security and internationalization. The latter in particular cannot be carried out outside a process of recognition and contemporary protection of cultural diversity and intercultural dialogue. Culture, from the point of view of the Community legislator, is to be understood as a true accelerator of creativity and international relations.

The “Creative Europe” framework program dedicates € 1.46 billion to the cultural and creative sector for the period 2014 to 2020. It is structured in the Culture Sub-program and in the MEDIA Sub-Program and in a “cross-sectoral” section that acts through a guarantee fund designed for two different purposes: to facilitate access to credit for micro, small and medium-sized enterprises in the sector; to allow a more precise and equitable assessment of risks in financial intermediation.  This helps building  an inclusive and far-sighted entrepreneurial and financial ecosystem, which enhances all the enormous potential of the sector and, at the same time, reassures public and / or private investors of the reliability and economic capacity of the cultural and creative sector.

It should be noted that the amount of budget available to the cultural sector will be defined in this month of December. If on the one hand, rumors speak of an increase in the sum made available to the cultural and creative sector, bringing it to a doubling of that expected in the previous period. However, there are also many concerns about deep cuts in the sector, as feared by Sabine Verheyen, president of the EU CULT Commission.

The arguments put forward so far would remain sterile words if they were not supported, as they are, by numbers and statistics. In particular, according to the most recent Eurostat periodical publication, the cultural and creative sector as a driver of economic growth:

– contributes more than 2% to the European Gross Domestic Product;

– it is an important employment source with more than 8.7 million jobs to its credit, for a value equal to 3.8% of total employment. The confirmation of what has been stated comes from highly innovative companies, which possess an important economic potential and the possibility, through alternative and highly innovative financing channels (crowfunding, smart finance, business angels), to penetrate the market in a disruptive way generating other occupation, as well as stimulating foreign trade.

– is a dynamic and stimulating sector able to attract unique talents and “transilient” minds. A meltin ‘pop of diversity and uniqueness that stimulates, fascinates, attracts, innovates, creates, realizes, reproduces, embellishes, enchants, monetizes, teaches, elevates. A varied constellation of professionalism that ranges from the “creative, artistic and entertainment” arts, to “libraries, archives, museums and other cultural activities”, as well as from the sector of production and programming of audiovisual, radio, cinema, record activities, to sector of specialized design activities.

Welcome to a new era, that one in which doing business is a question of culture.

© Copyright 2019 – All rights reserved

THE IRISH BORDER AND BREXIT. A POSSIBLE HYPOTHESIS OF A SPECIAL ECONOMIC ZONE WITH ECONOMIC-POLITICAL FUNCTION

The Irish border​ and Brexit. A possible hypothesis of a special economic zone with economic-political function

The question of finding the best way out to achieve a Brexit that is as satisfying as possible with respect to national and international interests (even divergent ones) in play, as is known, includes a further problem: the management of the “Irish Border” affair.
Evidently it is not a small problem, because without an ad hoc solution, it would be a matter of applying the rigid and complicated rules of the customs regime in force according to the CDU in the commercial relations between the European Union and third countries, on a border of about 500 kilometers that for over 46 years, from the point of view of commodity flows, has been in fact a “weak border” subject to the rules of the single market.
According to the most recent data, about 33% of exports of goods and services produced by Northern Ireland companies go towards Eire.
In 2018, Northern Ireland’s interchange with Eire consisted of about 3 billion pounds in exports and 2 billion pounds in imports, equivalent to a trade balance of 1 billion pounds and a bilateral trade of almost 5 and a half billion pounds.
Eire is both the 1st country of export for Northern Ireland (equal to about 36% of its total exports) and the 1st import market (equal to about 28% of its total imports) .
In detail, most cross-border transactions were carried out by micro and small businesses, which represent the focus the economy of Northern Ireland, with about 74% of exports involving companies with less than 50 employees.
The UK’s trade flow to foreign countries is direct for about 6% towards Ireland, which is the 4th country with which it has greater connections, after the USA, Germany and China.
The same interchange report if analyzed by the Irish side, reveals that on the total foreign trade relations the flow with the United Kingdom accounts for 18%, and constitutes the 2nd country with which it has more connections after the USA.
According to The Guardian, every year 450,000 trailers arrive in Northern Ireland, transporting cars, foodstuffs and textiles: the total import value of the United Kingdom is about 13 billion pounds, of which about 11 billion pounds corresponds to the value of the goods purchased.
The continuity of this trade interchange must be safeguarded.
The United Kingdom before the Brexit process, in the Belt and Road Initiative (BRI), represented the potentially key partner for China to mediate within the European Union on particularly “hot” issues from a commercial point of view.
So now “Downing Street” should find a solution to safeguard its competitive ability in the markets, which could be strongly influenced, both because of the Brexit process and because of the lack of involvement (for the moment) in the BRI.
In this regard, Ireland is ready after Brexit to replace Britain as China’s new trusted interlocutor in the promotion of the Belt and Road Initiative, according to what the Foreign Minister (which is also Irish Deputy Prime Minister) said in recent months. On the other hand, the good link between the Dublin government and the Beijing government historically includes many examples of good trade relations, starting from the role of model played by the Shannon Free Zone created in 1959, and that of its functionaries, tutors for the creation of the first special economic zones in southern China in 1980, to feed the economic and commercial reform, the cd “Open door policy”, launched by Deng Xiao Ping.
So for London it is of vital importance to take this perspective into account because the effects on the United Kingdom could have very negative impact precisely starting from the economic consequences created on the commercial exchanges that take place through the border between Eire and Northern Ireland.
The occurrence of possible negative economic consequences, however, also exposes to the risk of the possible re-emergence of possible political frictions in this delicate area, historically never definitively placated.
This is why the contents of some points proposed by the British Government for the Brexit Agreement go in the direction of creating a sort of special economic zone along the Irish border.
This idea could have an important political value, and this would be in line with the functional evolution in the world of the SEZs. In fact, the increase of its relevance as a political tool to attract investments, will determine an ever greater attention both of the single SEZs and of the countries to look beyond administrative boundaries and therefore to develop integrated transnational approaches to the development of the SEZs.
Therefore in the present case it would be very desirable to create a “cross country” SEZ (for example above all in the area including the cities of Derry and Donegal), as happened in other parts of the world with positive results.
The endorsement by the European Union of this solution could be a good opportunity for the Brussels institutions to abandon their anachronistic position of substantial dogmatic and preconceived ostracism on the SEZs (which worldwide have become increasingly congenial to the historical context of a globalized economic development and dependent from the connection with the Global Value Chains, which today represent almost 50% of exchanges around the world) and to implement a more effective “realpolitik”, with effects of importance not only economic but also, as in this case, of evident specific weight to solve political-diplomatic issues.
© Copyright 2019 – All rights reserved
Valentina Di Milla
Chief Executive Officer
RALIAN Consultancy & Research SRL