Category Archives: International trade

Rishi Sunak to urge Narendra Modi to take stronger stance on Russia

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Two prime ministers to meet before G20 summit as India continues to import Russian oil and weapons

Rishi Sunak will use a meeting with Narendra Modi in Delhi to push the Indian prime minister to take a tougher stance towards Russia, Downing Street has said.

The two prime ministers will meet this weekend before the G20 summit in the Indian capital, where Russia’s invasion of Ukraine will be discussed in front of the Russian foreign minister, Sergei Lavrov. Vladimir Putin, the Russian president, told Modi a week ago he would not attend.

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A UK trade deal with India was promised by last October. Why is it still not ready?

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Successive prime ministers have failed to achieve what they see as one of the great dividends offered by Brexit

Liz Truss bowled into Downing Street last summer with a promise to rip up much of what her predecessor Boris Johnson had done. However, one goal remained: she insisted, as Johnson had done, she could deliver a free trade deal with India by Diwali in October.

Whitehall officials were dismayed, therefore, when they received the latest set of demands from Indian negotiators. It was not that New Delhi was asking too much, rather they were not saying what they were asking at all.

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Rishi Sunak rules out quick-fix trade deal with India

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Exclusive: Sources believe deal will not be struck before meeting with Narendra Modi at G20 summit

Rishi Sunak has ruled out a quick-fix trade deal with India, making it impossible to get an agreement over the line in time for this week’s G20 summit in Delhi – and possibly even by next year’s elections.

Multiple sources close to the negotiations told the Guardian the prime minister has rejected the idea of an “early harvest” deal, which could have lowered tariffs on goods such as whisky but would not have dealt with trickier subjects such as professional services.

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UK solar could be ‘dumping ground’ for products of Chinese forced labour, ministers warned

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Energy bill amendment requires large solar energy projects to prove supply chain free of slave labour

The UK risks becoming a dumping ground for the products of forced labour from Xinjiang province in China if it rejects reforms proposed by members of the foreign affairs select committee with cross-party support, ministers have been warned.

An amendment to the energy bill, due to be debated on Tuesday, would require solar energy companies to prove that their supply chains are free of slave labour. The Xinjiang region is the source of 35%-40% of the world’s solar-grade polysilicon, the key raw material in the solar photovoltaic supply chain.

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Inflation spiral: food prices could yet rise higher and may never come down

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Concerns are growing over the effects of a warming climate on production and the danger of high grocery prices getting embedded into Australia’s economy

Food prices have been rising rapidly and there are reasons to fear they will push even higher. Economists warn some prices might never come down.

The ominous outlook is linked to drought conditions wilting crops in major grain-producing nations, disrupted grain deliveries out of Ukraine and moves by governments to ban food exports to protect their own supplies.

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Australia’s oversupply of wine tops 2.8bn bottles in wake of China trade dispute

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New report suggests glut will last years, even if Beijing drops tariffs early, while prices of Australian red wine grapes plummet by more than half

Australia has an oversupply equivalent to more than 2.8bn bottles of wine – a little more than 100 bottles per person – after the trade dispute with China slashed exports to the biggest consumer of Australian wines.

The excess wine is being stored in large steel vats in wineries across Australia, equating to 859 Olympic wine-filled swimming pools.

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India’s ban on rice exports raises fear of global food price rises

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Attempt to curb domestic inflation behind country’s decision on non-basmati white rice

India has banned non-basmati white rice exports to curb domestic inflation, raising fears of further increases in global food prices just days after wheat and corn prices were sent climbing by Russia’s termination of a key grain deal.

The immediate ban, introduced after heavy rains hit domestic crops, follows the failure of a 20% duty on international exports introduced in September to curb foreign demand, which has soared after extreme climate conditions hit production in countries.

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China delays decision on Australian barley tariffs in setback on resolving trade disputes

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Exclusive: The Albanese government says it is ‘disappointed’ Beijing’s review couldn’t be completed in the initial three months

China has asked for an extra month to decide whether to scrap hefty tariffs on Australian barley, dashing hopes of an imminent breakthrough in one of the biggest trade disputes between the two countries.

The Albanese government said it was disappointed by the delay, and warned that it was ready to revive its case at the global trade umpire, the World Trade Organization, if Beijing doesn’t scrap the measure by August.

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The US and China are talking again, but what happens next?

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After years of deepening economic and military mistrust between the superpowers, they were finally back in a room together

When Janet Yellen left Beijing on Sunday after four days of talks, the US treasury secretary in effect admitted that the delegation achieved its main objective simply by sitting down with top Chinese officials.

After years of dangerous and deepening separation between the people running the world’s two biggest economies, they were finally back in a room together.

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Janet Yellen tells China the world is ‘big enough for both our countries to thrive’

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US treasury secretary feels trip to Beijing has steadied ties and improved communication despite ‘significant disagreements’ between the powers

The US treasury secretary, Janet Yellen, has said a four-day trip to Beijing has put ties with China on a “surer footing” and paved the way for better communication between top officials who run the world’s two largest economies.

This relatively modest outcome had been flagged by US officials and expected by analysts before Yellen arrived, and is a reflection of how fraught one of the world’s most critical relationships had become.

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US Treasury secretary Janet Yellen to visit China to build ‘healthy’ ties with Beijing

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Yellen heads to Beijing this week in move one expert calls an attempt to ‘put some floor’ under strained economic ties

US Treasury secretary Janet Yellen will visit Beijing this week, marking the second trip by a cabinet official to China since ties between the world’s top two economies deteriorated earlier this year.

Yellen is expected to discuss with her counterparts the importance for both countries “to responsibly manage our relationship, communicate directly about areas of concern, and work together to address global challenges”, said the Treasury Department in a statement on Sunday.

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UK’s post-Brexit trade deals with Australia and New Zealand kick in

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Move called ‘historic’ but agreement with Australia forecast to raise Britain’s GDP by only 0.08% by 2035

The UK’s post-Brexit trade deals with Australia and New Zealand have come into force, a moment lauded by the government as “historic” despite critics arguing they give away “far too much for far too little”.

The trade agreements – the first of those negotiated after Britain’s EU exit to enter into force – come after George Eustice, who was the environment secretary when the UK-Australia trade pact was struck in December 2021, admitted it was “not actually a very good deal” for Britain.

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Coalition says Anthony Albanese should not go to China until trade sanctions are lifted

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Simon Birmingham says ‘clarity should be there before the prime minister entertains a formal state visit to Beijing’

The shadow minister for foreign affairs, Simon Birmingham, says Anthony Albanese should not visit Beijing until all trade sanctions have been lifted.

Birmingham, a former trade minister in the Coalition government, said Australia “deserves to have absolute clarity that these sanctions are going to be lifted and that clarity should be there before the prime minister entertains a formal state visit to Beijing”.

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Sunak to urge G7 support for collective action against ‘economic coercion’

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Leaders expected to form council that will discuss response if states such as Russia and China boycott trade for political reasons

The UK and other G7 countries are planning collective action against Russia and China if they threaten trade boycotts for political reasons, announcing a new body to deal with “economic coercion”.

Rishi Sunak will urge “bold and pragmatic collective action” against hostile states that stop trading with other countries when they disagree with their geopolitical decisions.

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Ford, Vauxhall owner and JLR call for UK to renegotiate Brexit deal

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Carmakers call on Britain to change rules on batteries that they say threaten electric vehicle production

Three big global carmakers have called on the UK government to renegotiate the Brexit deal, saying rules on where parts are sourced from threaten the future of the British automotive industry.

Ford and Jaguar Land Rover have joined Stellantis, which owns the Vauxhall, Peugeot and Citroën brands, to warn the transition to electric vehicles will be knocked off course unless the UK and EU delay stricter “rules of origin”, due to kick in next year, that could add tariffs on car exports.

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Cyprus handed 800-page US dossier on Russia sanctions breaches

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Report details how local people and firms helped Alisher Usmanov’s conceal immense wealth

Cyprus has received an 800-page dossier from the US government detailing sanctions breaches by local individuals and entities that are alleged to have enabled the Russian billionaire, Alisher Usmanov, to conceal his immense wealth.

As the island’s leader Nikos Christodoulides vowed to push ahead with the prosecution of law and audit firms that had aided the oligarch, Washington released documents that amounted to a toolkit to facilitate the process. At least two other dossiers are expected to follow.

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China ‘barring thousands of citizens and foreigners from leaving country’

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Analysis of Chinese court records shows eightfold increase in cases mentioning exit bans between 2016 and 2022

China is increasingly barring people, including foreign executives, from leaving the country, according to a report and research.

Scores of Chinese nationals and foreigners have been ensnared by exit bans, according to the report from the rights group Safeguard Defenders, while a Reuters analysis has found an apparent surge in court cases involving such bans in recent years.

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If China invaded Taiwan it would destroy world trade, says James Cleverly

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UK foreign secretary warns a war across Taiwan strait and likely destruction of semiconductor industry would have global effects

A Chinese invasion of Taiwan would destroy world trade, and distance would offer no protection to the inevitable catastrophic blow to the global economy, the UK’s foreign secretary, James Cleverly, warned in a set piece speech on Britain’s relations with Beijing.

In remarks that differ from French president Emmanuel Macron’s attempts to distance Europe from any potential US involvement in a future conflict over Taiwan, and which firmly support continued if guarded engagement with Beijing, Cleverly said “no country could shield itself from the repercussions of a war in Taiwan”.

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Canada’s decision to expand container port is ‘death sentence’ for marine life

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Environmentalists decry move but natural resources minister says doubling of Vancouver terminal’s size is needed to meet demand

Canada’s federal government has approved a controversial container terminal expansion in Vancouver that would double the port’s current size but could have damaging effects for maritime species already on the brink of extinction, environmental groups warn.

The country’s natural resources minister announced support for the Port of Vancouver’s plan – which would effectively double the size of the Roberts Bank Terminal – framing the decision as a way of preventing future backlog.

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India and Russia in ‘advanced talks’ over free trade agreement

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Deal would build closer economic ties as most western states push to isolate Moscow over Ukraine

India and Russia have entered “advanced negotiations” over a free trade agreement that aims to build closer economic ties as most western governments push to isolate Moscow over the war in Ukraine.

In a development likely to add to tensions in Washington, London and EU capitals, Russia and India’s trade ministers said on Monday the two countries were in talks to strike a free trade deal.

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