Category Archives: Trade policy

‘It’s all a bit marginal’: claims of Brexit trade perks don’t add up, say firms

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A business department report trumpeting the four-year benefits of leaving the EU does not match the reality faced by companies

On the four-year anniversary of Brexit last Wednesday, business and trade secretary Kemi Badenoch trumpeted its successes. “The British people’s conviction that the UK would excel as masters of our own fate has paid dividends,” she said, launching a report detailing the benefits.

Among the top achievements listed were booming sales of honey to Saudi Arabia, surging pet food exports to India, a rush of UK pork, worth £18m over five years, heading into Mexico’s restaurants and homes, and UK beauty products sales leaping in China, thanks to barriers being smashed.

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New Brexit food checks likely to mean less choice, warn delis

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Guild of Fine Food fears European suppliers of specialist produce will stop supplying UK because of red tape

Thousands of delicatessens and other specialist food shops have said new border rules that come in from Wednesday are likely to mean reduced choice of products for consumers.

The Guild of Fine Food (GFF), which represents 12,000 businesses, has raised fears that European suppliers of specialist foods such as cheeses and meats will stop supplying the UK as a result of the additional red tape for imported goods.

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UK ditches post-Brexit Canada trade talks; Vodafone and Three UK merger under investigation – as it happened

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Live, rolling coverage of business, economics and financial markets as Canada says UK was unwilling to give access to agricultural products

Shares in US chipmaker Intel have slumped in pre-market trading after it revealed a weaker forecast of earnings.

Chipmakers have been flying in recent years as shortages followed by the huge hype over artificial intelligence – which is hungry for processing power – prompted investors to pile into the sector.

Although Intel beat estimates, investors’ disappointment in Intel’s datacentre GPU story’s growth can be primarily attributed to the slower-than-expected product delivery and ramp-up.

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Hard cheese: Canada rejects British attempt to secure tariff-free exports

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Many UK cheese makers could face 245% duty from 1 January, making exporting unaffordable

A priceless opportunity to sell “more affordable high-quality cheese to Canada” was one of those many Brexit boons that Boris Johnson championed with his customary blather as prime minister.

A bespoke UK-Canada trade deal was going to open up the Canadian market to cheddar, stilton and wensleydale in a way that had never been possible under a trading agreement struck between the EU and Canada.

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UK and Switzerland agree to deepen ties between City and Swiss banking system

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Treasury says post-Brexit tie-up to be signed on Thursday will ease cross-border market access for financial services

The UK and Switzerland will agree to forge closer links on Thursday in a post-Brexit accord that aims to deepen ties between the City and the Swiss banking system.

In a move that brings Europe’s largest financial centres closer together, the mutual recognition agreement will be signed on Thursday by the chancellor, Jeremy Hunt, during a visit to Berne.

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No 10 team arrives in Delhi to revive talks over free trade deal

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Exclusive: Pre-election agreement would provide a major boost to Narendra Modi and Rishi Sunak

Senior Downing Street officials have flown to Delhi to kickstart talks over a multibillion pound free trade agreement, with the government of Narendra Modi having indicated it is keen to finalise a deal in the next three months.

UK trade negotiators are in the Indian capital talking to their Indian counterparts as they look to revive a deal that looked a distant prospect just a few months ago.

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UK will not return to Cameron era’s close ties with China, Sunak says

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At summit to drum up foreign investment PM says he does not intend to change policy towards Beijing

Rishi Sunak has said the UK will not return to the close relationship with China pursued under David Cameron, as the prime minister met business leaders in an effort to drum up foreign investment.

The government on Monday said £29.5bn of new investment had been earmarked for the UK, including projects by the ScottishPower owner, Iberdrola, and BioNTech, the German company that partnered with Pfizer on its Covid vaccine.

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UK’s flagship post-Brexit trade deal worth even less than previously thought, OBR says

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Office for Budget Responsibility says UK entry into the Indo-Pacific agreement will add just 0.04% to GDP in the long run

The UK’s flagship trans-Pacific trade deal, which was presented as a cornerstone of post-Brexit “global Britain”, will deliver even less benefit to the economy than the tiny uplift that was previously predicted, according to the Office for Budget Responsibility.

In a report accompanying last week’s autumn statement, the OBR said the UK’s entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) would add just 0.04% to GDP in the “long run”, which it defines as after 15 years of membership.

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China tells UK to stop using trade to improve Taiwan ties

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UK and Taiwan sign trade agreement they hailed as a first in fostering bilateral trade between Taiwan and Europe

China’s government has accused the UK of using trade cooperation “as an excuse” to enhance its ties with Taiwan, after the announcement of a bilateral trade talks agreement.

On Wednesday Taiwan’s representative to the UK, Kelly Hsieh, and his British counterpart based in Taipei, John Dennis, signed an enhanced trade partnership (ETP). The agreement paves the way for future talks on green energy, digital trade and investment, among other trade-based issues. The UK is Taiwan’s third-biggest trading partner in Europe and 21st largest overall.

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Beef, soy and palm oil products linked to deforestation still imported into UK

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Campaigners accuse government of failing to stick to promises made at Cop26 climate summit in 2021

Beef, soy and palm oil products driving deforestation are still being imported into the UK, despite government promises this practice would end, data has revealed.

Campaigners have criticised the Department for Environment, Food and Rural Affairs (Defra) for failing to put practices in place to stop the import of goods from areas with high deforestation rates. This is despite the government having promised at the Cop26 climate conference in 2021 to implement the rules.

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‘Failed to be a critical friend’: UK accused of taking eye off Israel-Palestine crisis

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Critics say government shies away from standing up to Netanyahu in tilt to Indo-Pacific and pursuit of Middle East trade deals

Concerns that the UK Foreign Office has neglected the Israel-Palestine conflict in its tilt to the Indo-Pacific and the pursuit of trade deals across the Middle East is to be investigated by the foreign affairs select committee.

Alicia Kearns, the chair of the committee, which will start holding evidence sessions on the issue in November, has been one of the most prominent MPs warning that a crisis was brewing that required greater attention and a more robust approach from the UK towards Israel’s new government.

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UK accused of plan to further cut cost of bananas at expense of poorest African producers

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UK refusing to commit to EU pledge to stop cutting tariffs on big producers despite bananas being as cheap today as three decades ago

It is one of the few British supermarket staples to have bucked the trend during the cost of living crisis, with the price of a bunch of bananas today no more expensive today than three decades ago. Every country in the world with cheaper prices than the UK has its own producers of the fruit.

The government has now been accused of pursuing an irresponsible post-Brexit policy that could reduce the price of bananas further in the shops – but at the cost of the livelihoods of thousands of workers on small plantations in some of Africa’s poorest countries.

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Delay EU tariffs to help sales of electric cars, says UK car industry

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Brexit trade deal gave UK and EU carmakers until 1 January 2024 to source batteries from within Europe or face 10% tariffs

The UK car industry has said incoming tariffs between the UK and the EU could raise the price of imported electric cars by as much as £3,400 unless a solution is found by the end of the year.

The Brexit trade deal between the UK and EU gave carmakers until 1 January 2024 to source batteries from within Europe or face 10% tariffs when exporting to each other. However, the supply of European-made batteries has failed to meet demand, meaning carmakers face the new tariffs from next year under these “rules of origin”.

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Germany invites UK to reach improved Brexit trading deal

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Finance minister offers standing invitation to ‘intensify your trade relationship to the EU’

The German finance minister has issued an open invitation to the UK to reach a new deal to improve Brexit trading relations that would reduce trade barriers and “obstacles in daily business life”.

Christian Lindner told the BBC: “This is a standing invitation for the UK: if you want to intensify your trade relationship to the EU, call us. We really appreciate the United Kingdom and its values, its people … and I would really, really appreciate it if we can intensify [the trade relationship] again.”

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Carmakers call on EU to delay 10% tariff on electric vehicle exports

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Manufacturers expect levy agreed in Brexit deal to hand chunk of market to global firms, including China

Car giants including Renault, BMW and Mercedes-Benz have called on EU leaders to “act now” and delay plans for a 10% tariff on electric car exports from Europe.

Renault’s chief, Luca de Meo, led the calls, saying that if the EU did not take action then policymakers would simply be “handing a chunk of the market to global manufacturers” including Chinese companies, which are making significant inroads.

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‘Warm and productive’: Sunak positive after talks with Modi at G20

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UK PM meets Indian counterpart on fringes of summit to discuss cooperation on trade, education, research and defence – but not Ukraine

Rishi Sunak and Narendra Modi met on Saturday for what the British prime minister called a “very warm and productive discussion” covering everything from trade to cooperation on education, research and defence.

Sunak met his Indian counterpart on the sidelines of the G20 summit in New Delhi, saying afterwards he was confident they could “work through” the remaining hurdles standing in the way of a free trade agreement.

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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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Rishi Sunak ready to discuss corporate visas deal with India, No 10 suggests

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PM travels to Delhi for G20 summit this weekend and is likely to discuss trade agreement with Narendra Modi

Rishi Sunak is willing to discuss corporate visas as part of a trade negotiation with India, Downing Street officials have indicated, as he flies to Delhi this weekend hoping to lay the groundwork for an agreement later this year.

Sunak lands in Delhi on Friday for the weekend’s G20 summit of world leaders, but will begin his trip with a key meeting with Narendra Modi at which officials say the two prime ministers are likely to discuss the sensitive subject of the prospective trade deal.

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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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