Category Archives: Trade policy

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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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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Trade deal with Indian could be a double-edged sword for Sunak

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The position of the PM’s wife as a shareholder in a company that could benefit from an agreement is a major headache for No 10

• Read more: Rishi Sunak faces fresh conflict of interest row of India trade talks

With a general election not far away and the economy still struggling, Rishi Sunak is on the hunt for good news. Next month he will be in New Delhi for the G20 summit – a visit that will be unusually rich with picture opportunities and chances to strike deals. Sunak’s parents are of Indian Punjabi descent and his wife, Akshata Murthy, is a hugely wealthy Indian businesswoman, fashion designer and venture capitalist. In many ways it will be a homecoming for the first Asian couple ever to occupy No 10.

Sunak’s business and trade secretary, Kemi Badenoch, has been in India over the past few days, laying the ground for a string of announcements with her G20 counterparts. Inevitably, much of the talk in UK and Indian diplomatic, business and trade circles has been about the possibility of a post-Brexit trade deal between the UK and India. The two governments had hoped to conclude one last autumn but negotiations have dragged on.

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Rishi Sunak faces fresh conflict of interest row over India trade talks

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Exclusive: Labour has called for more financial transparency after it was revealed the prime minister’s wife’s shares could benefit from the agreement

• Read more: trade deal with Indian could be double-edged sword for Sunak

Rishi Sunak faces a new conflict of interest row before a G20 summit in New Delhi next month over claims that his family could stand to benefit financially from a post-Brexit trade deal that he is negotiating with India.

MPs and trade experts say there are concerns at the highest levels of government over potential “transparency” issues relating to his wife Akshata Murty’s shareholding – worth almost £500m – in the massive Bengaluru-based international IT services and consultancy company Infosys.

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UK minister heads to India as post-Brexit trade talks reportedly ramp up – business live

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UK trade secretary Kemi Badenoch is expected to progress talks with Indian counterparts in Jaipur, during a meeting of G20 trade ministers

A UK-India trade deal is likely to stay “tantalisingly out of reach”, one commentator warns.

Striking a deal would be a“game changer” for post-Brexit Britain, Susannah Streeter, head of money and markets at Hargreaves Lansdown, says.

Hopes that the UK can give its very sluggish growth prospects a boost with a big trade win this autumn are fading after reports that a major deal with India remains elusive.

It appears that final negotiations have run into the long grass, with thorny issues such as visas for Indian workers still likely to be problematic.

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Labour’s shared values with Democrats will aid UK-US trade deals, says shadow minister

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If both parties win election in 2024, their ideological closeness would make them strong allies, says Nick Thomas-Symonds

Labour’s ideological closeness to the Democrats puts the party in an ideal position to sign trade deals with the US should both parties win their elections next year, the shadow trade secretary has said.

Nick Thomas-Symonds told the Guardian he thought Labour’s shared economic values with the Biden administration meant his party would have more success than the Conservative government has had in making trade agreements across a range of sectors.

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UK Brexit checks on fresh food from EU delayed for fifth time, reports say

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Government source reportedly says there are concerns extra red tape could fuel further inflation

Brexit checks on fresh farm produce coming to the UK from the EU have been delayed for the fifth time, according to reports.

The decision to suspend plans to enforce the controls, which have been applied in the other direction to British exports to the EU since January 2021, is due to be announced imminently, according to the Financial Times.

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Tory MPs expected to back Labour plans to reintroduce animal welfare bill

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Conservative backbenchers plan to speak in favour of opposition motion to force government’s hand

Rishi Sunak is facing a potential headache as backbench Conservative MPs prepare to support a Labour plan to bring back ditched animal welfare policies.

Last month, ministers announced they were dropping the kept animals bill, which was part of the Tories’ 2019 manifesto. The legislation was intended to ban live exports of farm animals as well as clamp down on puppy smuggling and dog theft.

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Tesco boss: food inflation has probably peaked but prices will stay high

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Ken Murphy says higher costs of grocery imports because of Brexit are partly to blame for rising prices

The chief executive of Tesco has said food inflation has probably peaked but warns that prices are likely to stay high.

Ken Murphy, the head of the UK’s biggest supermarket chain, said the price of milk, bread, cooking oil and some vegetables such as broccoli had come down this month but inflation continued in other essentials, including rice and potatoes, as aweather issues and locked-in increases in the price of labour and energy continued to bite.

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