UK says Gulf trade deal next in line after sealing pact with EU
The UK government's dealmakers are turning their attention to the Gulf after a series of trade agreements with Europe, Chancellor Rachel Reeves has said. On Monday, a deal between London and Brussels was struck covering defence, fishing, food and passport controls. It follows agreements with the US to cut tariffs on some imports, give each partner access to the other's markets for agricultural goods and to ease trade restrictions with India. Ms Reeves told the BBC the Gulf would be the 'next deal' as the government looks to continue to forge post-Brexit trade ties. She said deals had 'come along like buses'. In April, Foreign Secretary David Lammy said the Labour government was continuing discussions with the six countries of the Gulf Co-operation Council over a trade deal which were started by the last Conservative government. UK Prime Minister Keir Starmer also hailed the 'good progress' on efforts to agree on a GCC-UK trade deal in a call with Saudi Arabia's Crown Prince Mohammed bin Salman in which they discussed 'tariffs and an economic partnership'. Ms Reeves suggested economic growth would be strengthened through recent trade deals. The UK economy grew by 0.7 per cent in the first three months of the year. 'Britain is in a better place than any other country in the world in terms of deals with those countries,' she said. 'The first deal and the best deal so far [is] with the US, we've got the best deal with the EU for any country outside the EU, and we've got the best trade agreement with India. 'Not only are these important in their own right, but it also shows that Britain now is the place for investment and business, because we've got preferential deals with the biggest economies around the world.' Ms Reeves also said the UK was 'not looking to have trade negotiations with China'. Mr Starmer hailed the deal with the EU, set out at a summit in London, as a 'win-win' for both parties, which would be the start of a new era in the UK-EU relationship. The wide-ranging deal will allow more British travellers to use passport e-gates when going on holiday to Europe, while farmers will have swifter, easier access to trade on the continent as a result of an agreement on animal and plant product standards. A 'youth experience scheme' allowing young British citizens to study and live in Europe, and a new security and defence partnership were also agreed. But it has been met with criticism after agreeing to grant European fishing trawlers a further 12 years' access to British waters. After last year's general election, Britain's Labour government said it was eager to restart talks towards securing a free-trade agreement with the GCC. Negotiations resumed in September and since then online and in-person negotiations have taken place, including a GCC delegation visiting London in October and a UK delegation visiting Riyadh in November. The UK's Economic Secretary to the Treasury, Emma Reynolds, told The National in March the UK aimed to deepen its trade and investment partnership with the UAE and was seeking more dual listings on the London Stock Exchange to strengthen ties in the financial sector.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
an hour ago
- The National
Gaza Freedom Flotilla solidarity protests around the world
People protest in front of the Israeli embassy in Athens, Greece, in support of the Freedom Flotilla vessel Madleen that was intercepted by Israeli forces while on its way to deliver aid to Gaza. Reuters
The National
an hour ago
- The National
US and Chinese trade negotiators hold talks in London
The US and China held talks in London on Monday in an effort to preserve a fragile truce on trade. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer led the delegation from Washington. It is understood they met China's Vice Premier He Lifeng, a respected negotiator, and Commerce Minister Wang Wentao. The talks lasted for several hours and took place in Lancaster House, a historic building close to Buckingham Palace. There was no early indication on what direction the tariff talks would take, with one British official telling The National 'this is quite a sensitive topic', as both sides worked through issues late into the afternoon. But the UK attempted to smooth the way in a meeting between British Trade Secretary Jonathan Reynolds and Mr Wang, before the talks with the US delegation began. US economic adviser Ken Hassett told CNBC on Monday that he was looking for a 'handshake' that China would increase the supply of rare earth materials, which are vital to America's economy and have civilian and military uses. He hoped the discussions in London would be 'a short meeting with a big, strong handshake … that's what we're expecting'. There was optimism of progress ahead of the talks, with Beijing on Saturday approving some applications for rare earth exports, while US aviation company Boeing is to begin sending commercial jets to China for the first time since April. China also "wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips and to make it easier for Chinese tech providers to access US consumers", said Kathleen Brooks, research director at XTB. "The outcome of these discussions will be crucial for market sentiment," she added. The inclusion of Mr Lutnick, whose agency oversees export controls for the US, shows how central rare earth materials have become. China holds a near-monopoly on rare-earth magnets, a crucial component in electric vehicle motors. Mr Lutnick did not attend the talks in Geneva. Meanwhile, Wall Street stocks nudged upwards marginally, with investors hoping for significant progress that could help economies of both countries, as well as the global outlook. Mr He, who led his country's negotiating team in Geneva in May, is at the head of Beijing's team in London. 'The meeting should go very well,' US President Donald Trump said in a post on his Truth Social platform. While the British government has repeated it is not involved in the content of the discussions, the Prime Minister's official spokesman said 'we are a nation that champions free trade'. "The UK welcomes to these talks," he added. "We're a nation that champions free trade and we have always made it clear that trade wars are in nobody's interests.' The talks in London come a matter of days after Mr Trump and Chinese President Xi Jinping held their first publicly announced phone call since the Republican returned to the White House. Mr Trump said the call, which took place on Thursday, reached a 'very positive conclusion'. Mr Xi was quoted by state news agency Xinhua as saying that 'correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction'. The call came after tension between the countries increased, with Mr Trump accusing Beijing of breaching a tariff de-escalation deal reached in Geneva in May. 'We need China to comply with their side of the deal. And so that's what the trade team will be discussing' in London, Ms Leavitt said. In April, Mr Trump introduced sweeping worldwide tariffs that hit China hardest. At one point, the US imposed levies on China of 145 per cent, as both sides engaged in tit-for-tat escalation. China's countermeasures on US goods reached 125 per cent. After two days of talks in Switzerland last month, the two sides agreed to reduce their tariffs for 90 days. But differences over certain issues have persisted, including China's restrictions on the export of rare earth minerals used in technology products. The impact of the tariffs was reflected in the latest official export data released on Monday in Beijing. Exports to the US fell by 12.7 per cent in May, with China shipping $28.8 billion worth in goods. This was down from $33 billion in April, China's General Administration of Customs has said. Throughout talks with the US, China has opened discussions with other trading partners, including Japan and South Korea, in an effort to build a united front to counter Mr Trump's tariffs. On Thursday, Beijing turned to Canada, with the sides agreeing to regularise channels of communication after a period of strained relations. China is expected to host a summit with the EU in July, marking 50 years since Beijing and Brussels established diplomatic ties.
Zawya
2 hours ago
- Zawya
Italy and Israeli Paragon part ways after spyware affair
ROME: Italy and Israeli spyware maker Paragon said they have ended contracts following allegations that the Italian government used the company's technology to hack the phones of critics, according to a parliamentary report on Monday and the company. Both sides said they had severed ties, giving conflicting accounts that triggered widespread criticism from opposition parties in Italy, while the journalists' federation FNSI called on prosecutors to investigate to ascertain the facts. An official with Meta's WhatsApp chat service said in January that the spyware had targeted scores of users, including, in Italy, a journalist and members of the Mediterranea migrant sea rescue charity critical of Prime Minister Giorgia Meloni. The government said in February that seven Italian mobile phone users had been targeted by the spyware. At that time the government denied any involvement in illicit activities and said it had asked the National Cybersecurity Agency to look into the affair. A report from the parliamentary committee on security, COPASIR, said on Monday that Italian intelligence services had initially put on hold and then ended their contract with Paragon following a media outcry. It was unclear when the contract was ended. However, COPASIR recalled that, addressing parliament on February 12, the government had said that it was still in place. The committee also added it found no evidence that Francesco Cancellato, a reported target and editor of investigative website Fanpage, had been put under surveillance using Paragon's spyware, as he had alleged to Reuters and other media outlets. In a statement quoted by Fanpage, Paragon said it stopped providing spyware to Italy when Cancellato's alleged involvement became public, and said the government declined an offer to jointly investigate whether and how he was spied upon. The company did not reply to requests for comment from Reuters. Opposition politicians called on the government to clarify the matter in parliament. Meloni's office declined to comment. The COPASIR report said Italy's domestic and foreign intelligence agencies activated contracts with Paragon in 2023 and 2024 respectively and used it on a very limited number of people, with permission from a prosecutor. The foreign intelligence agency used the spyware to search for fugitives, counter illegal immigration, alleged terrorism, organised crime, fuel smuggling and counter-espionage and internal security activities, COPASIR said. It added that members of the Mediterranea charity were spied on "not as human rights activists, but in reference to their activities potentially related to irregular immigration", with permission from the government. Undersecretary Alfredo Mantovano, Meloni's point man on intelligence matters, authorised the use of Paragon spyware on Mediterranea activists Luca Casarini and Beppe Caccia on September 5, 2024, the report said. Mantovano was not immediately available for comment. A Sicilian judge last month ordered six members of Mediterranea, including Casarini and Caccia, to stand trial on accusations of aiding illegal immigration, the first time crew members of a rescue vessel have faced such prosecution. All have denied wrongdoing. (Editing by Timothy Heritage and Frances Kerry)
