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An unnecessary and costly EU ‘reset'
An unnecessary and costly EU ‘reset'

Telegraph

time18-05-2025

  • Business
  • Telegraph

An unnecessary and costly EU ‘reset'

On the eve of the 'reset' summit with Brussels, Nick Thomas-Symonds has let the cat out of the bag. In a BBC interview, the Europe minister admitted that the Government is about to accede to one of the EU's cardinal principles: 'dynamic alignment'. This sinister doctrine implies that Britain will once again be obliged to accept 'common standards' on food and be subject to the jurisdiction of the European Court of Justice in Luxembourg. It is hard to exaggerate the significance of this concession. At a stroke, Labour will have sacrificed one of the biggest benefits of Brexit: taking back control of our own rules. Once national sovereignty is given away on food standards, we will find ourselves on a slippery slope. Over time, other areas of the economy will inexorably be drawn back into the EU's orbit. This is the true meaning of 'dynamic alignment': a one-way ticket to Brussels. So what will we get in return for selling our birthright for a mess of EU pottage? Mr Thomas-Symonds claims that cross-Channel trade will become 'far easier'. Yet the promised reductions in red tape are specious. Not only will they be conditional on the UK renouncing regulatory independence, but they will put at risk deals already negotiated with other trading partners – including, crucially, the United States. We risk becoming a mere EU satellite. Indeed, the so-called reset appears to be almost entirely one-sided. We must accept EU food standards and ECJ jurisdiction; join a defence pact on the EU's terms; grant free movement for young EU citizens, many of whom we will subsidise at our universities; and let the EU fish in our waters. If all this seems too much of a giveaway in exchange for shorter passport queues, that's because it is. This EU deal looks less like a reset than a capitulation. Over the coming days, ministers will doubtless try to reassure the British public that none of their concessions amounts to abandoning Brexit. But beware of doublespeak. When Mr Thomas-Symonds tells us that the Government's perspective is not 'ideological' but 'practical', he means that we will be giving away fundamental freedoms, such as the right to make and apply our own laws, in return for technicalities, such as the right to use e-gates at passport control. Labour's slow-motion unravelling of Brexit is quite unnecessary. By the time the party is punished at the ballot box, however, it may already be too late.

Starmer's US trade deal ‘will flood market with substandard beef'
Starmer's US trade deal ‘will flood market with substandard beef'

Telegraph

time09-05-2025

  • Business
  • Telegraph

Starmer's US trade deal ‘will flood market with substandard beef'

Britain's trade deal with the US will flood the market with substandard beef, farming campaigners have warned. The UK and US will cut taxes on beef imports and exports as part of the agreement announced on Thursday. Steve Reed, the Environment Secretary, has insisted there will be no watering down of food standards, with imports of hormone-treated beef or chlorinated chicken remaining illegal. But Liz Webster, the founder of the group Save British Farming, claimed low-quality beef could still enter the UK because the country's borders are not strong enough to keep it out. 'It's all very well from packaging up the details and saying, 'Oh, it's fine we will only give you the good stuff.' There is no mechanism to ensure that that happens,' she said. 'We've already got a lot of substandard food coming in here, because our borders are as good as a chocolate teapot, and there is no mechanism in America to filter out produce.' Tom Bradshaw, the president of the National Farmers Union, stressed the importance of strong standards on American food imports. 'In any trade deal with the US, ministers must uphold their commitments and ensure that food that would be illegal to produce here from a food safety, animal welfare or environmental perspective is not granted access to our market,' he said on Wednesday, before the deal was announced. After its announcement, he praised the Government for maintaining high food standards and securing access to the US market for British beef farmers. He said: 'We appreciate the Government's efforts in listening to our concerns, particularly around maintaining high standards, protecting sensitive agricultural sectors and securing reciprocal access for beef. 'For several years, we've campaigned with the UK's agricultural attachés in Washington for market access for British beef, a product globally respected for its quality and strong environmental credentials. 'These efforts have contributed to enabling the UK government to secure ring-fenced access for British beef exports to the US.' The deal on agriculture gives British farmers a tariff-free quota for 13,000 metric tonnes of beef exports – equivalent to 52 million steaks. US tariffs on British beef typically vary between 4 per cent and 26 per cent depending on the type and quality of cut, according to the World Trade Organisation. Britain's tariffs on American beef stand at up to 20 per cent. The UK's beef farming industry was worth an estimated £3.9 billion in 2024, while the US beef industry was valued at £81.52 billion. One beef farmer called on the Government to be stringent on food imports from America. Ian McCubbine a Surrey-based farmer, told BBC Radio 4's Today programme: 'I think that we have to be careful that we are stringent about food standards. 'Our beef, in fact, our whole food chain is globally reckoned to be the best quality of everything. And I'm slightly concerned that the US want to put stuff into us which is going to be lower quality.' He added: 'I know I hear all the stuff that's going to be stringently looked at and stuff like that, but sometimes the devil is in the details.' He said the Government had to be 'strong' about standards, adding: 'We've spent probably the last 50 years building an industry that is strong on environmental gain, is strong on animal welfare. 'We stopped our grocery gross hormones, probably 35-40 years ago.' He added the main problem was not knowing what was being given to livestock in America. 'A Texas feedlot that's 19-miles long, how do we know what they're putting in? We just don't know. We just don't know that.' But writing for The Telegraph, Mr Reed said: 'I have always been clear: no hormone-treated beef, no chlorinated chicken. 'As promised, these products remain illegal in the UK. That will not change,' he said. 'But that isn't all. For the first time ever, this Labour Government has secured exclusive access for UK beef farmers to the US market. 'That means there is a major opportunity to increase exports to the world's largest consumer market where our high-quality beef products are in demand. 'Only very few other countries enjoy this level of access.' On Friday, Labour's chief secretary to the Treasury insisted that the US-UK trade deal will not open the door to hormone-treated beef imports into Britain. Darren Jones said the Government's rules on food standards 'have not changed and they will not change'. He told the Today programme: 'Our food standards have been protected. They have not changed and they will not change. 'What that means of course is that companies, whether in the United States or in other parts of the world, know that because of those food production standards if they try to import hormone-treated meat, for example, that that is in breach of the law, there are checks on these products at the border and if people are in breach of the law there will be consequences for that.' No hormone-treated beef or chlorinated chicken on British soil By Steve Reed, the Environment Secretary This Government will always act in the national interest to protect British businesses and jobs across the economy. Thousands of jobs have been saved by the groundbreaking deal with the US. As the Prime Minister said, it is fitting that we took this step to deepen our ties with America 80 years after VE Day. It's the second major trade announcement in a week – after the India Free Trade Agreement on Tuesday – this historic agreement with the US has cut tariffs for some of the UK's most vital industries. UK carmakers and steelworkers will all feel the benefit, as lower tariffs translate into lower costs. The deal we signed on Thursday will also protect British farmers and uphold our high animal welfare and environmental standards. This Labour Government will always act in the national interest to protect Britain's farmers and secure our food security. The Tories sold our farmers down the river with their dodgy trade deals. As the Secretary of State for Environment, Food and Rural Affairs, I have always been clear: no hormone-treated beef, no chlorinated chicken. As promised, these products remain illegal in the UK. That will not change. Compare this approach to Nigel Farage who has threatened to betray our farmers, allowing chicken washed in chlorine and reared in the most appalling conditions to flood the UK market, which could put British producers out of business. But that isn't all. For the first time ever, this Government has secured exclusive access for UK beef farmers to the US market. That means there is a major opportunity to increase exports to the world's largest consumer market where our high-quality beef products are in demand. Only very few other countries enjoy this level of access. All this comes alongside the India trade deal, which is a major boost for our world-class food and drink industry with lamb, salmon, whisky and gin benefiting from lower tariffs. These deals are another step on the road to a more profitable farming sector. And our support for our farmers and growers is steadfast, with £5 billion being invested into sustainable food production, and a New Deal for farmers backing British produce in the public sector too. This Government has a Plan for Change that will growth the economy, and our trade deals show are we are delivering for Britain.

US-UK trade deal live: Trump to announce ‘comprehensive' agreement today
US-UK trade deal live: Trump to announce ‘comprehensive' agreement today

Times

time08-05-2025

  • Business
  • Times

US-UK trade deal live: Trump to announce ‘comprehensive' agreement today

Before her first meeting with her US counterpart in Washington at the end of April, Rachel Reeves said the UK would not be negotiating lower food or car standards. The White House wanted Britain to relax import rules and lower tariffs on American cars from 10 per cent to 2.5 per cent. The chancellor said the White House 'respected' that the UK would not be relaxing its food standards to allow US hormone-treated beef or chlorinated chicken into the UK. 'We are not going to be relaxing our food standards. We've been clear with the US and they respect that and understand that. 'I've always been really clear that I believe in free trade. I think it also needs to be fair trade and that's where the US does have an important point around some of the global imbalances that have built up in the global economy. The UK is not part of that problem. We're not a country that runs a large trade surplus with the US.' • Read in full: Reeves rules out chlorinated chicken on eve of US trade talks Trump has said on Truth Social that the deal with the UK is 'a full and comprehensive one'. He wrote it would 'cement the relationship between the United States and the United Kingdom for many years to come'. The US president added: 'Because of our long-time history and allegiance together, it is a great honour to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!' President Trump appears to have confirmed the announcement of a UK-US trade deal this afternoon. In a post on his Truth Social platform, he wrote: 'This should be a very big and exciting day for the United States of America and the United Kingdom. Press Conference at The Oval Office, 10A.M. Thank you!' America's trade deficit widened to a record high in March as businesses boosted imports of goods before the introduction of tariffs, dragging gross domestic product into negative terrain in the first quarter for the first time in three years. The trade gap jumped 14.0 per cent to a record $140.5 billion from a revised $123.2 billion in February, according to the Department of Commerce's Bureau of Economic Analysis. Economists had forecast the trade deficit rising to $137.0 billion from the previously reported $122.7 billion in February. • Read in full: American businesses rush to import goods before Trump's tariffs take effect Britain had a surplus in its goods trade with the US of about £2.2 billion, according to the Office for National Statistics. However, Washington's statistics agency found that the US had a $11.9 billion (£9 billion) surplus in its goods trade with the UK. In 2023, the US was the UK's largest single trading partner for services in both directions, and the largest export partner for goods. In total, the UK exported £186 billion worth of goods and services to the US. By far the biggest goods sector is machinery and transport, with £11.6 billion of mechanical machinery like cranes and bulldozers exported to the US last year. The day before the UK-US deal announcement, Labour publicly confirmed for the first time that it is pursuing a youth mobility scheme with the European Union. The government previously denied plans for a scheme to allow young people to study and work on the continent — and vice versa — but Nick Thomas-Symonds, the Europe minister, has now said that 'a smart, controlled youth mobility scheme would of course have benefits for our young people'. Britain already has youth mobility schemes with several countries including Australia, Canada and Japan. Thomas-Symonds told the Financial Times that ministers 'will consider sensible EU proposals in this space'. • Read in full: A 'one in, one out' approach aims to address migration concerns By Aubrey Allegretti Sir Keir Starmer views it as a moment of vindication. For months the prime minister has faced intense criticism — including from his own benches — because of his approach to President Trump. Where other world leaders have gone studs up, confronting the US president over Ukraine and global tariffs, Starmer has opted to take the diplomatic route. Flattery and offers of friendship have been very much the order of the day. Shortly after 1am on Thursday, while the prime minister and most of his team were asleep, Trump announced to the world that he was poised to announce a 'MAJOR TRADE DEAL' with 'A BIG, AND HIGHLY RESPECTED, COUNTRY'. That country turned out to be Britain. • Read in full: The devil will be in the detail of what concessions have been made MPs will get the chance to ask about the economic deal with Washington later today. An urgent question has been granted to Andrew Griffith, the shadow business secretary, scheduled for about 10.30am. It will be a chance for MPs to quiz a minister on the negotiations. If ministers decide to, they could instead deliver a statement to parliament instead — meaning timings are subject to change. Sir Keir Starmer, in a speech at the London Defence Conference at King's College, said the US was 'an indispensable ally'. He added: 'As you know, talks with the US have been ongoing. You'll hear more from me about that later today.' President Trump has said he plans to announce pharmaceutical tariffs 'over the next two weeks' as he steps up his efforts to return supply chains and production of critical industries to the United States. Trump started an investigation into the national security implications of pharma imports on April 1, seen as the precursor for protectionist policies designed to pressure global producers to set up in the US. Import charges will have a particular impact on companies based in Britain and Ireland, which have large trade surpluses with the US of the kind that Trump is determined to eradicate. Pharmaceuticals are one of the UK's top exports to the US, worth £6.5 billion last year. • Read in full: Attempts to move production to US could affect companies in Britain and Ireland American and Chinese officials will finally hold trade talks later this week, a first attempt to limit the tariff war launched by President Trump on his 'liberation day' on April 2. In a co-ordinated announcement, spokespeople for the two governments said Scott Bessent, the US treasury secretary, Jamieson Greer, the trade representative, and He Lifeng, the Chinese vice-premier, would arrive in Switzerland on Friday for talks on Saturday and Sunday. 'I look forward to productive talks as we work towards rebalancing the international economic system towards better serving the interests of the US,' Bessent said in a statement on Tuesday evening. • Read in full: US treasury secretary the Chinese vice-premier will meet in Switzerland A US-UK trade deal would be 'another Brexit benefit', Andrew Griffith, the shadow trade secretary, said. Responding to reports of an announcement this afternoon, the Conservative MP said in a post on X: 'A comprehensive UK-US trade deal would be welcome and another Brexit benefit. We will of course scrutinise the detail of any deal — which should first be announced to parliament.' Griffiths also took aim at Ed Miliband, the energy and net zero secretary, and said: 'Restoring growth to the UK also requires reversing Labour's attacks on business and cutting 'Red Ed's' high energy costs.' Ministers are understandably keen to laud the benefits of their trade deal with India but so far details are thin on the ground. No text of the agreement has been published and material in the public domain is focused on what each side wants to emphasise — so what are the crucial questions that remain unanswered? • Read in full: Several issues need clarification, including its impact on immigration MPs should be given a vote on any UK-US trade deal so the agreement can be 'properly scrutinised', the Liberal Democrats said. Daisy Cooper, the deputy leader, said: 'A good trade deal with the US could bring huge benefits, but Liberal Democrats are deeply concerned that it may include measures that threaten our NHS, undermine our farmers or give tax cuts to US tech billionaires. 'If the government is confident the agreement it has negotiated with Trump is in Britain's national interest, it should not be afraid to bring it before MPs.' Britain's trade deal with India will cost the Treasury about £200 million a year in lost taxes and make it cheaper for Indian firms to bring workers to the UK, an internal Treasury analysis concluded. Sir Keir Starmer defended the deal and dismissed claims by the Conservatives that the agreement would undercut British workers as 'incoherent nonsense'. However, sources said that an impact assessment of the deal, carried out under the last government, found that excluding Indian workers sent to Britain by their companies from national insurance payments for three years would see tax revenues fall by up to £200 million a year. • Read in full: Impact assessment found national insurance concessions would come at considerable cost The United States is by the far UK's largest trading partner. According to data released by the Office for National Statistics (ONS) on April 25, in 2024, the UK purchased £57.1 billion worth of goods from America and it sold £59.3 billion of products to the country, leaving the trading relationship between two countries broadly in balance. Germany is the second biggest purchaser of UK goods, followed by the Netherlands and the Republic of Ireland. According to the ONS, of the nearly £60 billion of goods exported to America from the UK last year, machinery and transport equipment represented £29.1 billion of that total, by far the category with the highest value of US sales. The statistics showed that sales of mechanical power generators, which includes products such as turbines and internal combustion engines for cars, reached £4.6 billion last year. • Read in full: Car manufacturing and the steel sector remain exposed to Trump's tariffs The details of the UK-US trade deal remain unclear, and it may be that the announcement will only set up a framework before more negotiations. During talks the UK government has sought relief for the car industry, the food and drink sectors and the pharmaceutical and steel industries. It is believed that the White House has demanded lowering UK tariffs on American cars and agricultural products, as well as removing taxes on US tech firms. John Healey, the defence secretary, refused to comment on reports of a UK-US trade deal. 'Ministers like me have been keen to give the negotiations the space to get the best possible deal for the UK,' he told Times Radio. 'So, we just haven't been giving a running commentary on developments or timelines, so I'm not going to start now.' Sir Keir Starmer will provide an update on US trade talks 'later today', a Downing Street spokeswoman said. She added that the talks have been 'continuing at pace'. 'The prime minister will always act in Britain's national interest — for workers, for business, for families,' the spokeswoman said. 'The United States is an indispensable ally for both our economic and national security. Talks on a deal between our countries have been continuing at pace and the prime minister will update later today.' President Trump trailed the deal with a post on his Truth Social platform on Wednesday night. He said that the announcement would be made at a 'big news conference' at the White House at 3pm UK time (10am in the US). Trump did not confirm it concerned Britain but wrote that it was 'a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY'. He added that it was 'THE FIRST OF MANY!!!' The president has previously claimed the US was close to reaching deals with Japan, South Korea and Vietnam. President Trump is expected to confirm the UK-US trade deal later on Thursday afternoon. The agreement would be the first deal reached since Trump announced global tariffs last month on what he called 'Liberation Day'. Britain was hit with a 10 per cent overall tariff — the lowest level imposed — as well as a general 25 per cent tariff on steel, aluminium and cars. Talks between the US and UK have been intensifying over recent months. Sir Keir Starmer discussed the possible deal when he met the US president at the White House in February. Rachel Reeves, the chancellor, met with the US Treasury secretary Scott Bessent in April, and said that the government had been 'working flat out' to get a deal over the line. It come after the UK's announcement of a trade deal with India on Tuesday.

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