Latest news with #tradepact
The Guardian
22-05-2025
- Business
- The Guardian
Government considers sale of Brexit border checkpoint in Kent
The UK government is reportedly considering selling a post-Brexit border check facility in Kent that could fall out of use as a result of this week's trade pact with the EU. The site, based in Sevington, Ashford, was erected in 2021 with capacity for 1,300 lorries that were expected to face extra checks on plants and animal goods, including dairy and meat, entering and leaving Britain after Brexit. However, the deal between the UK and EU struck earlier this week is due to remove the need for routine health and veterinary certification on the import and export of farm products ranging from fresh meat and dairy products to vegetables, timber, wool and leather. The government is now on the hunt for a company willing to buy or repurpose the Sevington border control point. Ministers are said to have approached Eurotunnel directly, according to the Financial Times. The Port of Dover could also be in the running, having been in discussions with the government for years about the site. The Port of Dover chief executive, Doug Bannister, welcomed the UK government's deal with the EU. 'Clearly there is a lot of detail to work through on how that's to be implemented and we're keen to continue our discussions with government for what this means for the BCP [border control post] at Sevington,' he said. The new UK-EU deal could end up making 41 BCPs, built by British port operators in the wake of Brexit, redundant. The Guardian revealed on Wednesday that a separate £25m post-Brexit BCP in Portsmouth may have to be demolished as a result of the government's deal with the EU. The hi-tech facility at the UK's second busiest cross-Channel terminal was one of more than 100 BCPs around the country built to government specifications to handle post-Brexit checks on imports subject to sanitary and phytosanitary checks. Boasting 14 lorry bays, Portsmouth's 8,000 sq metre (86,000 sq ft) border site was designed to allow inspection of low- and high-risk goods in air-lock quarantine zones to prevent cross-contamination. However, it has been severely underused since it began operating in April last year, after the previous Conservative government's changes to the post-Brexit import regime, which significantly reduced the number of tests required. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion An average of three checks have been carried out each day at Portsmouth's BCP in the 12 months since it began operating, compared with the 80 a day for which it was built. It is understood that a decision on whether to close BCPs will depend on the final details of the UK-EU deal. Some checks, including on live animals, are expected to continue. A government spokesperson said: 'This government committed in its manifesto to negotiate an agreement to prevent unnecessary border checks, remove red tape for businesses and help tackle the cost of food, which is what we have delivered on.' Eurotunnel declined to comment.
Globe and Mail
08-05-2025
- Business
- Globe and Mail
Canada won't sacrifice USMCA or vital sectors for quick deal with Trump: envoy
Ottawa isn't willing to rush a new trade pact or exchange the ratified and binding United States-Mexico-Canada Agreement for an executive handshake deal of the kind other countries are currently seeking from President Donald Trump, the Canadian ambassador to the United States says. Kirsten Hillman, speaking two days after Prime Minister Mark Carney's White House visit with Mr. Trump, said the federal government is eager to obtain the removal of U.S. tariffs on Canadian goods but not in a deal that sacrifices 'stability and a fair arrangement' for various industries. 'It would be great to do it as soon as possible, but not at the expense of getting a deal that is not going to bring us back to a place where we are able to maintain the strength of some of these core sectors that have been affected by these tariffs,' Ms. Hillman said. Canada's auto industry and steel and aluminum producers are among those industries hit by U.S. tariffs as Mr. Trump tries to force companies to shift manufacturing to the United States. Many countries are talking to Mr. Trump about trade deals after he imposed tariffs on most of the U.S.'s trading partners. He hit them in early April with what he called 'reciprocal tariffs' for what the White House says are foreign measures that treated U.S. companies unfairly. On Monday, the United States and Britain announced a limited trade deal that amounts to an executive agreement, as opposed to a binding pact ratified by the U.S. Senate, which in 2020 approved the USMCA. Trump announces U.S. trade deal with Britain, says 'final details' still to come Mr. Carney in late March announced that he and Mr. Trump had agreed that, after the April 28 Canadian election, the country's two leaders would begin 'comprehensive negotiations about a new economic and security relationship.' Business leaders and former diplomats have since argued against an overarching deal that links defence and trade because it could embolden the U.S. President to impose new tariffs if he is not happy with Canada's military expenditures. Ms. Hillman said she also sees discussions on security – including the illegal distribution of fentanyl − and matters such as critical minerals taking place separately from the renegotiation of the USCMA, which is already up for renewal in 2026. 'There are things that Canada and the United States will want to talk about between ourselves that relate more to how we operate as two countries,' she said. During his May 6 White House meeting with Mr. Carney, Mr. Trump said he's not sure that the trilateral USMCA is necessary any longer. He also, however, acknowledged that renegotiations are coming up and indicated the United States would participate. Ms. Hillman noted that Canada and the United States struck an arrangement on critical minerals during the first Trump presidency and now it's time to determine how the two countries can build on that. The Tuesday meeting at the White House yielded no measurable progress in ending Mr. Trump's trade war with Canada, but Mr. Carney avoided any sign of conflict with the mercurial President. The ambassador said she's not yet sure if USCMA renegotiations will start early as opposed to next year. More than a dozen countries have indicated that they plan trade talks with the United States in the wake of Mr. Trump's global tariff announcement. Asked whether this flurry of deal-making is a bad time for Canada to be seeking its own renegotiation, Ms. Hillman said she doesn't think so. 'I have enormous confidence in the Canadian ability to manage this relationship in all of its aspects,' she said. International trade lawyer Lawrence Herman said any deals that other countries sign with Mr. Trump will simply be a deal with the White House. 'None of these prospective Trump trade deals with other countries, unlike the USCMA, will be subject to congressional approval. Congress is out of the loop. That's the Trump method.' Ms. Hillman said Canada does not want to forgo a renewal of USCMA for an executive deal as other countries are seeking. 'It obviously is a very valuable legal framework for our trade with the United States and Mexico,' she said of USMCA. 'It's an important feature of our trade with the Americans. Foreign Affairs Minister Mélanie Joly said earlier this week that it appears Americans are souring on Mr. Trump's trade wars as prices for goods rise because of the tariffs that the President has imposed on imports. Canada's ambassador to the United States said there is mounting concern among U.S. businesses and communities about the impact of the tariffs but it's unclear whether it will help the Canadian government cut a deal with Mr. Trump. 'You're hearing a lot about that here in the United States right now: the cost of everyday items, Americans suffering because they can't afford strollers or can't even find car seats,' Ms. Hillman said. Timing is very important for momentum in trade talks, she said, but whether this pressure helps clinch a deal is unknowable right now. However, she said, 'Americans wanting resolution to some of these trade challenges and prices rising is very important for us.' The current U.S. levies on Canada that remain in effect include 25-per-cent tariffs on Canadian steel and aluminum, as well as a 25-per-cent tariff on Canadian-made vehicles, which applies only to the non-U.S. content in those cars and light trucks. There is also a 25-per-cent tariff – which drops to 10 per cent on critical minerals, energy and potash – for goods that don't comply with USMCA rules of origin. Canada responded with a series of countertariffs on tens of billions of dollars of U.S. imports. GM – Oshawa Vehicle: Chevrolet Silverado pick-up truck Annual production: 149,000 Employees: 3,000 hourly GM CAMI Assembly – Ingersoll Vehicle: Chevrolet BrightDrop electric delivery van, battery modules Employees: 1,300 hourly GM – St. Catharines Product: V-8 engines, transmissions Annual production: 149,000 Employees: 1,100 hourly Toyota – Cambridge and Woodstock Cambridge North products: Rav4, Lexus NXCambridge South products: Lexus RX 350, RX 350h, 500hWoodstock products: Rav 4, Rav 4 hybrid, Hino commercial trucks Annual production: 533,000 Employees: 8,500 Honda – Alliston Vehicles: Civic, CR-VAnnual production: 420,550 Employees: 4,200 Ford – Oakville Status: Closed for retooling. Expected to open in 2026 to make F250 pick-up trucksEmployees: 3,600 hourly Ford – Windsor Product: 7.3-litre V-8 enginesEmployees: 950 Ford – Essex Product: 5-litre V-8 enginesEmployees: 930 hourly Stellantis – Brampton Status: Closed for retooling end of 2023. Retooling paused in February, 2025. Expected to reopen by 2026 to make the Jeep 3,000 hourly Stellantis – Windsor Vehicles: Chrysler Pacifica, Chrysler Pacifica Hybrid, Chrysler Grand Caravan and electric Dodge Charger DaytonaAnnual production: 135,000 Employees: 3,600 hourly
Reuters
08-05-2025
- Automotive
- Reuters
Starmer hails second trade win in a week after UK's tariff deal with Trump
LONDON, May 8 (Reuters) - British Prime Minister Keir Starmer on Thursday secured a second trade pact in three days through a deal with U.S. President Donald Trump, claiming a much-needed political victory that removes a threat to some of the UK's must vulnerable industrial sectors. The U.S. agreed to lower tariffs on British cars and steel in return for Britain lowering tariffs on American beef and ethanol. Starmer said the deal was worth doing so that companies in the impacted sectors could make plans without worrying about tariffs of 25% or more, even though a broader deal to cut 10% baseline tariffs remain under discussion. "We would like to go further in relation to tariffs, but I think it's really important that we've been able to get this deal over the line now, because in that way, we've been able to protect and save and enhance jobs right here, right now," Starmer told reporters in London. The deal, which follows a landmark free trade agreement with India on Tuesday, was criticised by British opposition Conservative leader Kemi Badenoch but initially welcomed by Nigel Farage, the leader of the anti-immigration Reform Party who is close to Trump. "We have an American president who's pro-Britain and we can take this much further," said Farage, the pro-Brexit campaigner. "It's a Brexit benefit that we're able to do this ... this is a big step in the right direction." It was also largely welcomed by British businesses and industries such as auto manufacturing and steel production. They said it would provide some relief to companies impacted by the tariffs without giving too much away in return. The future of steel in Britain has been in doubt, with the government stepping in to keep blast furnaces running, while car manufacturers have also spoken up about the threats of tariffs to their business plans. The Society of Motor Manufacturers and Traders said the deal was "great news for industry" and would provide "much needed relief". The National Farmers Union largely welcomed it, thanking Starmer's government for not lowering agricultural standards in a deal that provides reciprocal market access for beef. Britain also said the U.S. would give it preferential treatment in considering other sectors it is exploring further tariffs on, such as pharmaceutical sectors - a key issue for AstraZeneca (AZN.L), opens new tab and GSK (GSK.L), opens new tab. Trump has also floated taxing the film sector to ensure more movies are made in Hollywood, but as there is no formal review as to whether tariffs will be imposed, the sector was not covered in Thursday's deal, officials said. Starmer has pinned his entire political strategy on economic growth. But with the British economy struggling to grow, the U.S tariffs had added to the pressure on his government. Last week, he suffered a bruising set of local election results, which were blamed on his government's unpopular decision to cut winter fuel or welfare payments.
Yahoo
08-05-2025
- Business
- Yahoo
Sterling, FTSE Rise on Trade-Deal Hopes Ahead of BOE
(Bloomberg) -- The pound and FTSE 100 stock-index futures rallied on a report that US President Donald Trump is expected to announce a trade pact between the US and UK later Thursday. Most Read from Bloomberg Trump teased the announcement of a 'major trade deal' in a social media post on Wednesday night, with subsequent reports indicating the country involved was the UK. Sterling gained as much as 0.5% to 1.3356 after the news before paring its advance. The report 'is a modest positive' for the pound, said Moh Siong Sim, FX strategist at Bank of Singapore. Dollar weakness has been the dominant theme in the currency market since Trump's April 2 tariff onslaught, amid concerns that the US may face economic recession and elevated price pressures. A Bloomberg gauge of the greenback has dropped about 4% in that time. Stocks have also felt the pressure; the benchmark FTSE 100 index has fallen 0.6% since then, while the Hang Seng China Enterprises Index is down more than 3%, and the S&P 500 is off 0.7%. FTSE futures also rallied on the trade-pact news, gaining as much as 0.9% amid hopes the agreement will alleviate US tariffs on the UK. 'Trump's proposed UK trade deal could provide a short-term boost to UK exporters' in areas like financials, autos and energy, said Kimmy Tong, global market and FX strategist at Everbright Securities International. She is positive on the FTSE 100, seeing the current valuation of 12.6 as 'undemanding' compared with 15.5 in 2018, during Trump's first trade war. Details around this deal might give an indication of what future deals with other countries might look like, said Mahjabeen Zaman, head of FX research at ANZ Banking Group Ltd. Market attention will now turn to the Bank of England's interest rate decision, which is due later Thursday ahead of Trump's press conference. 'For sterling, the BOE outcome is equally important,' said Zaman. The central bank is widely expected to cut interest rates by 25 basis points, and traders will be looking out for signals as to whether another rate cut may come as soon as next month, particularly given the hopes for the US-UK trade deal. 'We will be watching for monetary policy commentary on inflation and the future rate path to gauge whether risks are skewed toward a quicker easing cycle,' said Bank of Singapore's Sim. (Corrects day of week in first and second paragraphs.)
