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Tag: kemi badenoch

  • Tories would ban under-16s from social media

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    The Conservatives say they would ban under-16s from accessing social media platforms if they were in power, promising to follow the example of Australia, which was the first country to introduce the policy.

    Tory leader Kemi Badenoch said if her party was in government, smartphones would also be banned in schools.

    It has been a month since Australia’s ban on under-16s using major social media platforms came into force.

    The Conservatives say that if elected, they would follow suit to try to protect children’s mental health and education, and to stop them from viewing harmful content online.

    The party wants social media companies including TikTok and Snapchat to use age verification tools to prevent under-16s from accessing their platforms.

    The Tories say the scope of the policy would be kept under review.

    Badenoch said the age restriction would protect children while still giving adults choice.

    Separately the NASUWT teachers’ union also called for a similar ban (after taking evidence from its members).

    The government does not currently support the idea but insists it is taking action to ensure children are able to access only age-appropriate content online.

    Since July last year, platforms have been required to prevent young people from encountering harmful content relating to suicide, self-harm, eating disorders and pornography under the Online Safety Act.

    Enforced by Ofcom, the media regulator, platforms that do not comply with the legislation risk fines, jail time or, in very serious cases, a ban in the UK.

    This spring, the government is expected to issue guidance to parents around how long children under the age of five should spend watching TV or looking at computer screens.

    Education Secretary Bridget Phillipson said around 98% of children were watching screens on a daily basis by the age of two, with research suggesting that higher screen use in this age group was linked to poorer language development.

    The terms of reference for the national working group, which will be led by children’s commissioner for England Dame Rachel de Souza and Department for Education scientific adviser Professor Russell Viner, will be published on Monday.

    Parents, children and early years practitioners will all be involved in developing the guidance, which will be published in its first iteration in April.

    The education secretary has insisted it will be “shaped by parents, not dictated to them”.

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  • ‘China given a free pass’ and ‘Kemi: trust me’

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    'China given a free pass' and 'Kemi: trust me'

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  • Biden quietly shelves trade pact with UK before 2024 elections

    Biden quietly shelves trade pact with UK before 2024 elections

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    LONDON — President Joe Biden has quietly shelved plans for a “foundational” trade agreement with the U.K. ahead of the 2024 election — following Senate opposition and disagreements over the scope of the deal.

    A draft outline of the pact and its 11 proposed chapters, prepared by the United States Trade Representative’s (USTR) office earlier this year, indicated negotiations would begin before the end of 2023.

    But after facing multiple headwinds, the deal is not expected to go ahead, two people briefed by the British and U.S. governments respectively told POLITICO. Both were granted anonymity to speak on a sensitive matter.

    “I don’t think we’re going to see that re-emerge,” said one of the people briefed on the proposed negotiations. 

    The proposal’s timeline for talks — which would not consider market access or meet the World Trade Organization’s definition of a free trade agreement — set out that negotiations would wrap up ahead of elections in Britain and the U.S. next year.

    The deal was closer in substance to the U.S.-led Indo-Pacific Economic Framework for Prosperity (IPEF) — which tackles regulation and non-tariff barriers — than a full trade agreement.

    But last month IPEF talks fell apart after senior Democrats criticized the Biden administration’s negotiation of trade provisions that did not contain enforceable labor standards.

    The British government has long coveted a trade agreement with the U.S. as a significant post-Brexit prize.

    The draft was considered a road map to eventually securing a full-fledged, comprehensive deal. Business and Trade Secretary Kemi Badenoch pitched the IPEF-style deal in April during Biden’s visit to Belfast, Bloomberg reported, to reinvigorate talks first started under the Trump administration.

    Congressional oversight

    Key voices in the U.S. have expressed concern about the nature of a pact with the U.K.

    “Trade negotiations should be driven by substance,” said a spokesperson for Democratic Senator Ron Wyden, chairman of the powerful Senate Finance Committee, which provides congressional oversight for trade.

    “It is Senator Wyden’s view that the United States and United Kingdom should not make announcements until a deal that benefits Americans is achievable,” the spokesperson added.

    When POLITICO first reported on proposed talks in October, Wyden said it was “extremely disappointing” the Biden administration was attempting to proceed “with a ‘trade agreement’ that will neither benefit the American public, nor respect the role of Congress in international trade.”

    Wyden’s spokesperson said Congress “must have a clear role in approving any future trade agreements” and that the senior Democrat “believes it is important for USTR to be significantly more engaged with Congress on any future negotiations.”

    ‘The vibes were quite tough’

    USTR has gone back to Congress to ask for its input on a potential U.K. trade deal. But major outstanding issues between the U.S. and U.K. remain, including agriculture and whether any agreement would benefit American workers.

    In a recent meeting with U.S. diplomats “the vibes were quite tough,” said the second person briefed on the proposed negotiations cited earlier. “They just doubled down on ‘you guys really need to lean into the worker-centric trade policy’ and ‘put yourself in the shoes of somebody in Pennsylvania.’”

    The message, the person added, was “does this improve the lot of the farmers in Iowa? Does this help the U.S. economy? And if it doesn’t, they’re not going to do it.”

    The U.S. approach “seems to be very focused on labor standards, on environmental issues on these very worthy things,” said the first person briefed on the proposed negotiations quoted at the top of this story.

    Prime Minister Rishi Sunak’s Cabinet also pushed back on a chapter dealing with agriculture regulations in the draft after the British leader told a food summit earlier this year that he would not allow chemical washes or hormone-injected beef imports like those from the U.S. into Britain.

    Scottish ministers meanwhile complained they hadn’t been consulted. Agriculture regulations are a devolved issue in Scotland.

    In the meantime, the focus of the U.K.-U.S. trade relationship is predominantly on securing a critical minerals agreement that would allow British automotive firms to tap into electric vehicle rebates offered in the Biden administration’s Inflation Reduction Act.

    “The U.K. and U.S. are rapidly expanding co-operation on a range of vital economic and trade issues building on the Atlantic Declaration announced earlier this year,” said a U.K. government spokesperson.

    Some in the U.K. are taking a philosophical view on whether a wider ranging trade deal with the U.S. is really needed. Michael Mainelli, who, as lord mayor of the City of London, opened a new outpost for the U.K.’s powerhouse financial district in New York City on Monday said: “The trade has been going on fine without it. It might go a bit better with it.”

    The latest numbers show total two-way trade between the nations grew 23.8 percent in the year to the end of Q2 2023.

    But in the U.S. a trade deal with the U.K. is just “not that high on the list,” Mainelli said.

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    Graham Lanktree

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  • Rishi Sunak to sign UK-India trade deal without binding worker or environment pledges

    Rishi Sunak to sign UK-India trade deal without binding worker or environment pledges

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    LONDON — Prime Minister Rishi Sunak’s trade deal with India will not include legally enforceable commitments on labor rights or environmental standards, five people briefed on the text have told POLITICO.

    British businesses and unions now fear the deal’s already-finalized labor and environment chapters will undercut U.K. workers’ rights and efforts to combat climate change.

    Sunak’s government is racing to score a win with the booming South Asian economy ahead of the 2024 election. His plans for a return trip to India in October with the aim of sealing the pact are still on track.

    Sunak and Indian Prime Minister Narendra Modi added impetus to negotiations when they met on the sidelines of the G20 in New Delhi early this month. The 13th round of talks continues in London this week.

    Just days after Sunak’s meeting with Modi, Badenoch’s team shared the deal’s labor and environment chapters with businesses, unions and trade experts on a September 13 briefing call.

    Key enforceable dispute resolution powers which the U.K. set out to negotiate are missing from those chapters, said the five people briefed on the text. It means neither London nor New Delhi can hold the other to their climate, environmental and workers’ rights commitments.

    Businesses, unions and NGOs now fear the deal could undercut British firms because Indian firms operate to less stringent and expensive environmental and labor standards. Firms and unions say their access to the negotiations was curtailed earlier this year as talks progressed.

    “Industry also wants binding commitments — partly for greater certainty, partly because businesses are made up of people who themselves want to be properly treated and to avoid climate catastrophe,” said a senior British businessperson from the services sector briefed on the chapters. They were granted anonymity to speak candidly about the negotiations.

    “Suppression of trade unions, child labor and forced labor are all widespread in India,” said Rosa Crawford, trade lead at the Trades Union Congress (TUC) — the largest coalition of unions in Britain. “But the labor chapter that the U.K. government has negotiated cannot be used to clamp down on these abuses and could lead to more good jobs being offshored to exploitative jobs in India.”

    The Department for Business and Trade said it does not comment on live negotiations and that it will only sign a deal that benefits the U.K. and its economy.

    ‘Everyone was deeply unhappy’

    At the outset of the talks, the British government committed to negotiating enforceable labor and environment chapters as it laid out its strategic approach. “We remain committed to upholding our high environmental, labour, food safety and animal welfare standards in our trade agreement with India,” the government said in January 2022.

    Indian and British officials say the labor and environment chapters are now closed and are not up for discussion. The U.K.’s first post-Brexit trade pacts with Australia and New Zealand have dispute settlement mechanisms in both these chapters. Three people POLITICO spoke to for this piece said it was an achievement in itself that Britain was able to get such chapters in a deal with India.

    Businesses, unions and NGOs have all been concerned after Kemi Badenoch closed the key forums in February to carry out a required review of their activities | Dan Kitwood/Getty Images

    But, as the U.K.-India deal stands, if either country were to weaken its environmental standards or workers’ rights “the other party would not have recourse to initiate consultations on changes in laws,” said a person familiar with the content of the chapters. “There is no dispute settlement in the environment and labor chapters.”

    British firms and unions are also concerned that the pact the EU is negotiating with India has enforceable chapters “bound by sanctions in case the parties don’t comply,” the same person said. Those EU-India chapters are not yet finalized.

    British stakeholders “are totally up in arms,” said a former trade department official familiar with the briefing. “Everyone was deeply unhappy.”

    India has changed its labor laws to deprive workers of the right to strike. Over the past year several Indian states, including Karnataka, Tamil Nadu and Uttar Pradesh, have weakened their workers’ rights laws making 12-hour daily shifts and overnight shifts for women legal as Apple iPhone maker Foxconn sets up multiple semiconductor factories and assembly plants throughout India.  

    Adding enforceable chapters would only slow down negotiations, said an Indian government official. “If you put in too much of these things into a trade deal, then it delays the process.” The U.K. and India are already “bound by” their international commitments on labor and climate, they added.

    The deal “is dire for working people because trade unions were excluded from the trade talks,” said the TUC’s Crawford. Nearly three years ago, ministers pitched the idea of involving unions in 11 influential Trade Advisory Groups (TAGs) that gave input on ongoing trade negotiations.  

    Businesses, unions and NGOs have all been concerned after Britain’s trade chief Kemi Badenoch closed the key forums in February to carry out a required review of their activities. International Trade Minister Nigel Huddleston received officials’ recommendations to restructure the groups in mid-August. A final decision is expected before the end of the year.

    With 40-50 people on the U.K. government’s current briefing calls about the India trade deal there’s little businesses or unions can do to feed into negotiations. Officials can “only really be in transmit mode,” said a business representative familiar with the briefings.

    “What this means in real terms is that decisions are being made about the future of people’s livelihoods, people’s health, and the environment we all depend on without any input from those who will be impacted,” said Hannah Conway, trade and agriculture policy advisor at the NGO Transform Trade.

    “It’s crucial,” she said, “that the government addresses its democratic deficit on trade policy by undertaking meaningful consultation with civil society and businesses.”

    “It’s high time the government rethinks its approach,” said the TUC’s Crawford, “and includes unions in trade talks — that’s how you get trade deals that work for working people.”

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    Graham Lanktree

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  • Ron DeTedious: DeSantis underwhelms Britain’s business chiefs

    Ron DeTedious: DeSantis underwhelms Britain’s business chiefs

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    LONDON — He hopes to win the hearts and minds of devoted Donald Trump supporters ahead of next year’s U.S. election.

    But Republican presidential hopeful Ron DeSantis failed to impress British business chiefs at a high-profile London event Friday, in a tired performance described variously as “horrendous,” “low-wattage” and “like the end of an overseas trip.”

    The Florida governor, expected to launch his bid next month to challenge Trump as the Republican nominee for the 2024 presidential race, met with more than 50 representatives of major U.K. firms and business lobbying groups as a part of a four-country “trade mission” ending in London Friday.

    His trip was officially billed as an attempt to build Florida’s economic relationships with the U.K., Israel, South Korea and Japan, but it has been widely seen in Washington as a chance for DeSantis to present himself as a statesman on the world stage.

    For several of those present, however, the statesmanship was lacking.

    One U.K. business figure said DeSantis “looked bored” and “stared at his feet” as he met with titans of British industry in an event co-hosted by Lloyd’s of London — the world’s largest insurance marketplace.

    “He had been to five different countries in five days and he definitely looked spent, but his message wasn’t presidential,” they told POLITICO. “He was horrendous.”

    A second business figure who was in the room said it was a “low-wattage” performance and that “nobody in the room was left thinking, ‘this man’s going places’.”

    They said: “It felt really a bit like we were watching a state-level politician. I wouldn’t be surprised if [people in attendance] came out thinking ‘that’s not the guy’.”

    “There wasn’t any stardust.”

    A third person present at the event agreed “it felt like the end of an overseas trip — which it was,” but insisted DeSantis “came across well.” The best a fourth could muster was that DeSantis was “fine.”

    DeSantis also met with U.K. Foreign Secretary James Cleverly and Business and Trade Secretary Kemi Badenoch during a whistlestop tour of London, though Prime Minister Rishi Sunak avoided a bilateral with the right-wing governor.

    Sunak was at a Scottish Conservative Party conference Friday, which a No. 10 official said had been in his diary for a “long time.”

    DeSantis is trailing Trump in polling among Republican primary voters, but has attracted support among a number of establishment Republicans who see him as a less chaotic figure than the ex-president.

    The governor won a landslide re-election last year in what is traditionally a swing state, and has attracted praise from many Republicans for his “anti-woke” agenda and his commitment to tax cuts.

    A government official said Badenoch, a rising star in the Conservative Party, and DeSantis had a “fruitful” conversation and that the pair “got on well.”

    However, the pair did not discuss the prospect of a state-level economic Memorandum of Understanding between the U.K. and Florida, despite Britain’s efforts to sign similar arrangements with other U.S. states.

    A second official said Badenoch’s team “wanted to avoid talking about a Florida MoU” as others are being prioritized, and because of the difficult optics for a British government also dealing with Joe Biden’s White House on several trade-related issues.

    A Foreign Office spokesperson said Cleverly and DeSantis discussed “the close and important relationship between the U.K. and Florida.”

    “The meeting was an opportunity to strengthen ties with the … U.S. state, and support bilateral economic co-operation that is already worth more than £5 billion a year,” they said.

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    Stefan Boscia

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  • Trump who? Farage’s party cozies up to DeSantis as White House hopeful lands in UK

    Trump who? Farage’s party cozies up to DeSantis as White House hopeful lands in UK

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    LONDON — Nigel Farage’s new right-wing party Reform UK is making overtures to Donald Trump’s potential presidential rival Ron DeSantis as the Florida governor flies into Britain for high-level talks.

    DeSantis, who is expected to announce his bid for the 2024 Republican presidential candidacy in the coming weeks, will hold meetings with senior British ministers in London on Friday as a part of a four-country “trade mission” to promote Florida on the world stage.

    But also chasing a meet-up will be key allies of Farage, who is honorary president of Reform UK and who first met DeSantis at last year’s Conservative Political Action Conference (CPAC) in Florida.

    The pair have spoken about U.S. and European politics, despite Farage’s previous long-standing alliance with DeSantis’ arch-rival Donald Trump, who remains the frontrunner for the 2024 Republican nomination.

    Reform UK leader Richard Tice confirmed to POLITICO he was “working on” cultivating links with the Florida governor, who has become a popular figure among some British conservatives as a seemingly less chaotic right-wing alternative to Trump.

    “He’s shown himself to be a courageous, bold leader and that’s very interesting. For me, I think he is actually the one that the Democrats fear,” Tice said.

    “DeSantis doesn’t muck about — he just gets stuff done and tells it as it is, which is very contrary to what the Washington elite want him to say.”

    ‘Big supporter of Brexit’

    DeSantis will meet with British Foreign Secretary James Cleverly and Business and Trade Secretary Kemi Badenoch for talks in London on Friday.

    The 44-year-old is currently running second to Trump in polling among Republican primary voters, who will make their decision on a presidential candidate early next year. 

    DeSantis attracted praise from high-profile Republicans for winning a landslide re-election victory last year in what is traditionally a swing state, with many talking him up as the future — or DeFuture as Rupert Murdoch’s New York Post wrote — of the Republican Party.

    Trump has already begun a vicious campaign to discredit the controversial governor — who has stirred anger among America’s liberals for his “anti-woke” and anti-COVID lockdown policies — by calling him “Ron DeSanctimonious” and accusing him of being a part of a “globalist” elite.

    The governor said in an interview with The Times last month that he was a “big supporter of Brexit,” but that Britain’s ruling Conservative Party “hasn’t been as aggressive at fulfilling that vision as they should have been.”

    Ron DeSantis will hold meetings with senior British ministers in London | Anna Moneymaker/Getty Images

    Farage in turn showered praise on the governor via his GB News show, saying “it seems to me that Ron DeSantis very much has his finger on the pulse of U.K. politics.”  

    An ally of Farage told POLITICO that the Brexiteer highly rates DeSantis, but that he “could damage himself in a brutal fight against Trump.”

    “Nigel thinks that he will be American president at some point and that he’s done a great job in Florida,” the ally said. Farage himself declined to comment for this article.

    British TV presenter Piers Morgan, another former friend of Trump, interviewed DeSantis for TalkTV last month. He too has been quick to talk up the governor as the best possible candidate for the Republicans, despite his past alliance with Trump.

    Morgan told a Fox News programme that the Republican Party has a “straightforward choice.” He said: “Do you want more drama and chaos and baggage, or do you want someone who is fresh, young, nearly half Trump’s age, who doesn’t have the baggage and believes in doing government a different way?”

    A London-based lobbyist with ties to the DeSantis camp said many British political figures will be trying to cozy up to the Florida governor in the lead up to his likely presidential run.

    “It’s peak season for grifters,” they said. “A lot of people connected to the Republican Party will try to ride both horses.”

    They also said that DeSantis would “be smart” to try to raise money from British expats living in America — a path that was followed by Trump in 2016 and by former presidential candidate Mitt Romney in 2012.

    Make America … Florida?

    The U.K. will be the final stop on DeSantis’ four-country trade mission, following visits to Japan, South Korea and Israel.

    A DeSantis spokesperson said the trip would “build on economic relationships Florida has with each country,” but it is being seen by media pundits as a way for the governor to look presidential on the global stage.

    He is set to meet with Badenoch and then Cleverly tomorrow in separate bilateral meetings.

    DeSantis will also attend a business roundtable with Badenoch, a rising star in her own party and the bookmakers’ favorite to become next Conservative leader, being organized by the BritishAmericanBusiness lobby group.

    Farage had a long-standing alliance with DeSantis’ arch-rival Donald Trump, who remains the frontrunner for the 2024 Republican nomination | Jonathan Bachman/Getty Images

    British ministers will be eager to know the governor’s views on international trade, given U.S. President Joe Biden — who officially launched his own re-election campaign this week — refused to continue the post-Brexit U.K.-U.S. trade talks that began under the Trump administration.

    Leslie Vinjamuri, U.S. expert at the Chatham House think tank in London, said DeSantis will want the trip to show economic competence to a wider American audience.

    “It makes complete sense as a governor and a presidential hopeful that he would demonstrate his economic credentials. America is about the land of the free and the opportunity to succeed — and getting rich,” she said.

    “Having that very strong relationship and connectivity to the U.K. plays extremely well in the U.S. — it certainly plays well in Florida.”

    DeSantis’ view of the Russo-Ukraine war will also be scrutinized if and when he announces his presidential run, after he recently called the conflict a mere “territorial dispute.”

    The governor swiftly tried to walk back those comments following a bitter backlash — but also told Nikkei Asia this week that European countries must do far more to help Ukraine.

    “The Europeans really need to do more. I mean, this is their continent,” he said.

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    Stefan Boscia

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  • UK slams ‘protectionist’ Biden

    UK slams ‘protectionist’ Biden

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    LONDON — Joe Biden’s “protectionist” Inflation Reduction Act won’t help the U.S. counter the rise of China and could create a “single point of failure” in key supply chains, Britain’s trade chief Kemi Badenoch warned.

    Speaking at a POLITICO event Tuesday night, Badenoch — recently promoted to head up the U.K.’s new Department for Business and Trade — predicted the flagship law would not achieve its key aims, and insisted the U.K. is not sitting on the sidelines in the transatlantic tussle over the plan.

    The comments came just minutes after the U.S. ambassador to the U.K. mounted a spirited defense of the IRA at the same event.

    The Inflation Reduction Act offers billions in subsidies and tax credits to try and incentivize take-up of electric vehicles and build up green infrastructure. But European and British carmakers are particularly concerned about the impact on their own industries of massive help for U.S. firms.

    Speaking on Tuesday night, Badenoch said Britain — which has been lobbying against the plan but is not prepping its own subsidies — is “working very well with a group of like-minded countries who are worried about the Inflation Reduction Act.”

    “The EU is very worried and we’re working jointly with them on it,” she said. “It’s not just the EU doing stuff and we’re not in the room. Japan is worried. South Korea is worried. Switzerland is worried.”

    Many countries, Badenoch contended, are now “looking at what the U.S. is doing” with concern.

    “It is onshoring in a way that could actually create problems with the supply chain for everybody else,” she said.

    “And that will not have the impact that it wants to have when it’s looking at the economic challenge that China presents. So no, I don’t think it’s a good idea, not just because it’s protectionist. But it also creates a single point of failure in a different place, when actually what we want is diversification and strengthening of supply chains across the board.”

    Speaking earlier Tuesday night, U.S. Ambassador to the U.K. Jane Hartley argued that the plan could have major positive implications for countries beyond the U.S.

    “One of the things I would say is there’s going to be a huge amount of money, R&D — the technology is going to improve, the technology is going to be cheaper,” she said. “The technology is going to be used by everyone in the world — not just the U.S.”

    Hartley stressed that U.S. Treasury Secretary Janet Yellen is “looking pretty hard” at the act during its so-called comment period, when U.S. agencies take feedback on a plan. Both President Biden and U.S. Trade Secretary Katherine Tai had, she said, stressed that their country “didn’t do this to hurt our allies — we want to protect our allies.”

    CORRECTION: A previous version of this article misstated Janet Yellen’s job title. She is the treasury secretary.

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    Matt Honeycombe-Foster and Jack Blanchard

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  • Brexit Britain trapped in the middle as US and EU go to war on trade

    Brexit Britain trapped in the middle as US and EU go to war on trade

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    LONDON — Three years after leaving the EU to chart its own course, Britain finds itself caught between two economic behemoths in a brewing transatlantic trade war.

    In one corner sits the United States, whose Congress in August passed the Biden administration’s much-vaunted $369 billion program of green subsidies, part of the Inflation Reduction Act (IRA).

    In the opposing corner is the European Union, which fears Washington’s subsidy splurge will pull investment — particularly in electric vehicles — away from Europe, hitting carmakers hard.

    The EU is preparing its own retaliatory package of subsidies; Washington shows little sign of changing course. Fears of a trade war are growing fast.

    Now sitting squarely outside the ring, the U.K. can only look on with horror, and quietly ask Washington to soften the blow. But there are few signs the softly-softly approach is bearing fruit. Britain now risks being clobbered by both sides.

    “It’s not in the U.K.’s interest for the U.S. and EU to go down this route,” said Sam Lowe, a partner at Flint Global and expert in U.K. and EU trade policy. “Given the U.K.’s current economic position, it can’t really afford to engage in a subsidy war with both.” The British government has just unleashed a round of fiscal belt-tightening after a market rout, following months of political turmoil.

    For iconic British motor brands, the row over the Biden administration’s IRA comes with real costs.

    The U.S. is the second-largest destination for British-made vehicles after the EU, and the automotive sector is one of Britain’s top goods exporters.

    Manufacturers like Jaguar Land Rover have warned publicly about the “very serious challenges” posed by the new U.S. law and its plan for electric vehicle tax credits aimed at boosting American industry.

    Kemi on the case

    U.K. Trade Secretary Kemi Badenoch has for months been privately urging top U.S. officials to soften the impact of the electric vehicle subsidies on Britain by carving out exemptions, U.K. officials said.

    When Commerce Secretary Gina Raimondo visited London in early October, Badenoch pushed her to rethink the strategy. The U.K. trade chief brought that same message to Washington in a series of private meetings earlier this month, including at a sit-down with Deputy Treasury Secretary Wally Adeyemo.

    Badenoch has “raised this issue on many levels,” an official from the U.K.’s Department for International Trade said, citing conversations with U.S. Ambassador to Britain Jane Hartley, with Secretary Raimondo, “and with members of the Biden administration and senior representatives of both parties.”

    The Cabinet minister has also spoken out in public, telling the pro-free market Cato Institute in Washington earlier this month that “the substantial new tax credits for electric cars not only bar vehicles made in the U.K. from the U.S. market, but also affect vehicles made in the U.S. by U.K. manufacturers.”

    U.S. Secretary of Commerce Gina Raimondo | Mandel Ngan/AFP via Getty Images

    Badenoch’s comments echo concerns raised by both British automotive lobby group the Society of Motor Manufacturers and Traders (SMMT), and by Jaguar Land Rover, in comments filed with the U.S. Treasury Department.

    The SMMT warned that Biden’s green vehicle package has several “elements of concern that risk creating an uneven competitive environment, with U.K.-based manufacturers and suppliers potentially penalised.” The lobby group is taking aim at the credit scheme’s requirement for green vehicles to be built in North America, with significant subsidies available only if critical minerals are sourced from the U.S. or a U.S. ally.

    In response to Washington’s plans, the EU is preparing what could amount to billions in subsidies for its own industries hit by the U.S. law, which also offers tax breaks to boost American green businesses such as solar panel manufacturers. Britain faces being squeezed in both markets, while lacking any say in whatever response Brussels decides.

    Protectionism that impacts like-minded allies “isn’t the answer to the geopolitical challenges we face,” the British trade department official warned, adding “there is a serious risk” the law disrupts “vital” global supply chains of batteries and electric vehicles.

    The conversations Badenoch had this month in Washington were “reassuring,” the official added. “But it’s for them to address and find solutions.”

    ‘Ton of work to do’

    Yet others believe Badenoch will have a hard time getting her colleagues in the U.S. — now cooling on a much-touted bilateral trade deal — to take action. “The U.S. is minimally focused on how any of their policies are going to impact the U.K.,” admitted a U.S.-based representative of a major business group.

    While Britain and the U.S. are “very close allies”, they added, those in Washington “just don’t really view the U.K. as an interesting trade partner and market right now.” The U.S. is more focused, they noted, on pushing back against China, meaning Badenoch has “a ton of work to do” getting the administration to soften the IRA.

    Nevertheless the U.S. is still working out how its law will actually be implemented, the business figure said, and is assembling a working group on how the IRA impacts trade allies. This has the potential, they added, to “alleviate a lot of the concerns coming out of the U.K.”

    Late Tuesday evening, the SMMT called on the British government to provide greater domestic support for the sector as it prepares to ramp up its own electric vehicle production. The group wants an extension past April on domestic support for firms’ energy costs; a boost to government investment in green energy sources; and a speedier national rollout of charging infrastructure and staff training.

    In the meantime, Britain’s options appear limited.

    Newly manufactured Land Rover and Range Rover vehicles parked and waiting to be loaded for export | Paul Ellis/AFP via Getty Images

    The U.K. “could consider legal action” and haul the U.S. before the World Trade Organization or challenge the EU through provisions in the post-Brexit Trade and Cooperation Agreement, said Lowe of consultancy Flint. “But — to be blunt — neither of them care what we have to say.”

    Anna Jerzewska, a trade advisor and associate fellow at the UK Trade Policy Observatory, suggested pressing ahead “with your own domestic policy and efforts to support strategic industries is perhaps more important” than complaining about foreign subsidy schemes. But she noted that after a “chaotic” political period, Britain is “likely to take longer to respond to external changes and challenges.”

    And in truth, Britain “can’t afford to out-subsidize the U.S. and EU,” said David Henig, a trade expert with the European Centre For International Political Economy think tank.

    Outside the EU, Britain could work to rally allies such as Japan and South Korea who are also unhappy with the Biden administration’s protectionist measures, he noted. “But I don’t think we’re in that position,” Henig said, as it would take a concerted diplomatic effort, and the U.K.’s automotive sector would “have to be well positioned” in the first place, not struggling as it is. He predicted London’s lobbying in Washington and Brussels is “not going to get anywhere.”

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    Graham Lanktree

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  • Rishi Sunak’s ‘keep calm and carry on’ Cabinet

    Rishi Sunak’s ‘keep calm and carry on’ Cabinet

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    LONDON — If his key appointments are any indication, the Rishi Sunak era in Britain could actually be … kind of dull.

    The new U.K. leader reappointed existing ministers, brought back old hands and largely kept critics on side as he sought to reassure nervous markets, allies and enemies that the U.K. is no longer a hotbed of chaos.

    But the prime minister did, at least, have room to take revenge on a number of his most vocal detractors, and refused to offer any kind of promotion to his defeated leadership rival, Penny Mordaunt.

    Sunak entered No. 10 Downing Street Tuesday with a promise to “fix” the “mistakes” made by his predecessor Liz Truss, after her radical economic prospectus spooked financial markets and helped jack up U.K. borrowing costs — swiftly bringing down her government amid bitter Tory recriminations and sparking a second Tory leadership race in two months.

    Emerging from the wreckage of the Conservative Party, Sunak had pledged to put politics aside and “build a government that represents the very best traditions of my party.”

    Nothing to see here

    The biggest news of the reshuffle was that there wasn’t much news. Multiple figures who served under Sunak’s predecessor Liz Truss, including some who backed his rival Boris Johnson in the latest Conservative leadership race, kept their posts or were moved to other senior roles.

    Sunak’s most important appointment was to keep Jeremy Hunt in post as chancellor, sticking by a Cabinet veteran who Truss had brought in from the cold just two weeks earlier to rip up her failed economic agenda.

    James Cleverly was kept on as foreign secretary, while Ben Wallace remained as defense secretary — keeping two key ministries tasked with shaping Britain’s foreign policy intact. Chris Heaton-Harris stayed on as Northern Ireland secretary, while Nadhim Zahawi was moved from the Cabinet Office to become the Conservative Party chairman. All four men had backed Johnson in the leadership contest last week, leaving fellow Boris supporters in the party relieved.

    “At this early stage of the reshuffle it looks as if Rishi is aiming to unite the party rather than divide it,” said Tory MP and Johnson ally Michael Fabricant. “Perhaps one of the mistakes Liz Truss made was to pack the Cabinet only with her supporters. That always creates a volatile situation.”

    In an eyebrow-raising move, Suella Braverman, a darling of the party’s right who made her own bid for the leadership earlier this year, returned as home secretary less than a week after being fired over a sensitive information leak. Her reappointment looked like a debt being repaid following her unexpected backing of Sunak at the weekend.

    Trade Secretary Kemi Badenoch and Culture Secretary Michelle Donelan, both Truss picks over the summer, kept their jobs too.

    One Cabinet minister who did not back Sunak in either leadership race said the appointments were clearly a bid for unity: “He has put people in positions with a track record of delivery.”

    Senior figures from other wings of the party were impressed too. “The new prime minister is clearly serious about including people from all sides of the party in his new Cabinet,” said Nicky Morgan, a former chair of the centrist One Nation Conservatives grouping in parliament and now a member of the House of Lords. “This is a very encouraging start to his term.”

    Soft revenge

    Others key allies of Sunak’s opponents were handed demotions, but allowed to remain in Sunak’s top team.

    Thérèse Coffey, a close friend of Truss who served as her deputy prime minister and health secretary, was demoted to the environment, food and farming brief. Alok Sharma, who backed Johnson in the second race, kept his job overseeing the COP climate summits, but will no longer attend Cabinet — a clear step down.

    But it was the treatment of Mordaunt, the last candidate standing against Sunak in the latest leadership race, that most ruffled feathers. She kept her relatively junior Cabinet-attending job as leader of the House of Commons, a decision seen in Westminster as a snub given widespread expectations that she was due a major promotion.

    One former Cabinet minister argued the failure to promote Mordaunt looked like “an act of revenge, or small-mindedness.” Mordaunt had refused to drop out of the latest leadership race until it was clear she did not have sufficient nominations from fellow MPs to make the next round. 

    Leader of the House Penny Mordaunt leaves No. 10 Downing Street following Prime Minister Rishi Sunak’s cabinet reshuffle | Leon Neal/Getty Images

    Yet some argued the very act of keeping her in post was in itself an olive branch, while one person familiar with the discussions on her appointment said she had been offered a different role, but refused it. One of Mordaunt’s allies insisted she was pleased to keep her existing brief.

    A Downing Street official insisted: “This Cabinet brings the talents of the party together. It reflects a unified party and a Cabinet with significant experience, ensuring that at this uncertain time there is continuity at the heart of government.”

    But there were plenty of rewards too for key Sunak supporters. Close allies Oliver Dowden, Michael Gove and Steve Barclay were handed roles in the Cabinet Office, communities department and health department respectively, just weeks after Truss made clear they had no place in her administration.

    Simon Hart was made chief whip, while Gillian Keegan was promoted to the Cabinet for the first time as education secretary and Grant Shapps was moved from his week-long stint heading up the Home Office (to replace the sacked Braverman) to the business department. 

    To make space for the new appointments, Sunak allowed himself a few ruthless sackings — although he did permit Cabinet ministers to technically resign to spare their blushes.

    Ministers seen as close to Johnson, including Brandon Lewis and Kit Malthouse, were fired, as was Robert Buckland, who supported Sunak in the first leadership race only to shamelessly switch to Truss when it became clear she would win.

    Jacob Rees-Mogg, one of Sunak’s most vocal critics and a cheerleader for Johnson, was also dispensed with, as well as top Truss lieutenants Ranil Jayawarenda and Simon Clarke. Rees-Mogg had once branded Sunak a “socialist” — although he hastily recanted that criticism Tuesday morning as the new PM picked his top team.

    Having told the Tories at the weekend they must “Back Boris” or go “bust”, it was not enough to save him from his fate.

    An earlier version of this story included an inaccurate previous ministerial brief.

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    Emilio Casalicchio

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  • Boris Johnson vs Rishi Sunak: The mother of all leadership battles

    Boris Johnson vs Rishi Sunak: The mother of all leadership battles

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    LONDON — They were once close allies — two Tory Brexiteers working at the very top of government to steer Britain through the pandemic.

    They then became the deadliest of enemies, when the apprentice knifed his master in the back and embarked on a fruitless campaign to pinch his job.

    Now the poisonous rivalry between Boris Johnson and Rishi Sunak has reached its dramatic third act — an extraordinary struggle to take back control of the Conservative Party following the disaster of Liz Truss’ brief tenure.

    “Rishi is the acceptable face of the Conservatives,” said one party insider who knows both men well, “whereas Boris has a monstrous appetite and a huge ego — he wouldn’t have got where he is without it.” 

    For Sunak, victory would mark an improbable comeback, just six weeks after he was roundly defeated in the last leadership contest.

    Yet for Johnson, the comeback would be even more unlikely. No ousted prime minister has returned to No. 10 in nearly 40 years, since Labour’s Harold Wilson in 1974. Nobody since Bonar Law in the 1920s has led the Conservative Party twice.

    The leadership contest has been truncated to last just a single week this time, and nominees must secure the backing of at least 100 Tory MPs by Monday afternoon to go forward to a final ballot of the party grassroots. 

    MPs have begun declaring their allegiances already, with Sunak currently in the lead and Johnson in second place. For both men, there is all to play for ahead of Monday’s 2 p.m. deadline.

    The love I lost

    A final head-to-head dual between Johnson and Sunak would be a gripping moment even by the standards of a modern-day Conservative Party which seems endlessly embroiled in psychodrama.

    It was Johnson who gave Sunak his big break, promoting him first to a senior ministerial role in the Treasury and then, six months later, making him chancellor, the second-biggest job in government.

    At first, the pair seemed to work well, with Johnson’s allies heaping praise on his young protege as the pair battled their way through the COVID pandemic which struck just a few weeks after Sunak was appointed chancellor in early 2020.

    The PM and chancellor initially had a joint unit of advisers, but it gradually became dominated by Sunak’s people and the pair increasingly found themselves at loggerheads over tax-and-spend decisions. Sunak tacked to a more traditional Conservative view of fiscal responsibility and Johnson was comfortable with higher spending and borrowing. 

    “There had been mounting tension between the PM and Rishi for a while,” said one member of Johnson’s No. 10 team. “[Johnson] wanted a more adventurous, ambitious economic policy.”

    By the time Sunak resigned, relations between the two men had deteriorated bitterly. Johnson’s team had long believed Sunak was plotting to oust their boss, and the same former aide claimed Sunak had not even phoned Johnson to warn him he was quitting.

    During the summer leadership contest Sunak frequently distanced himself from his old boss, while allies of Johnson made clear they were prepared to stop Sunak’s march to No. 10 at any cost.

    If they do end up as the final two contenders, nobody in the party will be able to say they are not getting a genuine choice. 

    Grassroots’ choice

    Many of those who backed Sunak last time, largely from the moderate or centrist wing of the party, have immediately flocked back to his side. A few right-wingers, too — fed up of the Johnson circus — have joined them. 

    For his part, Johnson has garnered support mainly from loyalist former ministers, along with a cohort of ardent Brexiteers. But he has already demonstrated he still has the power to attract party big hitters, despite his checkered record in office. 

    Defense Secretary Ben Wallace, well-regarded for his handling of the Ukraine invasion, ruled himself out of the race Friday and said he was inclined to support Johnson as he “wins elections.” Ben Houchen, the Tees Valley mayor seen as a quasi-spokesman for the post-industrial areas in northern England won by the Tories in 2019, also switched allegiance to Johnson Friday, having previously backed Sunak in his head-to-head with Truss. 

    Crucially, Johnson has another weapon in his armory, in the form of thousands of grassroots activists who believe he was wrongfully defenestrated in the summer and could yet rise again to save the party. If Johnson can make it onto the members’ ballot, he would fancy his chances against Sunak — or any of his other rivals — in a final head-to-head.

    “It’s very similar to the Liz vibes of ‘we’re gonna win, it’s gonna be amazing’ and sunlit uplands,” said one Tory activist. “They all still think that absolutely nothing has happened since 2019, and Boris is still this hugely popular lovable buffoon that wins elections.”

    Two rival Whatsapp groups have already sprung up for councillors and other local members: a ‘Back Boris’ group containing more than 500 people and a ‘Ready4Rishi’ group which is closer to 300. 

    Stumbling blocks

    Sunak faces two major obstacles in his quest for Downing Street. The first — a major problem in his last campaign — is a perception of untrustworthiness among the grassroots, still angry that he turned on Johnson in July and triggered the sequence of events that led to the PM’s exit.

    Second, Sunak is widely seen to have fought a lackluster campaign against Truss last time around — and the Conservative Party prides itself on picking winners. In the words of Tory focus group guru James Frayne, Sunak was “technocratic” where Truss was punchy and bold. 

    For his part, Johnson comes with enough baggage to fill the Downing Street flat several times over. Most pressingly, he is facing a parliamentary inquiry into whether he misled the House of Commons over the so-called Partygate scandal — a potentially serious offense which could see him temporarily suspended as an MP.

    One MP elected in 2019 under Johnson’s banner said: “This inquiry would rip us apart if Boris was in No. 10.” An ex-aide to Johnson predicted that choosing him would prove to be “short-term gain for long-term pain,” as Johnson would provide a temporary bounce for the Tories “only to be then mired in months of crap” around the inquiry. 

    The Johnson myth 

    But there are good reasons, too, why these two former allies are the leading contenders for No. 10.

    “[Johnson] does just make people feel good about themselves,” said a senior Conservative official who has known him since his time as mayor of London. “He has that quality.”

    A former Sunak campaign member who has worked in frontline politics since the David Cameron era said he was “the hardest working politician I’ve ever seen in my life,” adding: “I don’t think anyone comes close to him in understanding the economy.”

    Henry Hill, deputy editor of ConservativeHome, said the two men’s electoral appeal was radically different. Sunak would enable a “blue wall”-centered strategy at the next election — appealing to more affluent seats in the South — while “the best version of a Boris case is that it’s leaning into the realignment which accepts the Conservative Party’s future is more based on working-class constituencies in the North.”

    Despite the persistent view among many Tories that Johnson is an election winner, however, pollsters warn the picture has shifted since his thumping 80-seat victory in 2019. 

    Keiran Pedley of IPSOS said Johnson’s net satisfaction rating with the general public on leaving office was worse than that of past PMs John Major, Tony Blair, Gordon Brown or David Cameron, while a recent poll found most people rated Sunak above Johnson when it came to doing a better job than Truss. 

    Perhaps more important than their personal ratings, Pedley added, the Tory Party “probably needs to consider that their problem is that people have lost confidence in them on the economy and are looking anew at Labour.”

    None of the above

    It is not beyond the realms of imagination that a third candidate surges through the middle and defeats the two biggest hitters in the race.

    Brexiteer darlings Penny Mordaunt, Kemi Badenoch and Suella Braverman would all be hopeful of beating Sunak in a members’ ballot — although of these, Mordaunt is probably the only one likely to attract enough support from MPs to reach a final head-to-head. 

    Intriguingly, rumors abound — denied by both camps — of the possibility of a deal between the two men; one perhaps accepting a senior position in the other’s administration in return for their support.

    “I reckon he wants a big job,” one former adviser to Johnson said. “Home secretary, or foreign secretary maybe.”

    While Johnson was photographed flying back to the U.K. from his Caribbean holiday late Friday night, many expect he will only reenter the fray if he is confident he can win. 

    “Him losing a leadership contest is just ignominious — that’s not how the myth is meant to end,” said Hill. “In that circumstance, he’d probably be much happier always being able to think ‘oh, it could have been me.’”

    This story was updated to include Boris Johnson’s return to the U.K.

    CORRECTION: This story has been updated to say that nobody since Bonar Law in the 1920s has led the Conservative Party twice.

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    Esther Webber

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  • India-UK free trade deal: Britain’s Scotch whisky industry to miss out on the big Diwali party

    India-UK free trade deal: Britain’s Scotch whisky industry to miss out on the big Diwali party

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    Britain’s Scotch whisky industry was expected to be one of the biggest winners in the long-awaited Indo-UK free trade deal which now won’t be meeting the much-anticipated Diwali deadline.

    It was former UK Prime Minister Boris Johnson who had set the Diwali deadline for the trade deal with India. However, new UK Trade Secretary Kemi Badenoch recently said that her country was no longer working to that deadline. She further said that it makes sense to focus on the deal itself rather than the date.

    While the date doesn’t matter for the new administration in the UK, it certainly does for the whisky industry there as it will miss out on another Diwali party here in India – the largest whisky market in the world.

    Alcohol consumption during Diwali is very high in India and capturing this season would have made huge commercial sense for the Scotch whisky industry which accounts for 2 per cent of the total Indian whisky market (production of 2.4 billion bottles annually).  

    Indian whisky production is over two and a half times the total volume of total Scotch whisky production. In 2021, India was Scotch whisky’s 8th largest export market by value worth £146m (£102m in 2020), and second largest by volume, with the equivalent of 136m bottles exported (95m bottles in 2020).

    For the UK, the deal would have secured jobs and increase the industry’s contribution to the economy by more than £300 million to nearly £6 billion. Unlocking tariffs into India could potentially boost revenue to the Indian government, both at the Centre and the states, by £3.4 billion annually.

    Scotch Whisky Association CEO Mark Kent has called the ongoing negotiations a once-in-a-generation chance to give more Scottish distillers the opportunity to do business in India. He, however, said that the industry wants to see a deal agreed upon, but not any deal.

    “We want to see a deal agreed, but not any deal. To deliver for the industry, any agreement must open up the market to more Scotch Whisky producers, which will in turn generate hundreds of new jobs across the UK, hundreds of millions of pounds of additional exports, and boost investment and revenue in India,” he said.

    Kent also said that securing a deal with India to reduce the 150 per cent tariff on Scotch whisky was the industry’s top international trade priority.

    Industry insiders from other sectors also want to tread with caution, especially after the reports of negotiations hitting a roadblock post UK Home Secretary Suella Braverman’s comments on Indians over-staying their visas.

    The Ministry of External Affairs confirmed the deal is being worked upon so did the UK Trade Secretary.

    Organisations working incessantly for a long time since the deal was announced in January 2022 now want to walk on the side of caution.

    In Brexit Britain when the economy is on a downward spiral and the government in constant turmoil, the Indo-UK trade deal would come as a jewel in the crown.

    Also read: How Suella Braverman has put India-UK free trade deal on the verge of collapse

    Also read: No longer working to Diwali deadline for India trade pact, says UK trade minister

    Also read: UK needs FTA much more and India should play like a winner, says Lord Meghnad Desai

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