Today features a change in tack from the EU on emissions targets, as well as a shift on agricultural tariffs from China that could be a promising indication on the country’s trade truce with the US.
EU waters down green rules
EU nations have agreed a last-minute deal to ease new requirements that mandate they cut carbon emissions to 10% or less of 1990 levels before 2040.
The changes, sought by Italy and Romania, would allow EU countries to count 5% of the cuts to emissions by selling carbon credits internationally.
The finalised agreement, struck today (5 November), would also allow a further 5% to be claimed through carbon credits in emergencies. Emissions reduction requirements are also open to review every two years to evaluate if they are negatively affecting economic performance.
The goal was opposed by countries including Hungary and the Czech Republic, while Italy was central to the addition of the carbon credit and review provisions. The agreement was struck against the background of the COP30 summit, which starts next week.
China-US retaliation row-back
China has announced the suspension of tariffs it had placed on imports of US farm goods in response to this year’s ‘Liberation Day’ US tariffs.
Reuters reports that China is removing duties of up to 15% on American agricultural goods from 10 November, though a basic 10% tariff rate will remain in place. Chinese buyers of soybeans in particular still face a 13% tariff, though the US government said that, following Donald Trump and Xi Jinping’s meeting last week, China would purchase 12m tonnes of soybeans before the end of the year.
Even Rogers Pay of policy group Trivium China told Reuters that the tariff move was a “great sign” that both the US and Chinese side were moving ahead with the détente agreed at last week’s meeting. She said it "shows they're aligned and that the agreement is likely to hold up”.
However, the remaining 13% rate levied on soybeans means the US’ exports are still more expensive than Brazilian soybeans, imports of which to China have been increasing since the dispute between the two countries.
EU leaders swerve Colombia over US fears
European leaders due to attend a summit this week in Colombia have cancelled their visits following hostility from Trump.
Bloomberg reported yesterday (4 November) that the EU, which is seeking to avoid a rebuke from Trump, has opted against sending European Commission president Ursula von der Leyen or German chancellor Friedrich Merz, both of whom were due to attend.
Trump has accused Colombian leader Gustavo Petro of being an “illegal drug leader”. He has also been sanctioned by the US.
Merz’s spokesman Stefan Kornelius said the chancellor would not attend owing to “the low participation of other heads of state and government”.
Quantum initiative ‘to boost our economy’
G7 countries including the UK have launched a new international partnership aimed at accelerating breakthroughs in quantum computing.
The ‘NMI-Q initiative’ looks to standardise ‘measurement best practices’ in a bid to improve “development and adoption of quantum technologies” across the grouping of nations.
UK science minister Patrick Vallance said:
“The UK is setting the pace for the development of engineering biology and quantum technologies. Our new, cutting-edge Reference Biofoundry and strong global partnerships will fast-track innovators’ ideas onto the market to boost our economy. It will bring in the private investment that their ideas will attract.
“By investing in this vital infrastructure, the UK will continue to lead in innovation that we all benefit from.”
What else is in the news
· Trump will be disappointed by the news that his home city of New York elected democratic socialist Zohran Mamdani as its mayor yesterday, following the president’s calls for the city to reject him
· The White House hosted representatives from Switzerland for talks ahead of further discussions on ‘trade imbalance’, according to a post by Trump on his Truth Social platform
· Vietnam is set to back domestic companies with ‘preferential’ policies as the government looks to boost the private sector
Yesterday in trade
· UK chancellor Rachel Reeves gave a “scene setter” speech that has been interpreted as laying the groundwork for major tax increases at the Budget announcement this month
· The UK government issued new guidance for freight forwarders on the Russian sanctions regime
· The Philippines and the UAE reportedly applied to join the Trans-Pacific Partnership (TPP) in response to Trump’s tariffs
You can read more on those stories here.
