There's positive news for the UK’s relationships with two of its biggest trading partners today (16 September), with fresh US investment announced and talks on trade alignment taking place in Brussels.
Elsewhere today, the EU is also attempting to thwart Russia’s war economy amid a sanctions setback, while also successfully implementing a new curb on dual-use goods.
Trump state visit ‘huge opportunity’ for UK
Following confirmation of nuclear and technology deals yesterday, closer financial cooperation is also on the agenda ahead of US President Donald Trump’s second UK state visit to the UK this week, as a number of sizable investments have been announced.
Speaking to CGTN, Chartered Institute of Export & International Trade director general Marco Forgione said that the visit represents a “huge opportunity” for the UK and prime minister Sir Keir Starmer.
Highlighting the technology deals announced yesterday and the significance of Trump’s arrival flanked by senior leaders from Nvidia and OpenAI, he added this trip could mean “there are potential billions of pounds of investment in small modular reactors, the potential for investment in data centres and the development of chips”.
He went on to say the investment could “turbocharge” the UK as the government “looks to deliver on both its industrial strategy and its trade strategy, focused on transforming the UK economy, making it fit for future industry”.
The FT reports that prime minister Sir Keir Starmer wants to present the UK as strong destination for foreign investment, ahead of a planned announcement from leading US private equity firm Blackstone that it will invest £100bn in UK assets over the next decade.
Sky News reports the agreement followed talks between firm representatives and Downing Street officials led by the PM’s business adviser Varun Chandra.
Other investments include a £5bn sum from Alphabet – Google’s parent company – earmarked for AI infrastructure and scientific research, the BBC reports.
UK-EU progress
In positive news for the UK’s relationship with another crucial trading partner, EU relations minister Nick Thomas-Symonds is in Brussels today to advance the next phase of talks on regulatory alignment.
Last week, Thomas-Symonds spoke at the launch of the Chartered Institute’s report on UK-EU trade and cooperation. The paper outlines key areas of alignment, including customs processes, rules of origin reform and how the Common Sanitary and Phytosanitary (SPS) Area agreed at May’s leader’s summit can be best implemented.
Thomas-Symonds will be in Bruges on Wednesday (17 September) to meet EU counterpart Maroš Šefčovič to discuss commitments made at the summit, Politico reports.
Sanctions delay
The EU’s upcoming sanctions package – the 19th it will have applied since Russia’s invasion of Ukraine – is set to be delayed, with Politico reporting that Wednesday’s intended announcement has been pushed back indefinitely.
European energy imports from Russia have been at the forefront of US-EU relations recently. As we reported yesterday in Commodity in Focus, Trump has called for the bloc to further cut its dependence on Russian oil, telling the EU he’s “ready to ‘go’” on sanctions once they do so.
Several European nations, including EU member Hungary as well as Serbia, have opposed the phase-out of Russia energy supplies.
Dual-use goods crackdown
One set of commodities the EU has shown less hesitation in restricting is dual-use goods. Breaking with a decade’s-old convention and the Wassenaar Arrangement – an international forum that agrees which dual-use goods should face curbs – the bloc has unilaterally moved to curb Russia’s access to cutting-edge technologies crucial to its war effort.
The FT reports that quantum computers, integrated circuits and chip-making machines will now face harsh restrictions, preventing their export to Russia.
Under the Wassenaar Arrangement, international consensus would typically need to be reached in order to place specific dual-use goods under restriction, with Russia blocking any that would supports its Ukraine war effort. The EU’s decision marks the first time since Russia’s invasion of Ukraine that it has abandoned this process.
In a statement following the decision, the European Commission said that “uniform EU-level controls guarantee effectiveness and transparency while maintaining the Union’s competitiveness and a level playing field for economic operators”.
Other news today
· The Department for Business and Trade’s annual International Trade Week will take place between 3 and 7 November this year. You can learn more here
· In another blow to public finances, the state pension is set for a 4.7% increase under the ‘triple lock’ this year, in line with wages
Yesterday in trade
· UK-US nuclear deals were announced ahead of Trump’s visit, along with a rumoured technology agreement
· The latest UK inflation rate announcement comes this week, ahead of the Bank of England’s next interest rate decision
· There’s still an opportunity to join our customs and food and drink Special Interest Groups, which will be held Thursday (18 September)
You can read more here.
