Connect with us

Europe

India just agreed a massive trade deal – with the UK

Published

on


London
CNN
 — 

India and Britain struck a “landmark” trade deal Tuesday, the UK government said, marking progress on lowering and removing tariffs just as President Donald Trump is busy raising US import taxes to historic levels.

For weeks, Trump has said that at least one trade deal is imminent with one of the dozens of countries in active negotiations with the United States to avoid his punishing tariffs – with India among the most likely to reach such an agreement first.

The prospect of an agreement with any one major trading partner has boosted confidence in US financial markets and raised hopes that the world may avoid the worst impacts of America’s tariffs. But so far, no deal has emerged.

Instead, it’s the United Kingdom that has secured a trade deal with India.

The two nations’ agreement is “the biggest and most economically significant bilateral trade deal the UK has done since leaving the EU,” the UK Department for Business and Trade said in a press release.

As a result of the agreement, it noted, bilateral trade is expected to swell by £25.5 billion ($34.1 billion) per year in the long run. That would be a 60% increase from the 2024 level, based on UK government data.

India has agreed to reduce tariffs on a range of UK products, including whisky, medical devices, advanced machinery and lamb. And most of these levies will be removed altogether within a decade, according to the release.

In turn, the United Kingdom will lower tariffs on Indian goods, the business and trade department suggested, without providing details.

“British shoppers could see cheaper prices and more choice on products including clothes, footwear and food products, including frozen prawns, as (the) UK liberalizes tariffs,” the release said.

The Trump administration, for its part, has said India, Japan and South Korea will likely reach a trade deal with the US, but the weeks are rolling on with no deal in sight.

And the US has a tight deadline: Its so-called “reciprocal” tariffs are set to go into effect on July 8, when levies as high as 50% will start applying to dozens of nations. The Trump administration risks causing serious economic damage, which could quickly turn into a US and global recession, if it doesn’t hammer out any trade deals soon.

The UK’s latest agreement is not its first major trade deal with an Asian country. After leaving the European Union in 2020, Britain clinched an agreement with Japan later that year. That deal was set to increase trade between the two countries by about £15.2 billion ($20.3 billion), the UK government said at the time.

“We are now in a new era for trade and the economy,” UK Prime Minister Keir Starmer said Tuesday, commenting on the deal with India. “Strengthening our alliances and reducing trade barriers with economies around the world is part of our Plan for Change to deliver a stronger and more secure economy here at home.”

Emma Rowland, policy adviser for trade at the UK’s Institute of Directors, made a similar assessment.

“In light of recent trade wars and US tariff-related disruption, new partnerships that encourage free and open trade should be celebrated,” she said. “The UK-India trade agreement is a win for the UK, removing barriers and business costs for British firms trading with the fourth-largest global economy.”

CNN’s Robert North, Anna Cooban and David Goldman contributed reporting.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Europe

Xi Jinping set to arrive in Moscow as Putin’s ‘guest of honor’ ahead of Victory Day military parade

Published

on


Hong Kong
CNN
 — 

As Russian President Vladimir Putin prepares for his heavily choreographed May 9 “Victory Day” military parade, he’s been clear who’s at the top of his guest list: Xi Jinping.

The Chinese leader is set to arrive in Moscow on Wednesday for a four-day state visit, where he’ll deepen “mutual trust” with Putin, according to Beijing, and attend activities commemorating 80 years since the Allied forces’ World War II victory over Nazi Germany.

Xi’s attendance marks a strong showing of unity between the two autocrats and their nations at a moment when US President Donald Trump’s “America First” diplomacy has shaken global alliances and reshaped relations between Washington and both powers. In remarks last month, Putin described Xi as his “main guest.”

Brazil’s President Luiz Inacio Lula da Silva, Vietnam’s President To Lam and Belarussian leader Aleksandr Lukashenko are among other leaders expected to attend the celebrations. Contingents from the Chinese People’s Liberation Army honor guard will also join the parade, which takes place in the shadow of Putin’s assault on Ukraine.

To commemorate the event, Putin proposed a three-day ceasefire with Kyiv – a decision some analysts say was motivated by a desire to show off Russia’s military might uninterrupted in front of foreign dignitaries. Ukrainian President Volodymyr Zelensky rejected the proposal, calling it a “theatrical performance” and reiterated his support for an earlier US proposal for a 30-day ceasefire.

Earlier this month, Zelensky warned dignitaries traveling to the event that Kyiv “cannot be responsible for what happens on the territory of the Russian Federation,” amid the ongoing conflict – which the Kremlin later said amounted to a threat.

Ukraine has launched multiple drone attacks on Moscow over the course of the war, including in recent days – prompting temporary closures of airports in the capital for several hours. Its biggest attack on the Russian capital in March killed three people.

Ukraine says its attacks are aimed at destroying infrastructure key to Moscow’s war efforts and are in response to Russia’s continued assault on Ukrainian territory, including residential areas and energy infrastructure.

Russia’s May 9 “Victory Day” is one of the country’s largest celebrations and marks Nazi Germany’s 1945 surrender to the Soviet Union, a day which has become increasingly important under Putin, who has falsely claimed his war in Ukraine is a “denazification.” Previous years have seen a diminished supply of military hardware as Russian tanks are instead mobilized on that war’s frontlines.

Europe celebrates its VE Day, marking Germany’s surrender on all fronts, a day prior.

Rescuers work near a body of a victim and damaged vehicles at the site of a Russian missile strike in Sumy, Ukraine last month.

Shifting landscape

The visit is Xi’s third time in Russia since Putin launched his war more than three years ago, but much has changed since his last visit just over six months ago.

China and the US are now locked in an escalated trade war that threatens major impact to both economies, and Beijing finds itself in need of strengthening its friendships – and trade partnerships – with other nations, including Russia. Top officials from the US and China are set to meet in Switzerland later this week, in what could begin a lengthy process of trade talks to end frictions.

Moscow, meanwhile, has found a much more sympathetic America under Trump compared with his predecessor, but is now warily eying recently warming ties between Washington and Kyiv as the US President appears to lose patience with Putin in his push for an end to the conflict.

“Now … there are more incentives between China and Russia to present a solid image of their alignment,” said Yun Sun, director of the China program at the Washington-based Stimson Center think tank.

“Given the turbulence created by Washington’s policy in the world, China and Russia will be signaling that there is still stability and credibility in international affairs and de-Americanization is already in progress. They will rally and call for more support against US unilateralism and hegemonism, publicly and openly,” she said.

For Moscow and Beijing, an event celebrating the end of World War II – which saw the formation of the United Nations-led international system – creates the ideal backdrop to play up such rhetoric at a time when the US has exited some UN bodies and rattled long-standing alliances in Europe.

An article published by China’s state news agency Xinhua Sunday claimed Xi and Putin would “lead the correct direction of global governance, clearly oppose unilateralism and bullying, and work together to promote an equal and orderly world with multipolarity and inclusive economic globalization.”

The two leaders, known for making a show of their close rapport, have ramped up their countries’ economic and security ties in recent years. They’ve also worked together to frame themselves as responsible alternative leaders to the US, even as Russia wages war in Ukraine and Beijing ramps up its aggression in the South China Sea and toward Taiwan, the self-governing island that Beijing declares its own.

The countries’ relations have only been accelerated by Russia’s war, as Beijing has emerged as a key lifeline for Moscow, despite claiming neutrality in the conflict.

China and Russia reached record bilateral trade last year as a sanctions-strapped Moscow increasingly looked to China as an export market and source of products. Western governments have said dual-use products from China like microchips and machine parts are propping up Moscow’s defense-industrial base, losing Beijing goodwill in Europe. China defends its “normal trade” with Russia.

Russian servicemen march on Moscow's Red Square during the Victory Day military parade last year.

‘Standing jointly’

On this visit, observers say Xi will be looking to ensure China’s continued access to Russia’s natural resources and market, as the country now faces 145% tariffs on most exports to the United States and has thrown up high retaliatory tariffs of its own in an entrenched trade war.

“Given the current American administration’s policies towards China, China really needs Russia in many aspects – trade wise, energy resources wise,” said Tamás Matura, a senior fellow at the Center for European Policy Analysis.

But those same trade tensions – and Trump’s questioning of US economic and strategic ties with Europe – has also created a potential opening for China to repair relations with Europe, analysts say, something Xi is likely to be aware of as he navigates his diplomacy in the days ahead.

“A lot of European observers will be looking at and listening to Xi Jinping speech in Moscow – will he talk about, in a meaningful way, peace in Ukraine? Will China change its fundamental approach towards supporting Russia and its war efforts against Ukraine, which would facilitate its relationship with Europe?” Matura said.

Similar questions have been raised in recent months over whether a shifting US stance could draw Moscow closer to Washington – at Beijing’s expense.

Trump in recent months has upended traditional US policy toward Russia, parroting Kremlin rhetoric about the war in Ukraine and appearing open to concessions in Moscow’s favor as he aims to end to the entrenched conflict.

But there are signs of impatience in the Trump administration with Putin’s on-going onslaught against Ukraine despite the Ukraine-backed 30-day ceasefire proposal. And Washington and Kyiv’s signing last week of an agreement on natural resources is widely seen as strengthening Ukraine’s position with Washington.

Regardless, close observers of both Xi and Putin’s governments say there’s little incentive for either to throw over what has been a carefully crafted relationship with deep ideological and economic benefits.

That’s been the leading view from Beijing. “Russia stands jointly with China” on supporting the international order, according to Wang Yiwei, director of the Institute of International Affairs at Renmin University in the Chinese capital.

“Russia distrusts the US … and the fundamental hostile attitude toward Russia in the US and in general from the West cannot be changed (by Trump),” said Wang said.

Instead, analysts say, Xi and Putins’ meetings in the days ahead are likely to send another message: China and Russia remain as aligned as ever.



Source link

Continue Reading

Europe

Trump’s Oval Office meeting with Carney didn’t reach Zelensky-level tension. But it wasn’t all neighborliness

Published

on



CNN
 — 

It wasn’t the most contentious meeting the Oval Office has ever seen. Nor was it the warmest.

Instead, the highly anticipated meeting Tuesday between President Donald Trump and his new Canadian counterpart Mark Carney fell somewhere in the middle: neither openly hostile nor outwardly chummy, evincing very little neighborliness, at least the type used on neighbors one likes.

The midday talks illustrated neatly the new dynamic between the once-friendly nations, whose 5,525-mile border — the world’s longest — once guaranteed a degree of cooperation but which, to Trump, represents something very different.

“Somebody drew that line many years ago with, like, a ruler, just a straight line right across the top of the country,” Trump said in the Oval Office as his meeting was getting underway. “When you look at that beautiful formation when it’s together – I’m a very artistic person, but when I looked at that, I said: ‘That’s the way it was meant to be.’”

That is not how Carney believes it was meant to be.

“I’m glad that you couldn’t tell what was going through my mind,” Carney told reporters later that day about the moment Trump made that remark.

Still, Carney didn’t entirely hold his tongue.

In a meeting dominated by Trump’s comments — he spoke 95% of the time on all manner of topics, from the Middle East to Barack Obama’s presidential library to the state of high-speed rail in California — it was the new prime minister’s pushback on the president’s ambition to make Canada the 51st US state that stood out.

“As you know from real estate, there are some places that are never for sale,” he said, drawing a begrudging “that’s true” from Trump before Carney carried on.

Trump Carney oval.jpg

Carney tells Trump: Canada isn’t for sale

02:32

“We’re sitting in one right now. You know, Buckingham Palace that you visited as well,” he continued, as Trump nodded another “true.”

“And having met with the owners of Canada over the course of the campaign last several months, it’s not for sale,” he concluded. “It won’t be for sale ever.”

With that statement, Carney essentially accomplished what he’d come to Washington to do, stating in the clearest terms possible that Canada would not be annexed by its southern neighbor.

Of course, he’s been saying that for weeks, most vocally during last month’s federal election in Canada that saw his Liberals mount a shocking come-from-behind win riding a wave of anti-Trump sentiment.

Before arriving at the White House, Carney also sought to send the message by announcing an upcoming visit from King Charles III, Canada’s official head of state, using the sovereign to make the point that Canada’s sovereignty wasn’t up for debate.

Those messages, if he’s heard them, have not caused Trump to back off, not even when sitting across from Carney in the Oval Office.

“Never say never,” Trump shrugged, as Carney mouthed the word “never” over and over next to him. “I’ve had many, many things that were not doable, and they ended up being doable, and only doable in a very friendly way.”

Still, the president didn’t press the matter further, and the meeting did not fall off the rails. For a topic that has caused so much visceral anger in Canada, the issue was essentially defused, for the time being, in the Oval Office.

After reporters left the room, Carney told Trump it was not “useful” to repeat his idea of annexing Canada.

“But he is the president,” he said recalling the exchange at a solo press conference after the meeting ended, “and he will say what he wants.”

Trump hasn’t, however, deployed the insult against Carney that he used against his predecessor, Justin Trudeau. “As far as calling him Governor Carney, no, I haven’t done that yet — and maybe I won’t,” Trump said at an unrelated White House event later in the day.

Carney said they’d agreed to meet again next month at the G7 summit he is hosting in Alberta, which Trump had previously not committed to attend.

Still, relations between Washington and Ottawa remain at their lowest point in memory.

As Carney was at Blair House, across Pennsylvania Avenue from the White House, preparing to depart for his meeting with Trump, the president launched a broadside on Truth Social, declaring Canada was overly dependent on the United States.

“We don’t need ANYTHING they have, other than their friendship, which hopefully we will always maintain,” Trump wrote. “They, on the other hand, need EVERYTHING from us!”

By the time Carney arrived, however, Trump seemed uninterested in having a public fight.

“We have some tough points to go over, and that’ll be fine,” Trump said after praising Carney for “one of the greatest comebacks in the history of politics.”

US President Donald Trump meets with Canadian Prime Minister Mark Carney in the Oval Office of the White House in Washington, DC, on May 6, 2025. (Photo by Jim WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)

See Trump’s answer when asked about lifting Canadian tariffs

01:36

The meeting ended somewhat abruptly with Trump declaring the US did not need Canadian cars or steel, and that there was nothing Carney could say or do that would cause him to lift tariffs.

“Just the way it is,” Trump said.

But by the standards of the Trump White House, where another leader was berated and evicted in the Oval Office earlier this year, it was all relatively mild.

Even Trump acknowledged he’d seen worse.

“We had another little blow up with somebody else,” Trump said, a veiled allusion to his fight with Ukrainian President Volodymyr Zelensky. “That was a much different. This is, this is a very friendly conversation.”



Source link

Continue Reading

Europe

DoorDash to buy Britain’s Deliveroo for nearly $4 billion to expand its reach in Europe

Published

on


US meal delivery firm DoorDash will buy British rival Deliveroo for £2.9 billion ($3.9 billion), the companies said Tuesday, as they look to expand their reach and take on competition.

The acquisition will help DoorDash grow its market share in Europe, competing against Just Eat and Uber Eats. Britain and Ireland are Deliveroo’s largest market, accounting for 62% of the value of its orders in its latest quarter. Deliveroo’s other large markets include France and Italy.

The companies rekindled talks last month after DoorDash approached Deliveroo with a 180 pence per share proposal, which was confirmed Tuesday as the final offer, sending Deliveroo shares up about 2% to 176 pence per share.

DoorDash said it would not increase its offer, but reserved a right to do so if a third party emerged with a competing offer for Deliveroo.

Deliveroo’s shares have struggled since their debut when they were sold at 390 pence in 2021, a time when meal delivery services were boosted by the pandemic.

“Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders,” the company’s Chair Claudia Arney said in a statement.

Deliveroo has received undertakings of support from investors holding about 15.4% of shares, it said, including from founder and chief executive Will Shu, Greenoaks and DST Global.

However, Panmure Liberum analysts highlighted “the notable absence” of Deliveroo’s largest investor, Amazon (AMZN), from this list, adding that they still see Amazon as the most likely counter-bidder.

Amazon, which has a 14.4% stake in Deliveroo, did not immediately respond to a Reuters request for comment.

In 2024, Deliveroo and DoorDash had orders worth about a combined $90 billion, the companies said.

Will Shu, who co-founded Deliveroo in 2013 and leads the company, is set to receive about £172.4 million ($229.7 million) for his 6.4% stake.



Source link

Continue Reading

Trending