In today’s international trade headlines, the government has said that it wants to support UK jobs with its new procurement rules, with credit awarded for bidders that create new employment opportunities or improve skills in local communities.
Another government announcement details new criteria for critical minerals spending, while reports suggest an Iran-Oman agreement could provide safe passage for commercial shipping in the Strait of Hormuz.
Procurement to support ‘local jobs’
The Cabinet Office announced a plan for public spending to “support British jobs”, with new bids for government contracts now being judged on their commitment to supporting UK employment, tackling skills shortage and supporting young people into work.
Under the changes, the score for bringing benefits into the local community will be raised from 10% to 20% for contracts worth £5m.
First Secretary of State Louise Haigh said:
“Every pound of taxpayer money should be spent in a way that benefits local communities - creating good jobs and giving young people the skills they need for the future.”
According to the cabinet office, bidders on public contracts will get credit for creating local jobs that pay above the minimum wage and that help to plug skills gaps in the local community.
New critical minerals funding
The Department for Business, Innovation, Science and Trade (BIST) announced its guidance for a Critical Minerals Accelerator Competition.
The accelerator is a £25m grant funding scheme that aims to support research and development for critical minerals projects that would otherwise struggle to attract commercial or public finance. The expectation is that all approved grants will be between £150,000 to £3m and delivered by March 2030.
The new guidance details the application process – including timelines, who is eligible and the processes involved – and how a project will be monitored throughout its lifespan.
Notably, the document confirms that BIST is including clawback provisions for instances of non-performance, insolvency and default.
The scheme forms part of Vision 2035, the government’s strategy for critical minerals. This long-term vision to strengthen the UK’s access to minerals includes a target for 20% of the UK’s needs to be met by domestic recycling, a diversified supply network and at least 10% of UK’s supply to be provided by domestic production.
China hits US companies with sanctions
Beijing’s Ministry of Commerce has announced multiple sanctions on US companies.
In a series of announcements from its commerce spokesperson, China imposed new sanctions on several US companies and strengthened export controls on drones and related technology.
The move was made in response to US measures taken against Chinese companies last week, as Washington added 43 companies to a list those banned from importing into the US as a result of alleged use of forced labour in Xinjiang.
Before the move was announced, China’s ministry said it “strongly deplores and firmly opposes” the US’ sanctions and control measures, accusing the US of “politicising” scientific research cooperation.
Strait of Hormuz
Iran says that it has almost agreed a deal with Oman for a route facilitating commercial shipping through the Strait of Hormuz.
According to the BBC, Iranian foreign ministry spokesman Esmaeil Baqae said the deal was in the “final stages”. Oman has not publicly commentated on the story.
If true, this could open a pathway for commercial shipping to transit through the strait once again. However, no specific details have been released and concerns remain that shipping could still be at risk
Security analysts told the FT that US President Donald Trump’s demands have shrunk from a large list to simply allowing the strait to return to its prewar state.
“What was once free and unfettered is no longer,” Aaron David Miller, a former Middle East peace negotiator, told the publication.
“And there is almost nothing that Trump can extract from an agreement that the Iranians are willing to accept that changes that reality.”
Today Trump was forced to deny Reuters reports that the US had run out of its long-range guided missiles, leaving stockpiles “dangerously low”. Unnamed sources told Reuters that the US military had used “virtually all” of its long-range missiles.
Other trade headlines
· British Steel has appointed its first set of graduates and apprentices, making them the first new starts appointed since 2002
· Politico reports that the EU’s Entry/Exit border system is being switched off when it is overwhelmed by travellers
· The Trade Remedies Authority has launched a series of new investigations, one into imports of suspension polyvinylchloride (S-PVC) from China, Mexico and South Korea and another into the imports of polyethylene terephthalate (PET)
Yesterday in trade
· The Trump administration has refunded over US$100bn in tariff payments
· A report from Imperial College London found that UK chemicals manufacturing has continued to decline
· New foreign secretary Ed Miliband met his US counterpart Marco Rubio
