Brussels is pushing for an EU-UK summit in the autumn, according to a leading European trade minister, as both sides work towards an agreement on a several key trade issues.
Beyond the ongoing EU-UK relationship reset, the government has announced an AI growth zone in Scotland while oil prices jumped following the end of a ceasefire in the Middle East.
EU ‘determined’ for autumn summit
The EU says it’s “determined” to have its next UK-EU summit “in the autumn”, according to one of its leading ministers.
Ireland’s Europe minister, Thomas Bryne, told Politico Morning Trade:
“I think we’re determined to have that in the autumn, and we’ll continue to work to make sure that we can.”
Byrne made the comments during meetings with the UK’s new EU relations minister, Hamish Falconer, where the two reportedly discussed the three ‘pillars’ of the UK-EU reset: a sanitary and phytosanitary (SPS) common area, youth mobility and linkage of emissions schemes.
A summit was expected earlier in the year but was postponed after the resignation of former prime minister Sir Keir Starmer.
While Byrne said the talks were “productive”, the FT reports that both capitals have differences of opinion on the numbers available under a youth mobility scheme. Westminster has reportedly suggested a cap of 50,000 under the scheme, whereas Brussels is pushing for a number in the six figures.
Byrne insisted the youth mobility scheme would bring “huge benefits” for both British and European students and should go beyond universities.
“We want to have a summit that delivers,” the Irish minister added.
AI growth zone announced
The Cabinet Office has announced the establishment of an AI Growth Zone in the Scottish county of Lanarkshire, claiming that it will support thousands of jobs and attract major new investment.
Hundreds of millions of pounds worth of investment has been promised by organisations like the National Wealth Fund, the Scottish National Investment Bank, ING and Santander.
Growth zones are government policies designed to provide communities with the energy resources needed to power AI infrastructure and create both jobs and investment opportunities. AI requires a significant amount of power, and the government says that the Lanarkshire site’s energy needs will be met “overwhelmingly” by renewables.
The AI minister, Kanishka Narayan, said that the announcement would put Scotland “at the forefront of one of the biggest economic opportunities of our time”.
Business and trade secretary Jonathan Reynolds added that:
“By using the National Wealth Fund to unlock private finance, we’re transforming Scotland into an AI powerhouse - delivering high-skilled jobs, training, and new opportunities that people can access on their doorstep.”
Dell Technologies is also expected to base their Scottish team in the centre, according to the press release.
Oil prices jump
Oil prices have jumped once against after the US-Iran ceasefire expired, hitting a three-week high, just as US President Donald Trump threatened Oman.
Iran is reportedly negotiating directly with Oman over the future of the Strait of Hormuz, which prompted Trump to threaten to bomb Oman if it “gets in the way” of his naval blockade.
The price of Brent Crude rose towards US$92 a barrel, following the breakdown of negotiations between Iran and the US.
The UK Maritime Trade Observatory (UKMTO) said it received a report of a ship being struck in the Strait of Hormuz by an unknown projectile, resulting in an injured crew member and damage to the engine room. This follows at least three reported attacks last week on commercial shipping in the strait.
In another piece of bad news for shippers, the UKMTO also reported yesterday (17 August) that a cargo ship was hijacked south of Somalia. An anti-piracy task force under the Djibouti Code of Conduct coincidentally announced it was stepping up regional cooperation on anti-piracy on the very same day.
Other trade headlines
· North East Scotland MSP Michael Marra and South Scotland MSP Joe Fagan will compete for the Scottish Labour leadership, following the closing of nominations yesterday
· Russia insists that the UK will “pay” for “deliberately opting for an escalation of the Ukraine crisis” after confirmation of British-made drones used in Ukrainian attacks against Russian infrastructure
· The US and Canada have held last-minute trade talks, ahead of Wednesday’s tariff deadline
Yesterday in trade
· UK prime minister Andy Burnham is expected to face a series of questions on his environmental policy this week
· The US threatened allies over cooperation with China on AI policy
· Canada and the US remained at loggerheads over tariffs
