This week begins with an update on negotiations to reopen the Strait of Hormuz, as “positive and constructive” talks between the US and Iran could sour following Tehran’s wide-ranging list of demands for concessions from the Trump administration.
Elsewhere, a new report examining the UK government’s plans for trade and industry, and how they’ll work for businesses in practice, is set for publication this week. The new ‘Brexit minister’ has also set out his priorities for the EU-UK ‘reset’ talks.
‘Trade Triangle’ report published
This week marks the publication of the All-Party Parliamentary Group for International Trade & Investment’s first report on how the Labour government’s trade policies are impacting UK businesses.
The group, which is co-chaired by the Chartered Institute and Northpoint Strategy, will publish results from its inquiry into how the implementation of three long-term government plans are supporting businesses and where they are falling short.
The plans covered are the Trade Strategy, Modern Industrial Strategy and Small Business Plan.
‘The Trade Triangle’ paper will become available online on Wednesday (12 August), collating evidence submitted virtually from businesses all over the UK, as well as in-person feedback sessions hosted in Belfast, Windsor and Teesside.
Oliver Greensmith, senior public affairs executive at the Chartered Institute, who oversaw the inquiry, said:
“This report shows how the Industrial Strategy, Trade Strategy and Small Business Plan should be viewed as a collective triangle – with each 'corner' reinforcing the purpose of its broader aims – providing a clear roadmap for industry.
“It aims to help raise and test awareness of opportunities businesses can utilise in their day-to-day activities, through increased access to export support, improved skills, financial support and grants alongside online advice service. These enable businesses to thrive and prosper, hiring more staff and supporting well paid jobs.
“Our finding show that businesses believe they would benefit through greater devolution of financial, as well as decision making, power. Firms also emphasised the importance of taking pride in their local place and the collective benefit of forming partnerships alongside government and educational providers.”
Strait of Hormuz challenges
Following the latest escalation of conflict in the Middle East, in which Iran and the US again exchanged missile fire, Tehran has made several demands of the White House during ongoing ceasefire talks.
Iranian Supreme National Security Council secretary and commander in the chief of the Islamic Revolutionary Guard Corps, Mohammad Bagher Zolghadr, issued a statement in a live public broadcast calling for several conditions to be met.
These included lifting economic sanctions and ‘unfreezing’ Iranian assets, ending the naval blockade of US ports and withdrawing military from the area, compensating Iran for war damage, and a permanent end to the war and all military action against Iran and its armed allies in the region.
The US is yet to respond to the statement. It recently downgraded its own demands of Iran from wide-ranging concessions on armaments and its nuclear programme, to just the reopening of the Strait of Hormuz, through which a substantial proportion of the world’s oil flows.
The strait had previously been freely navigable to commercial vessels, but Iran is now attempting to impose a levy on ships crossing it.
Oman, which is mediating talks between the two parties, said this weekend that a breakthrough to reopen the strait was close, after “positive and constructive” talks. However, Iran has warned that any deal to confirm a secure passage for commercial vessels will not see access immediately restored.
Oman’s foreign ministry called for an end to attacks on ships in the region, while Iranian proxy the Houthis have claimed an attack that killed 7 in the port city of Mokha, Yemen.
The Guardian also recently reported that an estimated 20,000 shippers are stranded in the region because of Iran’s blockade.
EU-UK reset
New EU relations minister Hamish Falconer has said he wants to see “renewed pace” in UK-EU reset talks, after a leaders’ summit slated for 22 July was postponed following former prime minister Sir Keir Starmer’s resignation.
Falconer, former Middle East minister at the foreign office, reiterated that he would work within the ‘red lines’ set out in Labour’s 2024 election manifesto, including not rejoining the EU’s single market or customs union.
However, he said there was “room to be ambitious” within those, singling out cooperation on services trade.
“There’s also a whole range of areas in relation to services where I’d really like it to be progressed”, he told the Guardian.
However, the publication notes that senior EU officials also noted Falconer’s predecessor Nick Thomas-Symonds stumbled in getting a deal over the line because he “kept trying to add things” like services into the negotiations.
The three key strands of the existing negotiations are on aligning energy markets, youth mobility and creating a Sanitary and Phytosanitary Area to simplify agrifood movements.
The next EU-UK summit is expected to take place sometime in the autumn.
More news
· Despite Europe-wide efforts to reduce dependency on Chinese imports, Germany’s trade deficit with China grew
· Reuters reports that e-commerce firm Shein is scaling back operations in Vietnam after encouraging suppliers to manufacture there in the wake of Trump tariffs
Other dates in the diary
Monday: European Athletics Championships begin in Birmingham
Tuesday: Japanese markets close for Mountain Day holiday
Wednesday: Total eclipse across parts of Europe
Thursday: UK Q2 GPD results
Friday: EU’s flash Q2 GDP and employment estimate
Saturday: Indian prime minister Narendra Modi delivers speech to mark anniversary of independence from British rule
Sunday: FA Community Shield match between Premier League champions Arsenal and FA Cup winners Manchester City
