The Labour Party’s Annual Conference is well underway, with today (28 September) to feature set-piece speeches from the chancellor John Healey, home secretary Shabana Mahmood and foreign secretary Ed Milliband.
Prime minister Andy Burnham is due to deliver his keynote address tomorrow (29 September) afternoon, and trade policy experts will be keeping a keen eye on anything he says about the future of the UK’s relationship with Europe, with further pressure over the weekend for him to drop Labour’s manifesto ‘red lines’ on the EU.
We begin, however, with a tariff announcement from Washington.
US-China agreement on ‘non-sensitive’ goods
Following the extension of their ongoing ‘trade truce’ last week, the US and China announced a low tariff regime covering US$60bn in trade of ‘non-sensitive goods’, the FT reports. The announcement came two days after Xi Jinping and Donald Trump’s seemingly successful leaders’ summit.
“As a direct result of the strong relationship between president Trump and president Xi, the US and China… have recommended US$30bn of trade in non-sensitive goods on each side that could benefit from more favourable tariff treatment in the future,” said US trade representative (USTR) Jamieson Greer.
A ‘30-for-30 framework’, determined by a board of trade, will allow each country to import US$30bn of non-sensitive goods at lower tariffs. The Chinese commerce ministry said that the approach will “maintain stability” and create “favourable conditions” for trade between the countries.
Chinese exports covered by the scheme include 77 items, from child seats to electric shavers. There are well over a thousand US goods covered, including agricultural products such as chilled foie gras and medical devices.
What to look out for at Labour Party conference
Andy Burnham is due to make his first party conference speech as PM tomorrow, and what he says about future relations with Europe will be worth paying attention to – a source close to Burnham told Politico to expect something “pretty big”.
FT reporting over the weekend suggests that frank conversations are taking place within the party over whether it should drop its ‘red lines’ on the EU relationship, which include rejoining the single market or customs union. Burnham is continuing to take soundings on what to include in his much-anticipated 10-year plan for government.
Today, the spotlight will be on chancellor Healey in one of his final major speeches before another highly anticipated event for the Burnham government – the Autumn Budget.
Politics.co.uk reports that he is expected to declare a “new age of industrialisation” when he takes to the podium at noon. He is also set to confirm three new floating docks for the Royal Navy’s submarine service at a naval base in Clyde, in an enhancement for the country’s nuclear fleet.
His speech comes against the backdrop of narrowing fiscal headroom, with inflation driven by the US’ war with Iran starting to bite. Another worry will be speculation that Trump is about to make an “announcement” that the US will ban diesel exports.
Business and trade secretary Jonathan Reynolds last night admitted this would be a “significant concern” when speaking at a Politico event at conference.
The Chartered Institute team at Labour conference
Marco Forgione, director general of the Chartered Institute of Export & International Trade, is attending the conference and told LBC yesterday (27 September) that members will be looking for three things from the event: “clarity, certainty and cost reduction”.
He said that increasing exports was key to economic growth and that “big issues” around the relationship with Europe, particularly the EU’s ‘Made in Europe’ proposals, need to be resolved.
Forgione also spoke at a panel event the Chartered Institute hosted at conference this morning, in partnership with the University of Liverpool Management School, on the topic of ‘Revitalising the UK-EU relationship’. Read tomorrow’s Day in Trade digest for key talking points from the discussion.
Forgione is joined at conference by the Chartered Institute’s director of corporate affairs, Chris Martin, its UK public affairs lead Grace Thompson, senior public affairs executive Oliver Greensmith, and its media and communications lead Debbie Scott.
Also in the trade news today
- The UK’s biodiesel producers have criticised the government for declining to impose protective duties on subsidised US exports into the country, per the FT
- Analysis from Rebalance Earth, reported in the Guardian, has found that a majority of foodstuffs imported into the UK are at risk of drought
- The Department for Business, Innovation, Science and Trade has announced the opening of a new lithium mine in Cornwall by company Geothermal Engineering, saying that it will support over 100 jobs and help protect the UK’s supply of critical minerals
Other key dates for the diary
- Monday: UN Security Council to discuss Israeli settlement activity
- Tuesday: A new US ban on certain Canadian imports comes into effect
- Wednesday: USTR Greer hosts G20 Trade ministerial meetings
- Thursday: New energy price cap takes effect and VAT removed from electricity bills
- Friday: Plaid Cymru leader Rhun ap Iorwerth and Green Party leader Zack Polanski both to address their respective conferences
- Saturday: England play Croatia in the UEFA Nations League
- Sunday: Conservative Party Conference begins
