The Middle East crisis has entered its third week, with ongoing disruption in the Strait of Hormuz likely to continue to dominate this week’s news agenda.
However, closer to home, the UK’s relationship with the EU is also set to come to the fore this week. Senior ministers are in Brussels for talks and chancellor Rachel Reeves is set to give a set-piece speech tomorrow about closer reintegration with the bloc.
UK-EU reset returns
EU relations minister Nick Thomas-Symonds is heading to Brussels, alongside Europe minister Stephen Doughty and trade minister Chris Bryant for a joint EU-UK parliamentary partnership assembly, according to Politico’s London Playbook this morning.
The government is continuing to seek a ‘reset’ of the post-Brexit economic relationship, with work ongoing to remove trade friction, including through the creation of Common Sanitary and Phytosanitary (SPS) Area.
Their Brussels trip comes as Rachel Reeves prepares to give the annual Mais economic lecture tomorrow at Bayes Business School, at which she is expected to “make another push for Britain to secure greater access to the single market,” the FT reports. She has described closer ties with Europe as the “biggest prize” for the government.
Reeves’ address will be a “statement of intent”, a source close to her has said. She is expected to push for sector-by-sector engagement with the single market, but many member states, including France, would expect the UK to pay into the EU budget in return.
The speech comes amid a UK-EU row over tuition fees for European students during negotiations for the new youth mobility scheme. EU officials are calling for European students to pay domestic rather than international fees, a difference between £9,500 per year and as much as £60,000.
British negotiators say this was not mentioned in the initial framework for the talks that was agreed at last year’s UK-EU Leaders’ Summit, according to the Guardian. Were Europeans to pay domestic rather than international fees, the cost for British universities would be an estimated £140m a year.
UK consultations on the reset
Back in London, two new consultations were launched last week relating to the UK-EU reset – a Defra call for information on the SPS agreement and a call for evidence from the parliamentary European Affairs Committee into dynamic alignment.
Defra has invited businesses of all sizes across the agri-food sector to respond to its consultation by 23 April, and the dynamic alignment call for evidence will run until 20 April.
The Chartered Institute of Export & International Trade will respond to both consultations on behalf of its members and the wider trader community. You can submit information to the Chartered Institute’s response by contacting publicaffairs@export.org.uk.
Strait of Hormuz latest
US President Donald Trump is increasing the rhetoric with which he is urging Nato allies to support the “policing” of the Strait of Hormuz in order for energy exports from the region to resume.
In an interview with the FT yesterday, he said Nato members risked a “very bad” future if they failed to assist US efforts to open the chokepoint. A fifth of the world’s oil passes through the strait.
Trump called on China, France, Japan, South Korea and the UK to join a “team effort”. The Times reports that British prime minister Sir Keir Starmer is so far resisting US calls to send warships to the region.
The UK is continuing to grapple with the effects of the war, with pharmacists urging health secretary Wes Streeting to stockpile medicines from the region, according to the Telegraph. Starmer is also expected to unveil a targeted £50m package to support households most affected by the higher energy costs resulting from the crisis.
Xi-Trump meeting to be delayed
Trump also told the FT that he “may delay” his highly anticipated meeting with Chinese president Xi Jinping to focus US efforts on resolving the Strait of Hormuz crisis.
Xi is thought to be keen for the meeting to go ahead as planned due to the importance of face-to-face meetings with his US counterpart when it comes to stabilising the US-China relationship. Chinese officials were expecting that the Iran war wouldn’t disrupt the planned summit as recently as Friday.
Senior officials from both sides are continuing to hold high-level negotiations around trade issues, with US Treasury secretary Scott Bessent meeting Chinese vice-premier He Lifeng yesterday in Paris.
“The discussions are expected to focus on shifting US tariffs, the flow of Chinese-produced rare earth minerals and magnets to US buyers, the US’s high-tech export controls and Chinese purchases of US agricultural products,” Al Jazeera reported over the weekend.
Key dates for the diary
Monday: Canadian prime minister Mark Carney meets Starmer in London
Tuesday: Reeves delivers the 36th annual Mais economic lecture at Bayes Business School in London
Wednesday: Federal Reserve US interest rate decision announced
Thursday: UK interest rate decision announced by the Bank of England
Friday: South Korean K-pop band BTS releases its much-anticipated new album
Saturday: Nowruz (Iranian and Kurdish New Year)
Sunday: Arsenal play Manchester City in the Carabao Cup final at Wembley
