UK’s Plan for Digital Trade Deal with US Faces Resistance in Washington
The UK’s hopes to secure a digital trade deal with the US faced resistance during Prime Minister Rishi Sunak’s recent visit to the US to discuss stronger economic ties with President Joe Biden. In April 2020, the two countries agreed to deepen trade ties, including “harnessing the benefits of digital trade.” However, no negotiations have taken place on digital trade since then, as the Biden administration is slowing down prospects for the deal due to the opposition from lawmakers on the left side of the Democratic Party, who believe that it will benefit big tech companies. Tech industry insiders warned about this setback, as they had hoped that the two countries would strike a deal to boost digital transactions.
Other Updates:
– The EU is considering a mandatory ban on member states, including Huawei and other companies that pose a security risk in their 5G networks, after just one-third of countries in the EU blocked the Chinese firm from critical parts of their communications.
– The Bank of Canada announces its interest rate decision.
– Brown-Forman, Campbell’s, and Inditex report their results.
– The UK Advertising Standards Authority bans recent advertisements from Shell, Repsol, and Petronas for misleading the public on the climate and environmental benefits of the groups’ products.
The Big Read: Keir Starmer’s Moves
When Keir Starmer won the Labor leadership in 2020, he aimed to bring together the different factions of the British opposition party after it had suffered four electoral defeats in a row, two of them under Jeremy Corbyn. However, Starmer has carried out a radical realignment, sidelining the left and driving the party machine onto the political terrain it thinks can win an election. This move has been criticized for alienating many on the party’s left.
Chart of the Day
Big-money managers, including State Street, Fidelity, and Amundi, all trimmed positions in Nvidia earlier this year, missing out on the jaw-dropping rally that recently pushed its valuation to $1 trillion. They have spent the past few weeks catching up, racing to stockpile shares in the US company and betting on artificial intelligence.
Additional Piece
The growing resistance in Washington is a setback for the UK’s efforts to deepen digital trade ties with the US. Although the two countries agreed last year to an “ambitious roadmap” to deepen trade ties, including harnessing the benefits of digital trade, the prospects of striking a deal that would boost digital transactions have slowed down. The Biden administration’s reluctance to engage in digital trade negotiations due to opposition from lawmakers on the Democratic Party’s left-wing has disappointed tech industry insiders, who hoped for a comprehensive digital trade deal. Sabina Ciofu, head of the international policy program and trade at the TechUK lobby group, suggested that the US had not engaged substantially in the negotiations due to domestic political reasons, thereby slowing down progress. This setback may have broader implications for the UK, which is aiming to strengthen its trade ties in the post-Brexit era. The growing complications in digital trade negotiations signify the need for countries to broaden their trade relationships and explore alternatives to deepen their economies.
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Tech industry insiders have warned that the UK hopes to secure a quick deal to deepen digital trade ties with the US they met growing resistance in Washingtonon Prime Minister Rishi Sunak’s visit to discuss stronger economic relations with President Joe Biden.
In April last year, the two countries agreed to set out an “ambitious roadmap” to deepen trade ties, including “harnessing the benefits of digital trade”. The tech groups had hoped the two countries would strike a deal to boost digital transactions, though they have ruled out talks on a more comprehensive free trade deal for now.
But critics say the Biden administration is now slowing down prospects for a digital deal with the UK, as some lawmakers on the left side of the Democratic Party increasingly oppose provisions that would benefit big tech companies.
“The reality is that nothing has happened since the Aberdeen joint statement because the US has not been willing to engage substantively in digital trade negotiations for domestic political reasons,” said Sabina Ciofu, head of the international policy program and trade at the TechUK lobby group.
Here’s what else I’m keeping an eye on today:
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Economic data: The OECD releases its Economic Outlook, Germany releases April industrial production data and Halifax releases its UK House Price Index.
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Bank of Canada: The central bank announces its interest rate decision.
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Results: Brown-Forman report, Campbell’s and Inditex.
Five more top stories
1. The EU is considering a mandatory ban for member states using Huawei and other companies believed to pose a security risk in their 5G networks, after just a third of countries in the bloc blocked the Chinese firm from critical parts of their communications despite recommendations from Brussels. Read the full story.
2. A $1 trillion US government borrowing spree is set to further strain the country’s banking system, as the Treasury Department tries to rebuild its cash balance in the aftermath of the debt ceiling fight. That’s why traders and analysts are concerned.
3. Revised data will show that the eurozone economy has shrunk over the past two quarterstaking some of the shine off its recent resilience in the face of an energy and cost-of-living crisis. Here are the expectations of economists for the data that will be published tomorrow.
4. One of Canada’s largest wealth managers plans to double its headcount in London and investing billions in Britain, including in green projects, defying the prevailing gloom about the country’s attractiveness post-Brexit. Read more about the Alberta Investment Management Company’s vote of confidence in the UK.
5. The UK’s Advertising Standards Authority has banned recent advertisements from Shell, Repsol and Petronas for misleading the public about the climate and environmental benefits of the groups’ products in general by withholding “material information” about their most polluting operations. Read more about historic rulings.
The big read
Sir Keir Starmer’s moves — especially his treatment of his predecessor, Jeremy Corbyn — have alienated many on the party’s left © FT montage/Charlie Bibby
When he won the Labor leadership in 2020, Sir Keir Starmer insisted on bringing together the different factions of the British opposition party after it had suffered four electoral defeats in a row, two of them under Jeremy Corbyn. Instead, three years later, Starmer has carried out a radical realignmentsidelining the left and driving the party machine onto the political terrain it thinks can win an election.
We are also reading. . .
Chart of the day
Big-money managers, including State Street, Fidelity, Amundi and mutual funds, all trimmed positions in Nvidia earlier this year, missing out on the jaw-dropping rally that recently pushed its valuation to $1 trillion. . They’ve spent the last couple of weeks catching up, racing to stockpile shares in the US company it has become a bet on artificial intelligence.
Take a break from the news
Does anyone really need Apple’s impressive new “mixed reality” headset, the $3,500 Vision Pro? Technology correspondent Patrick McGee sets out to answer that question.
Further contributions by Benjamin Wilhelm and Gordon Smith
https://www.ft.com/content/d837b4c3-bdc3-4a34-b687-956bd0d7124b
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