London Daily

Focus on the big picture.
Friday, Mar 31, 2023

Rishi Sunak rips up Boris Johnson’s trade deal playbook

Rishi Sunak rips up Boris Johnson’s trade deal playbook

New prime minister is opting to wait for more wins from trade talks rather than the headline-grabbing deadlines favored by Boris Johnson and Liz Truss.

Rishi Sunak is tearing up his predecessor’s trade rulebook by prioritizing depth over speed in the country’s post-Brexit deals.

The U.K. prime minister is avoiding the headline-grabbing deadlines favored by both Boris Johnson and Liz Truss, and is opting instead to wait for more wins from trade talks, according to Britain’s allies and people close to negotiations.

The new strategy is being brought into sharp focus in talks with India, people briefed on the negotiations say. Sunak — who is expected to hold his first face-to-face talks with Indian Prime Minister Narendra Modi on the sidelines the G20 summit Wednesday — is holding out for an agreement that delivers more for Britain’s largest sector: services.

Sunak is also taking his time when it comes to joining the 11-nation Indo-Pacific trade pact CPTPP, say some of Britain’s trade allies. Accession to the bloc and a final deal with India aren’t expected now until early to mid-2023, sailing past deadlines set by Sunak’s predecessors.

When it comes to the India deal, Sunak has his own reasons for taking things slow, and may face more scrutiny of his approach than either Johnson or Truss as the U.K.’s first British-Indian prime minister, and with family ties to an Indian IT services empire.

He will, said a person briefed on the U.K.-India talks, “need to avoid accusations that he has signed a deal that favors India, so will negotiate harder and possibly longer to get a deal that is balanced and which he can defend as pro-U.K.”

As a former top finance minister and an ex-Goldman Sachs banker, Sunak is also planning to do more for Britain’s financial services and its services sector generally, the same person added. In the run-up to a now-abandoned Diwali deal deadline set by Johnson and Modi, services firms had been increasingly alarmed at the state of the talks.

Winning big for the services sector will be no easy task, however, with provisions that boost the sector seen as most difficult to get in a deal because they would need India to drop protections on personal data, and require tricky joint ventures and reform of federal regulations.

The Indian government “see a constructive friend and partner” in Sunak, the person said, “but recognize that he will negotiate the best deal possible for the U.K.”


‘One-sided’


Britain has gotten used to signing its deals at breakneck speed since gaining the right to set its own trade policy post-Brexit.

As trade secretary in the Johnson administration, Truss sealed from-scratch free-trade deals with Australia and New Zealand, and expanded a pact with Japan. In each case, negotiations took more or less a year. For most countries, trade negotiations typically take several years. But the flurry of activity came as ministers worked to score deals in record time in order to prove a Brexit dividend.

As trade secretary in the Johnson administration, Liz Truss sealed from-scratch free-trade deals with Australia and New Zealand


The latest British prime minister has already made it clear he has reservations about the U.K.’s approach to date.

Over the summer, Sunak, who represents a rural constituency, branded the U.K.’s agreements with Australia and New Zealand "one-sided." Britain's farming sector has expressed concerns over both deals, amid fears cheaper imports will undercut domestic producers. The U.K. insists safeguards within the deal offer protection to the industry.

“It’s not rocket science … our farming communities are an incredibly important part of our country," Sunak said. He also argued the U.K. "shouldn't be rushing to sign trade deals as quickly as possible."

It’s already been something of a rollercoaster ride for the India deal, seen by ministers as a totemic post-Brexit win for Britain if it gets over the line.

Truss, Sunak’s immediate predecessor who lasted just 45 days in office, was on track to strike a pact with India by the Diwali deadline. But she resigned just days before it could be struck. Britain’s political upheaval and comments by Home Secretary Suella Braverman warning about Indian immigration threw talks off course.

Services firms are now being told to expect more from the India agreement. Trade Minister Greg Hands and Britain’s chief negotiator on the deal with India, Harjinder Kang, told attendees at a London conference late last month that negotiators are keen to include provisions on establishing data flows and to allow British services firms, such as legal and financial services, to operate in India without the need for a local partner.

“I’m hopeful that we will get a better free trade agreement by not rushing it,” said the outgoing Lord Mayor of the City of London Vincent Keaveny, pointing out “there was always a danger” elements would be left out of the deal as a result of the Diwali deadline.

Trade Secretary Kemi Badenoch defended the Diwali deadline at the Tory Party conference in October


Negotiators now “have a better chance of getting progress with India on services,” he said, including on thorny issues like the mutual recognition of professional qualifications, and access to India’s market for the British legal sector.

“He knows the City, he understands the City, he knows the importance of the City," Keaveny said of Sunak. “I would hope that coming with the background that he does, he will understand that promoting the sector, working with us on the priorities for the sector, will be important for the good of the country."

Dominic Johnson, a financier who briefly served as Truss’ investment minister, told POLITICO that the deadline-setting approach to talks tends to weaken Britain’s position.

"I don't know why you'd want to tie yourself to a date like that," said Johnson, a member of Britain’s House of Lords. It is, he argued, “never helpful to give yourself an artificial timeline, because then the person you're negotiating with knows you've got an unnecessary constraint around coming to a conclusion, and you want as much time as it takes.”

Trade Secretary Kemi Badenoch defended the Diwali deadline at the Tory Party conference in October, insisting it was “not arbitrary” and “set quite a while ago,” despite the talks kicking off less than 12 months ago.


Getting MPs on side


While under Sunak, Badenoch won’t be focussed on securing trade deals as quickly as the Truss administration favored, said Kathryn Watson, an expert in trade policy at the consultancy Flint Global, “the U.K.’s FTAs are one of the tangible ‘Brexit benefits’ that voters are aware of and point to.”

The new government will still “want to get deals done with more economically consequential markets like India,” she said, “to show the economic benefit to U.K. business ahead of the next general election.”

Nevertheless, one person who knows the new PM well said Sunak is “a man who gets into the detail, making sure we get things right.”

With the Diwali deadline blown, the U.K.'s Department for International Trade officially says it’s still sticking to other deadlines in place, including getting the U.K. signed up to CPTPP by the end of 2022 — a target set when Truss was trade chief.

Yet Sunak’s focus is first on calming the political and economic instability in the U.K. so that he can get restive Tory MPs on side to support CPTPP accession, said a diplomat from one of Britain’s trade allies.

If he has to wait until later in 2023, they said, “that's fine.”

Newsletter

Related Articles

London Daily
Close
0:00
0:00
Russia arrested an American reporter for the Wall Street Journal on espionage charges
You Are So Beautiful
Don’t Dismiss China’s Peacemaking Bid
Postmodern Jukebox European Tour Version
Austrian Parliament members walk out when Volodymyr Zelensky begins speaking.
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Father obliterates council members following viral TikTok of biological male masturbating in women’s bathroom..
Sattahip Motor Show 20
Tsai Ing-wen received a "warm welcome" from the Chinese people in the US.
SONATE AU CLAIR DE LUNE - Moonlight sonata
EU's von der Leyen: "We know this is an era where we rely on one single supplier. China. 98% of our rare earth supply."
A kiss to build a dream on
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Mean Blues
Nashville style execution
La Chansonnette
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
Pattaya Addicts
Former Starbucks CEO Howard Schultz:
Franz Liszt - Liebestraum - Love Dream
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
Dream a little dream of me
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
Unchained Melody sung like you've NEVER heard!
This is how an electric car saves all the energy that he would have spent if he had lived 50 years longer.
Dave Brubeck - Take Five
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Social Media censoring users for saying the true
Rondo Alla Turca
Smart Iranian fashion designer teaching dummy TV anchors lesson about reality
Kiss of fire
AMERICA, 2023
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Israel Cachao López - Guajira Clásica
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
Strauss - Radetzky March - Karajan
AOC explains why she opposes banning TikTok
La vie en rose
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Orlando Cachaito Lopez Redencion
Gordon Moore, a co-founder of Intel Corporation, died at 94
Edith Piaf - NON, JE NE REGRETTE RIEN
Powell: Silicon Valley Bank was an 'outlier'
RADETZKY MARCH-2008-Wien, New Year Concert
Bordeaux town hall set on fire in France pro democracy protest
Only you (And you alone)
Police violence in Paris
Strangers In The Night
Paris: Some of the police are stepping down and showing solidarity with the protesters.
Charles Aznavour - La Boheme
Donald Trump arrested – Twitter goes wild with doctored pictures
Summer time
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Aux Champs Elysees
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
La Mer (Beyond the Sea) – Avalon Jazz Band
Paris Rioting vs Macron anti democratic law
She
'Sexual Fantasy' Assignment At US School Outrages Parents
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Orbán Viktor: the restructuring of the power relations in the whole of Europe is taking place
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Credit Suisse to borrow $54 billion from Swiss central bank
Radiohead - Creep
The BBC problem about China
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
Strikes-Hit UK Pledges 94 Billion Euros In Cost-Of-Living Budget
Perhaps, Perhaps, Perhaps - Multi-Couples
Russian Hackers Preparing New Cyber Assault Against Ukraine
Pentatonix Havana
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
Paula Cole - Autumn Leaves
UK face biggest fall in spending power for 70 years
Oscar Benton Bensonhurst Blues
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
OH NANANA vs ABUSADAMENTE
If this was in Tehran, Moscow or Hong Kong
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Announcing GPT-4
NIGHTWISH - The Phantom Of The Opera
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Motorshow 2016 Tanjay Negros Oriental
Drew Barrymore
Monica Bellucci - Ti Amo
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
Michael Jackson - Billie Jean Milena The Voice France 2018
A brief banking situation report
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×