UK should rebuild EU trade relations: Bank of England chief

UK should rebuild EU trade relations: Bank of England chief (Photo: AP)Britain should rebuild its trading relationship with the European Union , having struck a trade agreement with the United States, Bank of England governor Andrew Bailey said Friday.Bailey told the BBC that it "would be beneficial" for Britain to have "a more open economy to trade with the European Union".US President Donald Trump on Thursday unveiled a "breakthrough" trade agreement with Britain, the first deal with any country since he launched his global tariffs blitz.The EU remains Britain's trading partner despite Brexit, which saw Britain depart the EU in 2020.However, "there has been a fall-off in goods trade with the EU over recent years", Bailey told the broadcaster regarding Brexit's impact on Britain.Bailey added in the interview that he hoped Britain could "start to rebuild that relationship" with its neighbour.His comments come ahead of a EU-UK summit on May 19 due to reset ties with the 27-nation bloc.The US deal reduces tariffs on British cars and lifts them on steel and aluminium, while in return Britain will open up markets to US beef and other farm products.British Prime Minister Keir Starmer hailed it as a "historic day", although the agreement is thin on details and both sides said there would be more negotiations.Britain this week also struck a free-trade agreement with India , its biggest such deal since it voted to leave the European Union in 2016.

Source:The Times

May 09, 2025 12:33 UTC


FTA rolls out red carpet for Indian students as UK study benefits expand

Live EventsNew Delhi: Indian students considering higher studies abroad may find the UK more attractive now, as the new bilateral trade deal promises smoother visas, better job prospects, and lower financial hurdles. The India-UK Free Trade Agreement (FTA) signals a new era of opportunity for over 150,000 Indians already studying there and thousands more preparing to join them-with a bevy of indirect but substantial benefits.These include exemptions from social security contributions for temporary workers for three years; enhanced post-study job opportunities in services sectors like IT, educational, financial and professional services; mutual recognition of qualifications; and easier intra-company transfers, experts said.The FTA commits to reducing paperwork and streamlining visa procedures , and will also help in mutual recognition of qualifications-especially in fields like law, architecture, and accounting, said Akshay Chaturvedi, founder and CEO of study abroad platform Leverage Edu. (Join our ETNRI WhatsApp channel for all the latest updates)"Expanded quotas and faster visa processing for Indian professionals could help students move into full-time roles more smoothly after graduation," he said.This will help those in sectors like IT, finance, healthcare, and engineering, said Chaturvedi.Increasing presence of Indian companies in the UK, too, will help. "While tuition fees may remain high, the FTA could lower indirect costs and make UK education more affordable over time," said Mary Gogoi, head of admissions at eduVelocity Global.Adarsh Khandelwal, cofounder of Collegify, said: "Even marginal financial relief, enhanced scholarships, or easier work rights post study can significantly change affordability and access. "The tuition fees in the UK range anywhere from £10,000 to £38,000 annually, he said.Sonal Kapoor, global chief business officer of fintech platform Prodigy Finance, said any direct impact on tuition fees will depend on future policy details.With the FTA, the UK may now offer Indian students not just world-class education, but a launchpad for a global career as well.

Source:The Times

May 09, 2025 12:20 UTC


US automakers blast Trump's UK trade deal

The Trump administration's latest trade deal with Britain unfairly penalizes US automakers that have partnered with Canada and Mexico, a trade group representing Detroit automakers said Thursday.In a sharply-worded statement, the American Automotive Policy Council (AAPC) said the US-UK trade deal "hurts American automakers, suppliers, and auto workers," according to the group's president Matt Blunt.The deal unveiled Thursday between US President Donald Trump and British Prime Minister Keir Starmer lowers the tariff on British vehicles to 10 percent from 27.5 percent on the first 100,000 cars shipped from Britain to the United States.In contrast, AAPC members Ford , General Motors Company and Jeep-maker Stellantis now face import tariffs of 25 percent on autos assembled in Canada and Mexico.The Detroit companies organized their supply chains around the 2020 US-Mexico-Canada Agreement (USMCA), which Trump negotiated in his first term. "We are disappointed that the administration prioritized the UK ahead of our North American partners," Blunt said. "Under this deal, it will now be cheaper to import a UK vehicle with very little US content than a USMCA compliant vehicle from Mexico or Canada that is half American parts. "Trump last week unveiled some steps to lessen the impact of tariffs on imported auto parts in moves applauded by GM and Ford.The Trump administration will allow companies that assemble autos in the United States to deduct a fraction of the cost of imported parts for two years to give the industry enough time to relocate supply chains.In another change, the administration said companies wouldn't face a 25 percent levy on imported steel or aluminum in addition to a 25 percent levy for an imported vehicle.But last weeks' changes did not soften the 25 percent tariff on imported finished autos.The Trump administration plans to negotiate separate agreements with Japan, South Korea and the European Union, all of which export finished autos to the United States. "We hope this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors," Blunt said.

Source:The Times

May 08, 2025 22:19 UTC


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