Tag - Trade UK

Greenland takes its pleas to UK parliament
LONDON — The U.K. government must “dare to have principles” and help Greenland repel threats by Donald Trump, a senior minister in Greenland’s government told lawmakers in London.  Speaking after a briefing with MPs in the U.K. parliament Tuesday, Greenland’s Business and Energy Minister Naaja Nathanielsen said: “Dialogue is really, really what is needed at this point. And … even though problems in this world [are] complex, this should not be a reason not to go into these complex dialogues. They can be solved through dialogue instead of violence and force.”  Nathanielsen held the meetings amid growing pressure from the White House, where Trump is ramping up his threats to take control of Greenland — a minerals-rich, semi-autonomous territory within Denmark — including by military force.  The region is essential to securing U.S. security against threats from Russia and China, Trump claims. The U.S. will take over Greenland “the easy way” or “the hard way,” he said last week.  Nathanielsen said: “We feel betrayed. We feel that the rhetoric is offensive, as we have stated many times before — but also bewildering, because we have done nothing but support the notion that Greenland is a part of the American national self-interest.”  Nathanielsen made her plea to politicians in London after Denmark warned U.S. aggression would cripple the NATO military alliance. The leaders of Denmark and Greenland both say Greenland is “not for sale”.  DEAR KEIR Asked about the message she was bringing to U.K. politicians and Prime Minister Keir Starmer, Nathanielsen said: “To insist on having the dialogue, even though it’s difficult, to dare to have principles and belief in international law. I think we will all be asked about that in the next couple of years.”  She said she would “like to repeat my gratitude” for Starmer’s support of Greenland, and said the U.K. must “insist upon the global community upholding international law” and “stress the relevance of NATO as a relevant and important alliance.” Starmer has warned Trump that Greenland’s future must be decided by Denmark and Greenland alone. Danish PM Mette Frederiksen has told the U.S. it has no right to the Arctic territory.  But the U.K. leader is also keen not to get into fights with Trump on too many fronts, at a time when his government is trying to both secure a favorable U.S. trade deal and influence the White House’s approach to striking peace between Russia and Ukraine.  Trump says that securing Greenland is essential for bolstering U.S. security. But Nordic governments have rejected his claims that Chinese and Russian vessels are operating in waters near Greenland.   Nathanielsen said Greenland did not “detect an actual threat” but was “quite content” with increased monitoring around the Arctic.  Leaders in Greenland are clear that “we have no intention of becoming American” and are “quite happy with being part of the Kingdom of Denmark,” she stressed.   She would not be drawn on whether Greenland would expect backing from NATO allies, including the U.K. if the U.S. were to invade Greenland.  Keir Starmer has warned Trump that Greenland’s future must be decided by Denmark and Greenland alone. | Pool Photo by Ludovic Marin via EPA “If this scenario was to happen, I think everybody in this room and everybody in your countries would have to figure out: What is this new world order about?” she said.   In that scenario “we would all be under attack,” she added.  END OF APPEASEMENT One British MP who helped organized Nathanielsen’s visit said it was time for the U.K. government to take a firmer line on Trump’s aggression in the region.  “I have a huge sympathy, because I know and I can understand it. If you’re sitting in a foreign office right now, then this is a problem which would keep you awake at night,” said Brendan O’Hara, a Scottish National Party MP and chair of the all-party parliamentary group on Greenland.   But the time for “trying to keep this guy [Trump] on board” has gone, O’Hara added.  “I don’t blame them for trying. But when you appease somebody to this extent, and then they still openly talk about invading a NATO ally — it’s incredible,” he said.   Dywne Ryan Menezes, founder of the Polar Research and Policy Initiative think tank, which also helped organize Tuesday’s briefing, said the U.K. could do more to show its support for Greenland.   “I’ve been saying for years now: With Greenland, we can’t see it as a small country. 
It might be a small country population-wise, but it is a geopolitical giant that’s getting hotter by the day,” he said.  Menezes urged ministers to prioritize free trade talks with Greenland. “It’s one thing we can do to demonstrate that, you know, we take it seriously. It is action, and not just words.”  Nathanielsen said she was meeting a trade minister from the Labour government, Chris Bryant, later on Tuesday, as part of “very early discussions” on a possible free trade agreement between the two countries.  “Of course, when hopefully all of this cools down a bit, that you continue your collaboration investments in Greenland, we are quite happy about your partnerships,” she added.  BIG DAYS But the future of Greenland, she acknowledged, may not lie in its own hands. Foreign ministers from Greenland and Denmark are set to meet U.S. Vice President JD Vance and Secretary of State Marco Rubio in Washington Wednesday. Greenland officials hope the meeting will allow them a better understanding of the “actual wishes from the American side,” Nathanielsen said.   Asked whether a deal proposing U.S. control should be put to a vote inside Greenland, she agreed this was essential.   “I think we should be able to have a say ourselves in the future of our lives. For others, this might be a piece of land, but for us it’s home.” 
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Military
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Energy and Climate
Trump threatens 25 percent tariff on ‘any country’ that trades with Iran
President Donald Trump threatened Monday to impose a 25 percent tariff on “any country” doing business with Iran, potentially affecting U.S. trade with China, India, the United Arab Emirates, the European Union and others. “Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America,” Trump wrote in a post on Truth Social. “This Order is final and conclusive. Thank you for your attention to this matter!” However, Trump does not appear to have issued an executive order to back up his statement as of late Monday afternoon. A White House spokesperson also did not immediately respond to questions about Trump’s social media post. The threat follows reports from human rights groups that hundreds of people have been killed in a brutal crackdown on protests against the Iranian regime that intensified over the weekend. Trump has previously warned that the U.S. could intervene if Iran’s government uses violence against the protesters. “For President Trump this seems like a pretty mild response to a very significant situation in Iran and so this will probably disappoint many in the Iranian American community,” said Michael Singh, former senior director for Middle East affairs at the National Security Council under President George W. Bush, now the managing director at the Washington Institute for Near East Policy. “The problem is that we have sanctions in place against Iran that are quite tough, but they’re not being enforced — I mean Iran is selling lots of oil, and so I think the question will be what’s new here and is it going to be enforced, unlike the other sanctions that are already in place.” The U.S. has little direct trade with Iran because of its steep sanctions on the country, imposed in recent decades to punish Tehran for its nuclear program. Last year, it imported just $6.2 million worth of goods from the country and exported slightly more than $90 million worth of goods to Iran in return, according to Commerce Department statistics. However, the United States does substantial trade with countries that do business with Iran, including China, India, the United Arab Emirates and the EU. Earlier this year, Trump threatened to impose tariffs on any country that buys Russian oil but so far has only taken that action against India, sparing China in the process. He also threatened in March to impose a 25 percent tariff on any country that buys oil or gas from Venezuela, but doesn’t appear to have followed through on that threat. Phelim Kine contributed to this report.
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Will the UK actually ban Elon Musk’s X?
LONDON — U.K. ministers are warning Elon Musk’s X it faces a ban if it doesn’t get its act together. But outlawing the social media platform is easier said than done. The U.K.’s communications regulator Ofcom on Monday launched a formal investigation into a deluge of non-consensual sexualized deepfakes produced by X’s AI chatbot Grok amid growing calls for action from U.K. politicians. It will determine whether the creation and distribution of deepfakes on the platform, which have targeted women and children, constitutes a breach of the company’s duties under the U.K.’s Online Safety Act (OSA).   U.K. ministers have repeatedly called for Ofcom, the regulator tasked with policing social media platforms, to take urgent action over the deepfakes. U.K. Technology Secretary Liz Kendall on Friday offered her “full support” to the U.K. regulator to block X from being accessed in the U.K., if it chooses to. “I would remind xAI that the Online Safety Act Includes the power to block services from being accessed in the U.K., if they refuse to comply with U.K. law. If Ofcom decide to use those powers they will have our full support,” she said in a statement. The suggestion has drawn Musk’s ire. The tech billionaire branded the British government “fascist” over the weekend, and accused it of “finding any excuse for censorship.”   With Ofcom testing its new regulatory powers against one of the most high-profile tech giants for the first time, it is hard to predict what happens next. NOT GOING NUCLEAR — FOR NOW   Ofcom has so far avoided its smash-glass option. Under the OSA it could seek a court order blocking “ancillary” services, like those those processing subscription payments on X’s behalf, and ask internet providers to block X from operating in the U.K.   Taking that route would mean bypassing a formal investigation, but that is generally considered a last resort according to Ofcom’s guidance. To do so, Ofcom would need to prove that risk of harm to U.K. users is particularly great.  Before launching its investigation Monday, the regulator made “urgent contact” with X on Jan. 5, giving the platform until last Friday to respond. Ofcom stressed the importance of “due process” and of ensuring its investigations are “legally robust and fairly decided.”   LIMITED REACH   The OSA only covers U.K. users. It’s a point ministers have been keen to stress amid concerns its interaction with the U.S. First Amendment, which guarantees free speech, could become a flashpoint in trade negotiations with Washington. It’s not enough for officials or ministers to believe X has failed to protect users generally.   The most egregious material might not even be on X. Child sexual abuse charity the Internet Watch Foundation said last week that its analysts had found what appeared to be Grok-produced Child sexual abuse material (CSAM) on a dark web forum, rather than X itself — so it’s far from self-evident that Ofcom taking the nuclear option against X would ever have been legally justified.   X did not comment on Ofcom’s investigation when contacted by POLITICO, but referred back to a statement issued on Jan. 4 about the issue of deepfakes on the platform. “We take action against illegal content on X, including Child Sexual Abuse Material (CSAM), by removing it, permanently suspending accounts, and working with local governments and law enforcement as necessary. Anyone using or prompting Grok to make illegal content will suffer the same consequences as if they upload illegal content,” the statement said. BIG TEST   The OSA came into force last summer, and until now Ofcom’s enforcement actions have focused on pornography site providers for not implementing age-checks.  Online safety campaigners have argued this indicates Ofcom is more interested in going after low-hanging fruit than challenging more powerful tech companies. “It has been striking to many that of the 40+ investigations it has launched so far, not one has been directed at large … services,” the online safety campaign group the Molly Rose Foundation said in September.   That means the X investigation is the OSA’s first big test, and it’s especially thorny because it involves an AI chatbot. The Science, Innovation and Technology committee wrote in a report published last summer that the legislation does not provide sufficient protections against generative AI, a point Technology Secretary Liz Kendall herself conceded in a recent evidence session.  POLITICAL RISKS  If Ofcom concludes X hasn’t broken the law there are likely to be calls from OSA critics, both inside and outside Parliament, to return to the drawing board. It would also put the government, which has promised to act if Ofcom doesn’t, in a tricky spot.  The PM’s spokesperson on Monday described child sexual abuse imagery as “the worst crimes imaginable.” Ofcom could also conclude X has broken the law, but decide against imposing sanctions, according to its enforcement guidance. The outcome of Ofcom’s investigation will be watched closely by the White House and is fraught with diplomatic peril for the U.K. government, which has already been criticized for implementing the new online safety law by Donald Trump and his allies. Foreign Secretary David Lammy raised the Grok issue with U.S. Vice President JD Vance last week, POLITICO reported.  But other Republicans are readying for a geopolitical fight: GOP Congresswoman Anna Paulina Luna, a member of the U.S. House foreign affairs committee, said she was drafting legislation to sanction the U.K. if X does get blocked. 
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Negotiations
Von der Leyen to sign Mercosur deal Saturday in Paraguay
BRUSSELS — The EU and Mercosur will sign their long-awaited trade agreement on Saturday, with European Commission President Ursula von der Leyen traveling to Paraguay on Jan. 17 for the signing ceremony. Commission spokesperson Thomas Regnier confirmed von der Leyen’s travel plans to POLITICO. She will be joined by European Council President António Costa, his cabinet confirmed. The trip comes after a majority of EU member countries on Friday voted in favor of signing the deal. The EU-Mercosur deal is set to create the world’s largest free-trade area, covering some 700 million people. From Brussels’ perspective, the agreement is a major geopolitical win in light of China’s rising share in trade and influence in Latin America and U.S. President Donald Trump’s tariff policies. Aside from Paraguay, the Mercosur bloc consists of Argentina, Brazil and Uruguay.
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Americas
Ukraine is discussing trade deal with US, Zelenskyy says
Kyiv is in talks with the United States about a possible free-trade agreement, as Ukraine seeks to entice a reluctant Washington to provide firm security guarantees, Ukrainian President Volodymyr Zelenskyy said. Such a deal would involve tariff-free trade with the U.S. and would give Ukraine “very serious cards,” Zelenskyy said in an interview with Bloomberg published late Friday.  He has not yet discussed it directly with U.S. President Donald Trump, Zelenskyy said, adding that he expects to meet with Trump either in the U.S. or at the Davos conference in Switzerland, which starts on Jan. 19.  Prospects of a trade deal come as all sides start to consider more seriously how to end the war in Ukraine and how to ensure peace in the future. Europe and the U.S. presented a detailed plan for Ukraine in Paris earlier this week, including security guarantees with American backing and a promise to deploy British and French troops after a ceasefire.  But Washington did not sign on to join a multinational force for Ukraine, raising concerns about its level of commitment. The offer of a free-trade deal could act as an additional incentive for the U.S. to remain committed to protecting Ukraine after the end of the war. Zelenskyy said in the Bloomberg interview that he wants specific commitments from Washington. “I don’t want everything to end up in them merely promising to react,” he said. “I really want something more concrete.” Zelenskyy said his negotiator, Rustem Umerov, had a call on Friday with Trump’s special envoys Steve Witkoff and Jared Kushner, and that U.S. representatives have been in contact with Russia recently in “some kind of format.” Ukraine has given its views on territorial proposals, which the U.S. side will share with Russia for its own responses, Zelenskyy said.  Ukraine also is considering a plan, proposed by the U.S., to create a buffer zone between the two sides after troops pull back. “The format is difficult but fair,” Zelenskyy said. Zelenskyy added that he is not opposed to European leaders talking to Russia. Italian Prime Minister Giorgia Meloni on Friday joined French President Emmanuel Macron in calling for dialogue with Moscow. 
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UK’s deputy prime minister raises X deepfake deluge with JD Vance
LONDON – Britain’s Deputy Prime Minister David Lammy raised the recent flood of AI-generated sexualized images of women and children on X with JD Vance when the two met in Washington yesterday, two people familiar with the meeting told POLITICO. One person familiar with the meeting said that Lammy raised the issue with Vance, explained the U.K.’s position, and repeated what Prime Minister Keir Starmer said about it. A second person familiar with the meeting said it had gone well, and that Vance seemed receptive to Lammy’s points. Both people were granted anonymity to speak freely about the meeting, which they weren’t authorized to discuss publicly. Vance’s team didn’t immediately respond to requests for comment. A U.K. government spokesperson declined to comment. The flood of nonconsensual images on X, created using the platform’s generative AI chatbot feature Grok, attracted the attention of the U.K.’s media regulator Ofcom, which said it made “urgent contact” with X on Monday to determine whether an investigation under the U.K.’s Online Safety Act is warranted. On Friday an Ofcom spokesperson said: “We urgently made contact on Monday and set a firm deadline of today to explain themselves, to which we have received a response. We’re now undertaking an expedited assessment as a matter of urgency and will provide further updates shortly.” The U.S. administration has previously criticized the U.K.’s online safety laws, saying they limit freedom of expression. The U.K. government said this week that Ofcom had its full backing, and Prime Minister Keir Starmer said on Thursday: “It’s disgraceful, it’s disgusting, and it’s not to be tolerated. X has got to get a grip of this, and Ofcom has our full support to take action in relation to this.” “This is wrong, it’s unlawful, we’re not going to tolerate it. I’ve asked for all options to be on the table,” Starmer said. In a statement issued on Sunday, X said: “We take action against illegal content on X, including Child Sexual Abuse Material (CSAM), by removing it, permanently suspending accounts, and working with local governments and law enforcement as necessary. Anyone using or prompting Grok to make illegal content will suffer the same consequences as if they upload illegal content.” On Friday X restricted the function which allows users to produce AI-generated material so that only paying subscribers can access it.  X said in a statement that limiting the feature to paid subscribers “helps ensure responsible use while we continue refining things.” The U.K. government disagrees. “That simply turns an AI feature that allows the creation of unlawful images into a premium service,” a spokesperson for the prime minister said on Friday. But it’s not only AI-generated images on X that are the problem, children’s protection watchdog the Internet Watch Foundation said on Wednesday it had found evidence of Grok generating child sexual abuse material (CSAM) which was being circulated on a dark web forum. X’s CEO and owner, tech billionaire Elon Musk, has previously attacked the U.K.’s Labour government and was once a close adviser of President Donald Trump. Although Musk feuded with the Trump administration in the summer, by October there were signs his relationship with Trump was improving, and The Washington Post reported last month that Vance brokered a truce between Musk and Trump. Emilio Casalicchio contributed reporting.
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Meet the Labour tribes trying to shape Britain’s Brexit reset
LONDON — Choosing your Brexit camp was once the preserve of Britain’s Tories. Now Labour is joining in the fun.  Six years after Britain left the EU, a host of loose — and mostly overlapping — groupings in the U.K.’s ruling party are thinking about precisely how close to try to get to the bloc. They range from customs union enthusiasts to outright skeptics — with plenty of shades of grey in between. There’s a political urgency to all of this too: with Prime Minister Keir Starmer tanking in the polls, the Europhile streak among many Labour MPs and members means Brexit could become a key issue for anyone who would seek to replace him. “The more the screws and pressure have been on Keir around leadership, the more we’ve seen that play to the base,” said one Labour MP, granted anonymity like others quoted in this piece to speak frankly. Indeed, Starmer started the new year explicitly talking up closer alignment with the European Union’s single market. At face value, nothing has changed: Starmer’s comments reflect his existing policy of a “reset” with Brussels. His manifesto red lines on not rejoining the customs union or single market remain. Most of his MPs care more about aligning than how to get there. In short, this is not like the Tory wars of the late 2010s. Well, not yet. POLITICO sketches out Labour’s nascent Brexit tribes. THE CUSTOMS UNIONISTS  It all started with a Christmas walk. Health Secretary Wes Streeting told an interviewer he desires a “deeper trading relationship” with the EU — widely interpreted as hinting at joining a customs union. This had been a whispered topic in Labour circles for a while, discussed privately by figures including Starmer’s economic adviser Minouche Shafik. Deputy Prime Minister David Lammy said last month that rejoining a customs union is not “currently” government policy — which some took as a hint that the position could shift. But Streeting’s leadership ambitions (he denies plotting for the top job) and his willingness to describe Brexit as a problem gave his comments an elevated status among Labour Europhiles.  “This has really come from Wes’s leadership camp,” said one person who talks regularly to No. 10 Downing Street. Naomi Smith, CEO of the pro-EU pressure group Best for Britain, added any Labour leadership contest will be dominated by the Brexit question. MPs and members who would vote in a race “are even further ahead than the public average on all of those issues relating to Europe,” she argued. Joining a customs union would in theory allow smoother trade without returning to free movement of people. But Labour critics of a customs union policy — including Starmer himself — argue it is a non-starter because it would mean tearing up post-Brexit agreements with other countries such as India and the U.S. “It’s just absolutely nonsense,” said a second Labour MP.    Keir Starmer has argued that the customs union route would mean hard conversations with workers in the car industry after Britain secured a U.K.-U.S. tariff deal last summer. | Colin McPherson/Getty Images And since Streeting denies plotting and did not even mention a customs union by name, the identities of the players pushing for one are understandably murky beyond the 13 Labour MPs who backed a Liberal Democrat bill last month requiring the government to begin negotiations on joining a bespoke customs union with the EU. One senior Labour official said “hardly any” MPs back it, while a minister said there was no organized group, only a vague idea. “There are people who don’t really know what it is, but realize Brexit has been painful and the economy needs a stimulus,” they said. “And there are people who do know what this means and they effectively want to rejoin. For people who know about trade, this is an absolute non-starter.” Anand Menon, director of the UK in a Changing Europe think tank, said a full rejoining of the EU customs union would mean negotiating round a suite of “add-ons” — and no nations have secured this without also being in the EU single market. (Turkey has a customs union with the EU, but does not benefit from the EU’s wider trade agreements.) “I’m not convinced the customs union works without the single market,” Menon added.  Starmer has argued that the customs union route would mean hard conversations with workers in the car industry after Britain secured a U.K.-U.S. tariff deal last summer, a person with knowledge of his thinking said. “When you read anything from any economically literate commentator, the customs union is not their go-to,” added the senior Labour official quoted above. “Keir is really strong on it. He fully believes it isn’t a viable route in the national interest or economic interest.” THE SINGLE MARKETEERS (A.K.A. THE GOVERNMENT) Starmer and his allies, then, want to park the customs union and get closer to the single market.  Paymaster General Nick Thomas-Symonds has long led negotiations along these lines through Labour’s existing EU “reset.” He and Starmer recently discussed post-Brexit policy on a walk through the grounds of the PM’s country retreat, Chequers. Working on the detail with Thomas-Symonds is Michael Ellam, the former director of communications for ex-PM Gordon Brown, now a senior civil servant in the Cabinet Office. Ellam is “a really highly regarded, serious guy” and attends regular meetings with Brussels officials, said a second person who speaks regularly to No. 10.   A bill is due to be introduced to the U.K. parliament by summer which will allow “dynamic” alignment with new EU laws in areas of agreement. Two people with knowledge of his role said the bill will be steered through parliament by Cabinet Office Minister Chris Ward, Starmer’s former aide and close ally, who was by his side when Starmer was shadow Brexit secretary during the “Brexit wars” of the late 2010s. Starmer himself talked up this approach in a rare long-form interview this week with BBC host Laura Kuenssberg, saying: “We are better looking to the single market rather than the customs union for our further alignment.” While the PM’s allies insist he simply answered a question, some of his MPs spy a need to seize back the pro-EU narrative. The second person who talks regularly to No. 10 argued a “relatively small … factional leadership challenge group around Wes” is pushing ideas around a customs union, while Starmer wants to “not match that but bypass it, and say actually, we’re doing something more practical and potentially bigger.”  A third Labour MP was blunter about No. 10’s messaging: “They’re terrified and they’re worrying about an internal leadership challenge.” Starmer’s allies argue that their approach is pragmatic and recognizes what the EU will actually be willing to accept. Christabel Cooper, director of research at the pro-Labour think tank Labour Together — which plans polling and focus groups in the coming months to test public opinion on the issue — said: “We’ve talked to a few trade experts and economists, and actually the customs union is not all that helpful. To get a bigger bang for your buck, you do need to go down more of a single market alignment route.”  Stella Creasy argued that promising a Swiss-style deal in Labour’s next election manifesto (likely in 2029) would benefit the economy — far more than the “reset” currently on the table. | Nicola Tree/Getty Images Nick Harvey, CEO of the pro-EU pressure group European Movement UK, concurred: “The fact that they’re now talking about a fuller alignment towards the single market is very good news, and shows that to make progress economically and to make progress politically, they simply have to do this.”  But critics point out there are still big questions about what alignment will look like — or more importantly, what the EU will go for.  The bill will include areas such as food standards, animal welfare, pesticide use, the EU’s electricity market and carbon emissions trading, but talks on all of these remain ongoing. Negotiations to join the EU’s defense framework, SAFE, stalled over the costs to Britain. Menon said: “I just don’t see what [Starmer] is spelling out being practically possible. Even at the highest levels there has been, under the Labour Party, quite a degree of ignorance, I think, about how the EU works and what the EU wants.   “I’ve heard Labour MPs say, well, they’ve got a veterinary deal with New Zealand, so how hard can it be? And you want to say, I don’t know if you’ve noticed, but New Zealand doesn’t have a land border with the EU.”  THE SWISS BANKERS Then there are Europhile MPs, peers and campaigners who back aligning with the single market — but going much further than Starmer.  For some this takes the form of a “Swiss-style” deal, which would allow single market access for some sectors without rejoining the customs union.   This would plough through Starmer’s red lines by reintroducing EU freedom of movement, along with substantial payments to Brussels.  But Stella Creasy, chair of the Labour Movement for Europe (LME), argued that promising a Swiss-style deal in Labour’s next election manifesto (likely in 2029) would benefit the economy — far more than the “reset” currently on the table. She said: “If you could get a Swiss-style deal and put it in the manifesto … that would be enough for businesses to invest.”  Creasy said LME has around 150 MPs as members and holds regular briefings for them. While few Labour MPs back a Swiss deal — and various colleagues see Creasy as an outlier — she said MPs and peers, including herself, plan to put forward amendments to the dynamic alignment bill when it goes through parliament.  Tom Baldwin, Starmer’s biographer and the former communications director of the People’s Vote campaign (which called for a second referendum on Brexit), also suggests Labour could go further in 2029. “Keir Starmer’s comments at the weekend about aligning with — and gaining access to — the single market open up a whole range of possibilities,” he said. “At the low end, this is a pragmatic choice by a PM who doesn’t want to be forced to choose between Europe and America.   “At the upper end, it suggests Labour may seek a second term mandate at the next election by which the U.K. would get very close to rejoining the single market. That would be worth a lot more in terms of economic growth and national prosperity than the customs union deal favoured by the Lib Dems.”  A third person who speaks regularly to No. 10 called it a “boil the frog strategy.” They added: “You get closer and closer and then maybe … you go into the election saying ‘we’ll try to negotiate something more single markety or customs uniony.’”  THE REJOINERS? Labour’s political enemies (and some of its supporters) argue this could all lead even further — to rejoining the EU one day. “Genuinely, I am not advocating rejoin now in any sense because it’s a 10-year process,” said Creasy, who is about as Europhile as they come in Labour. “Our European counterparts would say ‘hang on a minute, could you actually win a referendum, given [Reform UK Leader and Brexiteer Nigel] Farage is doing so well?’”  With Prime Minister Keir Starmer tanking in the polls, the Europhile streak among many Labour MPs and members means Brexit could become a key issue for anyone who would seek to replace him. | Tom Nicholson/Getty Images Simon Opher, an MP and member of the Mainstream Labour group closely aligned with Burnham, said rejoining was “probably for a future generation” as “the difficulty is, would they want us back?” But look into the soul of many Labour politicians, and they would love to still be in the bloc — even if they insist rejoining is not on the table now. Andy Burnham — the Greater Manchester mayor who has flirted with the leadership — remarked last year that he would like to rejoin the EU in his lifetime (he’s 56). London Mayor Sadiq Khan said “in the medium to long term, yes, of course, I would like to see us rejoining.” In the meantime Khan backs membership of the single market and customs union, which would still go far beyond No. 10’s red lines.  THE ISSUES-LED MPS Then there are the disparate — yet overlapping — groups of MPs whose views on Europe are guided by their politics, their constituencies or their professional interests. To Starmer’s left, backbench rebels including Richard Burgon and Dawn Butler backed the push toward a customs union by the opposition Lib Dems. The members of the left-wing Socialist Campaign Group frame their argument around fears Labour will lose voters to other progressive parties, namely the Lib Dems, Greens and SNP, if they fail to show adequate bonds with Europe. Some other, more centrist MPs fear similar. Labour MPs with a military background or in military-heavy seats also want the U.K. and EU to cooperate further. London MP Calvin Bailey, who spent more than two decades in the Royal Air Force, endorsed closer security relations between Britain and France through greater intelligence sharing and possibly permanent infrastructure. Alex Baker, whose Aldershot constituency is known as the home of the British Army, backed British involvement in a global Defense, Security and Resilience Bank, arguing it could be key to a U.K.-EU Defence and Security Pact. The government opted against joining such a scheme.   Parliamentarians keen for young people to bag more traveling rights were buoyed by a breakthrough on Erasmus+ membership for British students at the end of last year. More than 60 Labour MPs earlier signed a letter calling for a youth mobility scheme allowing 18 to 30-year-olds expanded travel opportunities on time limited visas. It was organized by Andrew Lewin, the Welywn Hatfield MP, and signatories included future Home Office Minister Mike Tapp (then a backbencher).  Labour also has an influential group of rural MPs, most elected in 2024, who are keen to boost cooperation and cut red tape for farmers. Rural MP Steve Witherden, on the party’s left, said: “Three quarters of Welsh food and drink exports go straight to the EU … regulatory alignment is a top priority for rural Labour MPs. Success here could point the way towards closer ties with Europe in other sectors.”  THE NOT-SO-SECRET EUROPHILES (A.K.A. ALL OF THE ABOVE) Many Labour figures argue that all of the above are actually just one mega-group — Labour MPs who want to be closer to Brussels, regardless of the mechanism. Menon agreed Labour camps are not formalized because most Labour MPs agree on working closely with Brussels. “I think it’s a mishmash,” he said. But he added: “I think these tribes will emerge or develop because there’s an intra-party fight looming, and Brexit is one of the issues people use to signal where they stand.” A fourth Labour MP agreed: “I didn’t think there was much of a distinction between the camps of people who want to get closer to the EU. The first I heard of that was over the weekend.”  The senior Labour official quoted above added: “I don’t think it cuts across tribes in such a clear way … a broader group of people just want us to move faster in terms of closeness into the EU, in terms of a whole load of things. I don’t think it fits neatly.” For years MPs were bound by a strategy of talking little about Brexit because it was so divisive with Labour’s voter base. That shifted over 2025. Labour advisers were buoyed by polls showing a rise in “Bregret” among some who voted for Brexit in 2016, as well as changing demographics (bluntly, young voters come of age while older voters die).  No. 10 aides also noted last summer that Farage, the leader of the right-wing populist party Reform UK, was making Brexit less central to his campaigning. Some aides (though others dispute this) credit individual advisers such as Tim Allan, No. 10’s director of communications, as helping a more openly EU-friendly media strategy into being. For all the talk of tribes and camps, Labour doesn’t have warring Brexit factions in the same way that the Tories did at the height of the EU divorce in the 2010s. | Jakub Porzycki/Getty Images THE BLUE LABOUR HOLDOUTS  Not everyone in Labour wants to hug Brussels tight.  A small but significant rump of Labour MPs, largely from the socially conservative Blue Labour tribe, is anxious that pursuing closer ties could be seen as a rejection of the Brexit referendum — and a betrayal of voters in Leave-backing seats who are looking to Reform. One of them, Liverpool MP Dan Carden, said the failure of both London and Brussels to strike a recent deal on defense funding, even amid threats from Russia, showed Brussels is not serious.   “Any Labour MP who thinks that the U.K. can get closer to the single market or the customs union without giving up freedoms and taking instruction from an EU that we’re not a part of is living in cloud cuckoo land,” he said. A similar skepticism of the EU’s authority is echoed by the Tony Blair Institute (TBI), led by one of the most pro-European prime ministers in Britain’s history. The TBI has been meeting politicians in Brussels and published a paper translated into French, German and Italian in a bid to shape the EU’s future from within.   Ryan Wain, the TBI’s senior director for policy and politics, argued: “We live in a G2 world where there are two superpowers, China and the U.S. By the middle of this century there will likely be three, with India. To me, it’s just abysmal that Europe isn’t mentioned in that at all. It has massive potential to adapt and reclaim its influence, but that opportunity needs to be unlocked.”  Such holdouts enjoy a strange alliance with left-wing Euroskeptics (“Lexiteers”), who believe the EU does not have the interests of workers at its heart. But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn has long since been cast out. At the same time many Labour MPs in Leave-voting areas, who opposed efforts to stop Brexit in the late 2010s, now support closer alignment with Brussels to help their local car and chemical industries. As such, there are now 20 or fewer MPs holding their noses on closer alignment. Just three Labour MPs, including fellow Blue Labour supporter Jonathan Brash, voted against a bill supporting a customs union proposed by the centrist, pro-Europe Lib Dems last month.  WHERE WILL IT ALL END?  For all the talk of tribes and camps, Labour doesn’t have warring Brexit factions in the same way that the Tories did at the height of the EU divorce in the 2010s. Most MPs agree on closer alignment with the EU; the question is how they get there.  Even so, Menon has a warning from the last Brexit wars. Back in the late 2010s, Conservative MPs would jostle to set out their positions — workable or otherwise. The crowded field just made negotiations with Brussels harder. “We end up with absolutely batshit stupid positions when viewed from the EU,” said Menon, “because they’re being derived as a function of the need to position yourself in a British political party.” But few of these were ever in Labour and few remain; former Leader Jeremy Corbyn has long since been cast out. | Seiya Tanase/Getty Images The saving grace could be that most Labour MPs are united by a deeper gut feeling about the EU — one that, Baldwin argues, is reflected in Starmer himself. The PM’s biographer said: “At heart, Keir Starmer is an outward-looking internationalist whose pro-European beliefs are derived from what he calls the ‘blood-bond’ of 1945 and shared values, rather than the more transactional trade benefits of 1973,” when Britain joined the European Economic Community.  All that remains is to turn a “blood-bond” into hard policy. Simple, right?
UK
Referendum
Politics
Borders
Customs
Trump has ‘greenlit’ Russia sanctions bill, Lindsey Graham says
Sen. Lindsey Graham said Wednesday after meeting with President Donald Trump that the Senate could vote as soon as next week to impose new sanctions aimed at pressuring Russia to end its war with Ukraine. “After a very productive meeting today with President Trump on a variety of issues, he greenlit the bipartisan Russia sanctions bill that I have been working on for months with Senator [Richard] Blumenthal and many others,” Graham (R-S.C.) said in a statement, referring to the Connecticut Democrat who coauthored the long-stalled legislation. Spokespeople for the White House didn’t immediately respond to a request for comment. Graham said a Senate vote would take place “hopefully as early as next week.” Graham and Senate Republican leaders have been working with the White House for months to try to reach an agreement on a final version of the legislation — and this isn’t the first time Graham has declared that his bill could soon move, for it to only stall out again. The legislation would place secondary sanctions on countries such as China and India that buy oil and gas from Russia in a bid to cut off the cash flow for President Vladimir Putin’s war machine. “Ukraine is making concessions for peace and Putin is all talk, continuing to kill the innocent,” Graham said, saying the legislation would be “well-timed.” A spokesperson for Graham didn’t immediately respond to a question about whether changes will be incorporated at Trump’s request. The president has previously requested absolute flexibility to impose and retract any sanctions at will.
Defense
War
War in Ukraine
Energy and Climate
Trade
UK’s David Lammy to meet JD Vance as Ukraine talks inch forward
LONDON — U.K. Deputy Prime Minister David Lammy will meet U.S. Vice President JD Vance in Washington Thursday as European leaders try to pin down security guarantees for Ukraine. Lammy will travel to D.C. Wednesday to take part in celebrations marking the 250th anniversary of the founding of the United States, but will revive some old connections on his trip. The meeting comes at a particularly sensitive time for U.S.-U.K. relations after U.S. President Donald Trump doubled down on his claims to Greenland following a U.S. operation to capture Venezuelan President Nicolás Maduro. U.K. Prime Minister Keir Starmer, and other European leaders, issued a statement Tuesday warning the Danish-held territory’s security must be ensured collectively by NATO. The pair are expected to discuss Ukraine alongside other topics at their latest meeting, according to three British officials and one U.S. official familiar with their plans, not authorized to speak on the record. Lammy, Britain’s former foreign secretary, has developed a friendship with the American vice-president. It saw Vance and his family stay with Lammy during a holiday to the U.K. last summer. The two men have bonded over their difficult upbringings as well as their faith, with Lammy attending Mass in Washington at the vice-president’s invitation in March 2025. Lammy was moved from the post of U.K. foreign secretary in a cabinet reshuffle last September to become justice secretary as well as the prime minister’s deputy, following the resignation of Angela Rayner. While in the U.S. he is also expected to meet members of Congress with whom he has good ties, in what one of the British officials quoted above described as “a long-planned trip to discuss the special relationship.” The visit will nonetheless form part of London’s efforts to cement American backing for any ceasefire negotiated between Ukraine and Russia, currently being hammered out at a meeting of the “coalition of the willing” in Paris. Vance was previously seen as one of the most skeptical voices in the White House on the U.S. role in seeking peace for Ukraine, but became more directly involved in talks in the second half of last year.
Politics
Security
Trade UK
UK government readies Brexit dynamic alignment bill
LONDON — The government is preparing a bill that will give overarching powers to allow the U.K. to align with the EU over a wide suite of areas to give legal shape to their “reset” deal with the bloc. One U.K. official said a bill is due to be introduced to parliament this spring or summer, establishing a legal framework for U.K.-EU alignment. These potential areas include food standards, animal welfare, pesticide use, the EU’s electricity market and carbon emissions trading, according to the official, who was granted anonymity to speak freely about the plans. The bill would create a new framework for the U.K. government and devolved administrations to adopt new EU laws when they are passed in Brussels. It raises the prospect that new EU laws in agreed areas will effectively transfer to the U.K. statute book automatically, with Britain retaining the power to veto them in specific cases. U.K. officials stress that the exact form the powers will take has not yet been decided. The U.K. is currently negotiating a Brexit “reset” agreement with the bloc, including an agrifood deal, plans to link its emissions trading system with the EU’s and reintegrating electricity markets. Britain is still seeking carve-outs as part of these deals, the official said, making it too early to say exactly where alignment will happen and what it will look like. News of the scope of the bill comes after EU Relations Minister Nick Thomas-Symonds said in August last year that parliament would “rightly have a say” on alignment with new EU rules in a speech delivered to The Spectator. He has insisted that the U.K. will still “have decision-shaping rights when new EU policies are made.” The U.K. government has been approached for comment.
Rights
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Energy and Climate
Trade
Carbon