Reuters News - EU tells Johnson to decide as time runs out for Brexit deal

 BRUSSELS/LONDON (Reuters) - British and European Union negotiators made a last-ditch effort on Monday to bridge stubborn differences standing in the way of a post-Brexit trade deal, but they had at best 48 hours to avoid a disorderly parting of ways at the end of this month.

“EU-UK negotiations have entered the endgame, time is running out quickly,” said an EU diplomat after the bloc’s chief negotiator, Michel Barnier, gave member states’ envoys to Brussels a downbeat assessment of the state of play.

“It is for the UK to chose between ... a positive outcome or a no-deal outcome.”

With growing fears of no-deal chaos after London finally leaves the EU’s orbit on Dec. 31, talks resumed before British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen review the situation in a call at 1600 GMT.

Irish Prime Minister Micheal Martin, whose country would be the hardest hit of the 27 EU states if there is no trade accord, put the chances of a deal at 50-50. Investment bank JPMorgan said its odds on a no-deal had risen to one third from 20%.

The British pound tumbled on concerns that there would be no agreement covering annual trade worth nearly $1 trillion.

Barnier told members of the European Parliament in a separate briefing that negotiations could go on until Wednesday, but no further, Ireland’s RTE news said.

EU diplomats said the ball was now in Johnson’s court.

“People need to understand that the British are playing with fire here and the fire can burn everybody and that’s something we should all try to avoid,” said Mairead McGuinness, Ireland’s commissioner in the EU executive.

However, the Sun newspaper reported that Johnson, a figurehead for Britain’s campaign that led to a “vote leave” victory in a 2016 referendum, was ready to pull out of the talks within hours unless Brussels changed its demands.

In London, a lawmaker in Johnson’s governing Conservative Party said France would have to make concessions on fishing, and the EU would have to drop what he said were new demands on fair competition known as the level playing field.

HIGH RISK FOR ECONOMIES

Britain, which joined the EU in 1973, formally left the bloc on Jan. 31 but has been in a transition period since then under which rules on trade, travel and business remain unchanged.

For weeks, the two sides have been haggling - as yet without a result - over fishing rights in British waters, ensuring fair competition for companies and ways to solve future disputes.

Failure to secure a deal would clog borders, upset financial markets and disrupt delicate supply chains across Europe and beyond as the world tries to cope with the vast economic cost of the COVID-19 pandemic.

Sterling fell by more than 1% to six-week lows versus the euro and also dropped against the dollar to $1.327, a U-turn in market sentiment from Friday when it had risen above $1.35 for the first time this year.

With just days left for a deal to be agreed, EU diplomats said it was a decisive moment for both the United Kingdom and the bloc which built the ruined nations of Europe into a global power after the devastation of World War Two.

Britain said it could remove clauses in legislation that would breach its Brexit deal with the EU and would review provisions in another bill if talks on the Withdrawal Agreement progress.

Britain admits the clauses breach international law but says they are an essential safety net that would ensure the integrity of the United Kingdom.

Additional reporting by Elizabeth Piper, Costas Pitas, Michael Holden, Kate Holton, Sujata Rao-Coverley, Paul Sandle and Sarah Young in London, and Conor Humphries in Dublin, Writing by Guy Faulconbridge and John Chalmers, Editing by Timothy Heritage, William Maclean and Nick Macfie

Our Standards: The Thomson Reuters Trust Principles.

BBC News - Brexit: Time running out as Brexit trade talks restart

 

The UK and the EU have resumed talks on post-Brexit trade in London, with time running out to achieve a deal.

A senior UK government source said the prospects of a breakthrough were "receding" and accused the EU of making "11th-hour" demands.

But a Brussels source denied this, with EU chief negotiator Michel Barnier calling Friday an "important day".

Both sides have to agree and ratify any deal by 31 December, when the current rules on EU-UK trade end.

If they do not, they will do business on World Trade Organization rules, meaning the introduction of tariffs, or taxes on imports.

• Kuenssberg: Have talks taken a turn for the worse?
• What happens next with Brexit?
• Why is fishing important in Brexit trade talks?
• Brexit: What is a level playing field?

The negotiating teams are seeking compromises in key areas - including fishing rights and business competition rule - in time for EU leaders to discuss them at a summit scheduled for Thursday.

And, rather than returning to Brussels as planned on Friday, Mr Barnier is staying in London to continue discussions.

Brexit - The basics

• Brexit happened but rules didn't change at once: The UK left the European Union on 31 January 2020, but leaders needed time to negotiate a deal for life afterwards - they got 11 months.
• Talks are happening: The UK and the EU have until 31 December 2020 to agree a trade deal as well as other things, such as fishing rights.
• If there is no deal: Border checks and taxes will be introduced for goods travelling between the UK and the EU. But deal or no deal, we will still see changes.

What happens next with Brexit?

Business Secretary Alok Sharma told BBC Radio 4's Today programme the talks were "in a difficult phase".

He added that the UK must be recognised as "a sovereign and independent nation" and it was "on the basis of that that a deal will be done"

Fishing rights remain a major area of contention between the UK and France - one of the EU's most powerful members.

France's Europe minister, Clement Beaune, warned that his government could "veto" any deal reached between the UK and EU, if it did not satisfy his country's demands.

But European Council President Charles Michel urged the EU's 27 member states to maintain "unity" as negotiations continue.

With Brexit, talks don't just go to the wire. They go beyond it.

Remember, the UK left the EU nearly a year after it was intended. So the fact it's taking this long to reach a trade deal shouldn't come as a shock.

But there really is pressure in the next few days to declare "deal or no deal".

On Monday, the Internal Market Bill returns to the Commons. It would allow the UK to sidestep aspects of the agreement that was reached to leave the EU - and break international law in a "limited and specific way".

Brussels has warned the government that this could scupper a trade deal.

That aside, any deal would have to be ready before EU leaders are invited to sign it off at a summit on Thursday.

It doesn't augur well that the UK and EU are even disagreeing about their disagreements.

The government says Brussels has hardened its position on how competition rules are policed; the EU counters that it has made no new demands.

But it's not surprising that both sides are crying "ouch" as the thorniest issues are now being grasped.

But while No 10 talks of "setbacks", it hasn't yet said negotiations have broken down. While discussions between both sides continue, the prospect of a deal is still possible.

Any deal would have to be signed off by the European and UK Parliaments before it can come into force. It could also require eventual ratification in the 27 EU national parliaments, depending on the contents.

The UK and EU have been in negotiation since March to determine their future relations once the UK's Brexit transition period - under which it still follows most of the EU's rules - ends in less than four weeks' time.

Why is fishing so important?

Fishing is a tiny part of the overall economy on both sides of the Channel, but it has a political importance which allows it to punch well above its weight in these negotiations.

It was a big part of the Leave campaign in the run-up to the Brexit referendum in 2016, and it is a totemic issue for those who argue that national sovereignty must be fully regained.

But it's a sensitive issue in other countries as well. French President Emmanuel Macron will want to win regions with big fishing communities in the next presidential election in 2022. And any proposed deal needs the agreement of all EU countries - it can't just be signed off by the European Commission.

Reuters News - United States toughens visa rules for 'malign' Chinese Communist Party members

 (Reuters) - U.S. President Donald Trump’s administration has issued rules to restrict travel to the United States by Chinese Communist Party members and their families, the State Department said in a statement on Thursday.

The policy reduces the maximum validity length of B1/B2 visitor visas for party members and their immediate family members from 10 years to 1 month, the statement said.

The measure was aimed at protecting the nation from the party’s “malign influence,” the statement said, adding the party works to “influence Americans through propaganda, economic coercion, and other nefarious activities.”

The Trump administration has sought to cement the outgoing president’s tough-on-China legacy, and relations between the world’s two largest economies have sunk to their lowest point in decades.

Chinese foreign ministry spokeswoman Hua Chunying responded at a news briefing on Thursday, saying: “This clearly is an escalated form of political oppression towards China by some extreme anti-China forces in the U.S. who act out of intense ideological bias and a deep-rooted Cold War mentality.”

Washington and Beijing have clashed over China’s handling of the coronavirus outbreak, its tightening grip on Hong Kong, its disputed claims in the South China Sea, trade and accusations of human rights crimes in Xinjiang.

Last week, Reuters reported the United States was poised to add China’s top chipmaker SMIC and national offshore oil and gas producer CNOOC to a blacklist of alleged Chinese military companies, curbing their access to U.S. investors.

News of the restrictions was first reported by The New York Times. The new visa guidelines allow American officials to determine someone’s party status based on their application and interview, the paper reported.

Reporting by Ted Hesson in Washington D.C., Derek Francis and Kanishka Singh in Bengaluru; Editing by Bernadette Baum

Our Standards: The Thomson Reuters Trust Principles.

BBC News - China-US trade war: Beijing escalates tit-for-tat with Washington

 

China has introduced tough new laws which restrict the export of "controlled items".

The rules primarily focus on the export of military technologies and other products that might harm China's national security.

The export controls are widely believed to be in response to similar actions by the US.

TikTok, Huawei and Tencent are among the casualties of Washington's Chinese technology crackdown.

• US-China trade war in 300 words
• China pledges to open up its 'super-sized' economy
• One last twist in Trump's trade war with China

There are concerns the new regulations, which came into effect on Tuesday, could escalate the ongoing trade war with the US.

Trade tensions between the world's two biggest economies began in 2018 but have ramped up this year.

Tech cold war

President Donald Trump's administration has introduced executive orders against a range of Chinese firms arguing they could share data with the Chinese government.

China's new export laws are "a reaction to this escalation of the tech war and it's China looking to cover its own advantages", said Alex Capri, visiting professor at the National University of Singapore.

Speaking on BBC's Asia Business Report, Mr Capri added: "The other thing I find really interesting is China has placed AI and algorithms under these export controls.

"This was prompted by the US ban on TikTok. The Chinese government does not want to share this AI."

Mr Capri believes the ongoing trade war between the US and China will follow the "same trajectory" under Joe Biden. "We're in a cold war with China - it's a tech cold war," he said.

What do the new laws do?

The Export Control Law establishes several categories of “controlled items”, which include nuclear, military items and “dual use” items that can be used for both civilian and military purposes.

The law also covers items that are considered vital to the protection of China’s national security.

Exporters must apply for a license in order to export any item listed on a control list or subject to temporary controls.

Data associated with the controlled items is also covered by the law.

The law imposes penalties of ten times the value of the offending transaction up to $760,000 (£569,000).

It also allows for the punishment of overseas organisations or individuals, suggesting Beijing might attempt to use it to restrict the sale of sensitive technology globally.

Rare earth

Prices for rare earth minerals have increased in anticipation that the law could affect their export.

China is the world’s biggest supplier of rare earth minerals, which are used in products ranging from consumer electronics - like smart phones - to wind turbines.

"China has a massive overwhelming advantage when it comes to rare earths," said Mr Capri. "Essentially, over the past 30 years, the ability to extract rare earths lies with China. It's going to be hugely important when it comes to jet fighters, autootive, etc."

Reuters News - Bipartisan U.S. lawmakers seek fast approval of $908 billion COVID-19 relief

 WASHINGTON (Reuters) - A bipartisan group of U.S. lawmakers on Tuesday unveiled a $908 billion COVID-19 relief bill aimed at breaking a monthslong deadlock between Democrats and Republicans over new emergency assistance for small businesses, unemployed people, airlines and other industries during the pandemic.

The measure has not yet been written into legislation. Nor has it been embraced yet by the Republican Trump administration, Democratic President-elect Joe Biden or leaders in the Senate or House of Representatives, all of whom would be needed for passage.

But it comes with the backing of a group of conservatives and moderates who claim it will appeal to a broad swath of Congress.

Lawmakers are hoping to wrap up their work for the year by mid-December, but they still have a massive government-funding bill to approve or else risk agency shutdowns starting on Dec. 12.

If the bipartisan coronavirus aid bill gains traction in coming days, it could either be attached to the spending bill or advance on a separate track.

“It would be stupidity on steroids if Congress left for Christmas without doing an interim package,” said Democratic Senator Mark Warner.

Earlier this year, over $3 trillion in coronavirus aid was enacted, which included economic stimulus measures and money for medical supplies.

Unveiling of the plan at a Capitol Hill news conference came as the number of coronavirus cases surged in the United States, coupled with significant increases in deaths and many hospital resources at a breaking point.

Republican Senator Lisa Murkowski urged quick action on the bipartisan plan as she ticked off business closures mushrooming in her state of Alaska “during a pretty dark and cold time of year,” with many suffering job losses and “food insecurity.”

The bipartisan proposal would provide emergency aid through March 31, including $228 billion in additional Paycheck Protection Program funds for hotels, restaurants and other small businesses.

State and local governments would receive direct aid under the bipartisan bill, the lawmakers said.

Ohio Governor Mike DeWine, a Republican, appealed for help from Congress, noting in an interview on “CBS This Morning” that his state has more than 5,000 coronavirus patients in hospitals and not enough money to distribute the much-awaited COVID vaccines that are expected to be available beginning this winter.

U.S. airlines would receive $17 billion for four months of payroll support as part of $45 billion for the U.S. transportation sector that also includes airports, buses, and Amtrak passenger rail, according to two people familiar with the plan.

Overall, Senator Mitt Romney, a Republican, said it contains $560 billion in “repurposed” funding from the CARES Act enacted in March, with the remaining $348 billion in new money.

The measure includes provisions that Republicans have been pressing for, including new liability protections for businesses and schools grappling with the coronavirus pandemic.

But it is far more expensive than the $500 billion that Senate Majority Leader Mitch McConnell has been advocating.

House of Representatives Speaker Nancy Pelosi and her fellow Democrats would win a central demand with the aid to state and local governments, which face layoffs of front-line workers due to a lack of revenues.

A compromise $300 per week for four months in additional, unemployment benefits would also be in the package, according to the lawmakers. Democrats had been seeking $600.

Separately, a group of Democratic senators introduced legislation on Tuesday that would extend until October 2021 the $600 per week in jobless benefits for workers who lost their jobs due to COVID-19.

While it is significantly below the $2.2 trillion Pelosi sought in her last offer to the White House before the Nov. 3 elections, the $908 billion is for a relatively short period, potentially opening the door to additional requests for money once the Biden administration is in place.

Pelosi and Treasury Secretary Steven Mnuchin were expected to discuss coronavirus aid and the must-pass government funding bill later on Tuesday.

Reporting by Richard Cowan and Doina Chiacu; Additional reporting by Patricia Zengerle, David Morgan and David Shepardson; Editing by Franklin Paul, Chris Reese and Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.