The American commercial deal and the United States pressure China’s supply chains

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The United Kingdom has accepted the strict US security requirements for steel and pharmacy industries in its trade agreement with Donald Trump, while diplomats see Washington to push other partners to exclude China from strategic supply chains.

Thursday deal The introductory relief was provided to both industries, but only on the condition that “Britain works to meet our requirements immediately” on the security of their supply chain and “the ownership of relevant production facilities.”

UK officials said that the ruling applies to all third countries, but he admitted that Trump had indicated this China The intended goal was.

Since the industrial groups sought to clarify the nature of the American requirements regarding the security of the supply and ownership chain, trade experts argued that the deal indicated that the Trump administration was gaining long -term demands to restrict Chinese inputs on strategic goods.

“Washington from the United Kingdom and other countries want to open his books and ultimately move away from Chinese trade and investment, especially in sensitive areas such as steel,” said Ally Renison, a former UK trade official.

the text Among the five-page United States deal, which was hastily collected in seven weeks of Trump’s announcement of global import duties on April 2, determines that the identification relief of British products depends on the so-called investigations in Section 232-Investigations to determine whether the specified imports affect American national security and how.

He adds that the United States plans to reduce the customs tariffs of the United Kingdom are based on “joint national security priorities” as well as what it describes as a “balanced trade relationship.”

“He expects” similar circumstances repeated in other deals, especially in export centers in Southeast Asia, such as Vietnam and Cambodia. “

But senior European Union trading officials said that the conditions related to China have serious repercussions on their efforts to agree to the bloc deal with Washington.

Two officials involved in the negotiations with the Trump administration told the Financial Times that the bloc would struggle to repeat these economic security elements of the American Trade Agreement and the United States.

“There is no unit on how to deal with China,” said one of the 27 members of the European Union.

The British Labor Government rejected “full nonsense” accusations by opposition governors that this week’s deal, which also provides an introductory relief for aluminum in the UK, and Washington supported “cassation” on supply chains.

Darren Jones, Secretary of the Treasury, told Times Radio.

One of the British officials said: “The United States does not want, given that the UK will get a much lower tariff than the rest of the world, to be in a place that countries or companies can circumvent their bases through UK exports to the United States,” said one of the British officials.

Renison, now at Consultance Secretate, said that the demands of the United States were in line with the speed of acceleration, noting that the Biden administration asked to see the UK review on a Chinese -owned steel company before raising the previous steel tariff for Trump.

She said that Beijing is likely to split whether the UK’s final agreement with the United States – which will be subject to more negotiations – connects Britain to a more comprehensive consensus with the US approach to trade with China.

UK industry groups said it was pushing the government to obtain more information that had not been granted any immediate signal to what the proposed US tariff discounts or supply chain requirements were.

Those familiar with the British pharmaceutical industry said that the final conditions depend on the results American investigation In April, he announced the effects of national security security.

One of them said: “It is clear that the United States and the United Kingdom were appointed for more negotiations after the end of Article 232 Pharma.”

The UK Steel, the industrial lobby group, highlighted the lack of clarity in the five -page text, including the failure to refer to any decrease in the customs tariff to scratch, as well as questions about the conditions of the supply chain and the proposal that will be applied.

The UK Steel said: “The conditions of the deal highlighting a number of hoops to jump before the UK steel sector can see the benefits of this deal,” the UK Steel said. “To assess the complete impact on our sector, we will need to understand the conditions of the supply chain completely that you need to meet, how to define the shares and when it will do so.”