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Australia, Britain to hold talks on boosting defense and economic ties

Australia, Britain to hold talks on boosting defense and economic ties
Australia's Foreign Minister Penny Wong said that Britain and Australia were "longstanding friends" and the two countries wanted to modernise the relationship. (AFP/File)
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Updated 5 sec ago

Australia, Britain to hold talks on boosting defense and economic ties

Australia, Britain to hold talks on boosting defense and economic ties
  • Australia sees Britain as a critical partner and the two countries are working closely
  • Australia’s Foreign Minister Penny Wong said that Britain and Australia were “longstanding friends“

SYDNEY: Australia and Britain’s defense and foreign ministers will hold talks in Sydney on Friday on boosting cooperation, coinciding with Australia’s largest war games and the first visit by a British carrier strike group in three decades, Australia said.

Following the Australia-United Kingdom Ministerial Consultations (AUKMIN), Britain’s Foreign Minister David Lammy and Defense Secretary John Healey are scheduled to travel to the northern garrison city of Darwin, where the British aircraft carrier HMS Prince of Wales has arrived for the Talisman Sabre war games.

Australia sees Britain as a critical partner and the two countries are working closely amid “shared strategic challenges in an increasingly complex and uncertain world,” Defense Minister Richard Marles said in a statement.

As many as 40,000 troops from 19 countries are taking part in the Talisman Sabre exercises held from July 13 to August 4, which Australia’s military has said are a rehearsal of joint war fighting that contribute to stability in the Indo-Pacific.

Britain has significantly increased its participation in the exercise co-hosted by Australia and the United States, with 3,000 troops taking part.

The talks are expected to focus on progressing the AUKUS partnership for Britain and Australia to build a new class of nuclear-powered submarine, even as the United States reviews the trilateral defense technology agreement and presses Australia to increase defense spending.

Australia’s Foreign Minister Penny Wong said that Britain and Australia were “longstanding friends” and the two countries wanted to modernize the relationship.

“From building defense capability and boosting economic resilience, to standing up for human rights, advancing gender equality, and defending the international rules and institutions that protect us all,” she said in a statement.


Spanish airline denies reports that passengers were removed from a plane because they are Jewish

Spanish airline denies reports that passengers were removed from a plane because they are Jewish
Updated 7 sec ago

Spanish airline denies reports that passengers were removed from a plane because they are Jewish

Spanish airline denies reports that passengers were removed from a plane because they are Jewish
Israeli news outlets reported that the students are Jewish and their removal was religiously motivated
“A group of passengers engaged in highly disruptive behavior … putting at risk the safe conduct of the flight,” Vueling said

MADRID: Several dozen French passengers were removed from a flight leaving the Spanish city of Valencia for Paris for what Spanish police and the airline on Thursday described as unruly behavior.

The carrier, Vueling, denied reports that Wednesday’s incident, which involved the removal of 44 minors and eight adults from flight V8166, was related to the passengers’ religion.

Some Israeli news outlets reported that the students are Jewish and that their removal was religiously motivated, a claim that was repeated by an Israeli minister online.

Spain’s Civil Guard said the minors and adults are French nationals. A Civil Guard spokesperson said the agents involved were not aware of the group’s religious affiliation.

A Vueling spokesperson said the passengers were removed after the minors repeatedly tampered with the plane’s emergency equipment and interrupted the crew’s safety demonstration.

“A group of passengers engaged in highly disruptive behavior and adopted a very confrontational attitude, putting at risk the safe conduct of the flight,” Vueling said in a statement. “We categorically deny any suggestion that our crew’s behavior related to the religion of the passengers involved.”

A Civil Guard spokesperson said the captain of the plane ordered the removal of the minors from the plane at Valencia’s Manizes Airport after they repeatedly ignored the crew’s instructions.

On Thursday, the Federation for Jewish Communities of Spain expressed concern about the incident. The group said that Vueling needed to provide documentary evidence of what happened on the plane.

“The various accounts circulating on social media and in the media to which we have had access do not clarify the cause of the incident,” the organization said.

“We are particularly interested in clarifying whether there were any possible religiously discriminatory motives toward the minors,” the group said.

The Civil Guard said 23 minors and two adults from the group boarded a flight belonging to another airline, while the rest spent Wednesday night at a hotel.

The spokesperson said arrangements were being made for them to leave Valencia later Thursday.

Two dead as Cyprus battles wildfire in searing heat

Two dead as Cyprus battles wildfire in searing heat
Updated 26 min 20 sec ago

Two dead as Cyprus battles wildfire in searing heat

Two dead as Cyprus battles wildfire in searing heat
  • “We express the deep sorrow of the state over the unjust loss of two of our fellow citizens,” said Letymbiotis
  • Health authorities said two people were admitted to hospital with severe burns

SOUNI, Cyprus: Two people have died in a wildfire outside Cyprus’s second city of Limassol fanned by strong winds and temperatures that were forecast to reach 44C, authorities said on Thursday.

Police said two charred bodies were found in a burnt out car believed to have been caught up in the blaze that erupted on Wednesday afternoon.

“We express the deep sorrow of the state over the unjust loss of two of our fellow citizens during the devastating wildfires,” said government spokesman Konstantinos Letymbiotis.

Announcing relief measures for the affected communities, Letymbiotis said that “what is unfolding in our country... is unprecedented” with “multiple simultaneous wildfire outbreaks.”

Health authorities said two people were admitted to hospital with severe burns while another 16 were treated for less serious injuries.

Fire service spokesperson Andreas Kettis said the blaze, which started in the village of Malia in the hills above Limassol, ravaged 100 square kilometers (nearly 40 square miles).

He said there were “no active fronts” in the fire but intense “flare-ups” continued in the area.

Authorities issued an extreme heat alert for the Mediterranean holiday island as temperatures were expected to peak at 44C.

More than 250 firefighters and 75 vehicles were deployed to battle the blaze.

The government has asked neighboring countries to send aircraft to support the firefighting effort.

Justice Minister Marios Hartsiotis told public broadcaster CyBC that Jordan had two firefighting aircraft on stand-by while two more were expected to come from Spain.

Israel said it would send later on Thursday a military aircraft “to provide aerial support to Cyprus in its battle against the fires sweeping the island.”

Hartsiotis said 106 people had to spend the night in temporary accommodation after several villages were evacuated in the face of the advancing flames.

Scores of homes are feared to have been damaged or destroyed by the fire, with 16 communities left without electricity for airconditioning or refrigeration in the searing heat.

“When I entered my house, I saw the mountain and the valley full of flames,” said Antonis Christou, a resident of Kandou, one of the villages affected by the fire.

“I cried, really I cried, because people got burnt, and someone got burnt while in his car.”

Fire service chief Nikos Longinos told CyBC that he had passed on witness testimony to the police which suggested that the blaze might have been started deliberately.

Cyprus is hit by wildfires almost every year during the island’s hot, dry summers. A 2021 wildfire in Larnaca district killed four Egyptian farmworkers.


For hope on climate change, follow the money, UN chief tells AP

For hope on climate change, follow the money, UN chief tells AP
Updated 53 min 34 sec ago

For hope on climate change, follow the money, UN chief tells AP

For hope on climate change, follow the money, UN chief tells AP
  • Guterres hailed the power of market forces in what he repeatedly called “a battle” to save the planet
  • “Obviously, the (Trump) administration in itself is an obstacle, but there are others. The government in the US doesn’t control everything,” the UN chief said

NEW YORK: For nearly a decade, UN Secretary-General Antonio Guterres has been using science to warn about ever more dangerous climate change in increasingly urgent tones. Now he’s enlisting something seemingly more important to the world’s powerful: Money.

In an exclusive interview with The Associated Press, Guterres hailed the power of market forces in what he repeatedly called “a battle” to save the planet.

He pointed to two new UN reports showing the plummeting cost of solar and wind power and the growing generation and capacity of those green energy sources. He warned those who cling to fossil fuels that they could go broke doing it.

“Science and the economy show the way,” Guterres said in a 20-minute interview in his 38th-floor conference room overlooking the New York skyline. “What we need is the political will to take the decisions that are necessary in regulatory frameworks, in financial aspects, in other policy dimensions. Governments need to take decisions not to be an obstacle to the natural trend to accelerate the renewables transition.”

That means by the end of the autumn, governments need to come up with new plans to fight climate change that are compatible with the global goal of limiting warming and ones that apply to their entire economy and include all greenhouse gases, Guterres said.

But don’t expect one from the United States. President Donald Trump has pulled out of the landmark Paris climate agreement, slashed efforts to boost renewable energy and made fossil fuels a priority, including the dirtiest one in terms of climate and health, coal.

“Obviously, the (Trump) administration in itself is an obstacle, but there are others. The government in the US doesn’t control everything,” Guterres said. Sure, Trump pulled out of the Paris accord, but many states and cities are trying to live up to the Biden administration’s climate-saving goals by reducing the burning of coal, oil and natural gas that release heat-trapping gases, Guterres said.

Invest in fossil fuels, risk stranded assets?

“People do not want to lose money. People do not want to make investments in what will become stranded assets,” Guterres said. “And I believe that even in the United States, we will go on seeing a reduction of emissions, I have no doubt about it.”

He said any new investments in exploring for new fossil fuel deposits “will be totally lost” and called them “just a waste of money.”

“I’m perfectly convinced that we will never be able, in the history of humankind, to spend all the oil and gas that was already discovered,” Guterres said.

But amid the hope of the renewable reports, Guterres said the world is still losing its battle on climate change, in danger of permanently passing 1.5 degree Celsius (2.7 degree Fahrenheit) warming since preindustrial times. That threshold is what the Paris agreement set up as a hoped-for global limit to warming 10 years ago.

Many scientists have already pronounced the 1.5 threshold dead. Indeed, 2024 passed that mark, though scientists say it requires a 20-year average, not a single year, to consider the threshold breached.

A scientific study from researchers who often work with the UN last month said the world is spewing so much carbon dioxide that sometime in early 2028, a couple years earlier than once predicted, passing the 1.5 mark will become scientifically inevitable.

Guterres: ‘We need to go on fighting’ even as it looks bleak

Guterres hasn’t given up on the 1.5 degree goal yet, though he said it looks bad.

“We see the acceleration of different aspects of climate change, rising seas, glaciers melting, heat waves, storms of different kinds,” he said.

“We need to go on fighting,” he said. “I think we are on the right side of history.”

Guterres, who spoke to AP after addressing the UN Security Council on the Israeli occupation of Gaza, said there’s only one way to solve that seemingly intractable issue: An immediate ceasefire, a release of all remaining hostages, access for humanitarian relief and “paving the way for a serious political process leading to the two-state solution. Some people say the two-state solution is now becoming extremely difficult. Even some saying it’s impossible. But the question is, what is the alternative?”

Gaza, Ukraine and Sudan are all crises, Guterres said, but climate change is an existential problem for the entire planet. And he said people don’t realize how climate-caused droughts and extreme weather can feed poverty and terrorism. He pointed to the Sahel as an example.

“We see that people live in worse and worse conditions, less and less capacity to grow their crops, less and less capital,” he said. “And this is largely due to climate change.”

“Everything is interlinked: Climate change, artificial intelligence, geopolitical divides, the problems of inequality and injustice,” Guterres said. “And we need to make sure that we make progress in all of them at the same time.”


Trump tariffs would hit Hungary hard despite warm relations with MAGA-friendly Orbán

Trump tariffs would hit Hungary hard despite warm relations with MAGA-friendly Orbán
Updated 59 min 51 sec ago

Trump tariffs would hit Hungary hard despite warm relations with MAGA-friendly Orbán

Trump tariffs would hit Hungary hard despite warm relations with MAGA-friendly Orbán
  • “The entire possibility for Hungary to export to America would be essentially eliminated,” Péter Virovácz, chief analyst at ING Hungary, said
  • When Trump began imposing tariffs on EU exports earlier this year, the cost of Taste Hungary’s shipments tripled, Bánfalvi said

BUDAPEST: Hungary’s populist prime minister has spent years building a close political relationship with US President Donald Trump and aligning himself with the MAGA movement.

But despite Viktor Orbán’s success in gaining favor with the culturally conservative and nationalist wing of Trump’s administration, his country is poised to be among those hard hit by Trump’s tariffs against the European Union.

Trump earlier this month announced he would levy tariffs of 30 percent against Mexico and the EU beginning Aug. 1 — a move that could cause massive upheaval between the United States and the 27-member EU, of which Hungary is a member.

As a small, export-oriented economy with major automobile, pharmaceutical and wine industries — some of the main categories of products Europe exports to the US — Hungary will be particularly vulnerable to Trump’s tariffs.

The duties “would put the Hungarian economy in a very, very difficult situation, because then the entire possibility for Hungary to export to America would be essentially eliminated,” Péter Virovácz, chief analyst at ING Hungary, told The Associated Press.

‘Not the best way to make money’

Hungary’s largest trading partners are other EU countries like Germany, Italy and Romania, as well as China, but many Hungarian companies export their goods across the Atlantic. Outgoing trade to the United States represents around 15 percent of all Hungarian exports to countries outside the EU.

One such enterprise, a Budapest-based company specializing in Hungarian wine, said it will likely cease doing business in the US altogether if the 30 percent duty is levied on its products.

“If it’s really going to be 30 percent, then there is no more shipment ... We might just call it a day at the end of the year,” said Gábor Bánfalvi, co-owner of Taste Hungary.

Bánfalvi’s company has been shipping around 10,000 bottles of premium Hungarian wine per year to the US for about half a decade. With a base in Washington D.C., it exports a range of red and white wines to clients in numerous US states including specialty wine shops and bars.

Until now, “it’s been a thin profit margin, but it’s been fine because we want Hungarian wine to be available” to US consumers, Bánfalvi said.

“Then came 2025,” he said.

When Trump began imposing tariffs on EU exports earlier this year, the cost of Taste Hungary’s shipments tripled, Bánfalvi said — price hikes he had to build into the sticker price of the wine. The imposition of 30 percent tariffs would make exporting “unsustainable.”

“You just start to think, why are we doing this? Is it really worth it? It’s just not the best way to make money,” he said.

In total, the value of EU-US trade in goods and services in 2024 amounted to 1.7 trillion euros ($2 trillion.)

Doubts that political ties could soften the blow

Hungary’s government, a vocal proponent of Trump’s “patriotic” foreign policy prioritizing national interests, has acknowledged that the tariffs would present a challenge. But, careful not to criticize the Trump administration, it has instead blamed the EU, a frequent target of Orbán’s scorn, for failing to reach a comprehensive trade agreement with Washington.

Confident that his right-wing populist policies would help win him favor with Trump’s administration, Orbán said in an interview in April that while tariffs “will be a disadvantage,” his government was negotiating “other economic agreements and issues that will offset them.”

But Péter Krekó, director of the Budapest-based Political Capital think tank, expressed doubt that political affinities could play a meaningful role in mitigating damage to Hungary’s economy caused by Trump’s trade policy.

“The unquestionably good bilateral relations simply cannot compensate for the trade conflicts between the EU and the US, and as a consequence, Hungary will suffer the tariffs the same way that the EU will,” Krekó said. “Mutual nationalisms cannot be coordinated in a way that it is going to be a win-win situation.”

Car manufacturing and pharmaceuticals

Virovácz, the economist, pointed out that Hungary is home to numerous automobile factories for major automakers like Audi and Mercedes. The manufacturing of cars and motor vehicle parts represents an “overwhelming majority” of the country’s total exports, he said.

Pharmaceuticals make up an even larger share of Hungarian exports to the United States — an industry on which Trump this month threatened to impose 200 percent tariffs. That “will essentially kill European and thus Hungarian exports to America,” Virovácz said.

“It’s impossible for tariffs to be levied on EU products but not on Hungarian ones,” he said. “A theoretical option is that Trump could somehow compensate Hungary because he’s on good terms with the Hungarian political leadership, but if that only starts happening now, it’s way too late.”

Krekó, the political analyst, said Trump’s administration “gives practically nothing for free. If Hungary ... cannot fulfill the interests of the US, then I think Hungary is not going to receive gifts.”

“Hungary just doesn’t have the cards, to use Trump’s terminology,” he added.


India, UK sign multibillion-dollar free trade deal

India, UK sign multibillion-dollar free trade deal
Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer shake hands
Updated 46 min 11 sec ago

India, UK sign multibillion-dollar free trade deal

India, UK sign multibillion-dollar free trade deal
  • FTA expected to boost bilateral trade by more than 60 percent from current $54 billion
  • About 99 percent Indian goods will get duty-free access to the UK market

Indian Prime Minister Narendra Modi signed on Thursday a long-awaited free trade agreement with the UK, which will see tariffs cut on goods and increase market access for both countries.

Modi arrived in London on Wednesday evening to meet his British counterpart Keir Starmer and witness the official signing of the deal by India’s Commerce Minister Piyush Goyal and UK Business Secretary Jonathan Reynolds in the Great Hall of Chequers in Aylesbury.

“This agreement is not merely an economic partnership, but a plan for shared prosperity. On one hand, Indian textiles, footwear, gems and jewelry, seafood and engineering goods will get better market access in the UK. New opportunities will be created in the UK market for India’s agriculture produce and processed food industry,” Modi said during a joint press conference with Starmer.

“For India’s youth, farmers, fishermen, and the MSME sector, this agreement will prove especially beneficial. On the other hand, for the people and industry of India, products made in the UK, such as medical devices and aerospace parts, will become available at accessible and affordable prices.”

A deal-in-principle was announced by Modi and Starmer in late May.

Launched in January 2022, the FTA negotiations between India and the UK were set to conclude the same year, but despite more than a dozen formal rounds, talks have stalled over issues such as tariffs, rules of origin and mobility for services professionals.

Under the new pact, about 99 percent of Indian goods will get duty-free access to the UK market.

It will also halve import duties on UK-produced whiskey and gin from 150 percent, followed by a further decrease to 40 percent in a decade. Tariffs on automobiles will be reduced from 100 percent to 10 percent.

The services part of the deal eases the movement of professionals — from independent practitioners such as yoga instructors, musicians and chefs, to business visitors, investors, contractual service providers and intra-corporate transferees. It also extends work and residence rights to their partners and dependent children

While the pact’s opponents cited concerns that it could undercut British workers, Starmer said after its signing that it “will bring huge benefits to both of our countries, boosting wages, raising living standards and putting more money in the pockets of working people” and that it “is good for jobs, it is good for business, putting tariffs and making trade cheaper, quicker and easier.”

Current bilateral India-UK trade stands at about $54 billion, according to UK Department for Business and Trade data, with UK exports to India estimated at $21.7 billion and imports at $32.4 billion.

Anupam Manur, professor of economics at the Takshashila Institution, told Arab News that the FTA is expected to increase it by more than 60 percent in the next decade.

“The free trade deal with the UK is extremely significant for India, which would result in a $34 billion boost in bilateral trade,” he said.

“From India’s point of view, it stands to gain on both counts; greater choice of products at lower prices due to lower import rates, and free market access to a large, advanced economy.”

India has free trade agreements with more than 10 countries, including Comprehensive Economic Partnership Agreements with South Korea, Japan and the UAE.

It is also in talks with the EU to conclude an FTA by the end of 2025, and with Australia, with an interim deal signed in 2022 and a full one under negotiation.

At the same time, the US is threatening tariffs on India; it wants broader access to several key sectors, including agriculture, automobiles, steel and aluminium — a concession New Delhi resists. Without a deal, Indian exports could face a 26-27 percent “reciprocal” tariff imposed by President Donald Trump’s administration, starting Aug. 1.

“The trade deal with the UK eases the pressure on the Indian side to sign a hastily negotiated deal with the US ... This also acts as a template for how a good trade deal is done without looming deadlines and threats,” Manur said.

“A trade deal with the UK, Australia and the EU will signal to the US administration that India is not desperate for a deal, but will instead negotiate on its own terms.”