Former UK Leaders Unite to Slam Boris Johnson on Brexit Plan

Prime Minister Boris Johnson. (Reuters)
Prime Minister Boris Johnson. (Reuters)
TT

Former UK Leaders Unite to Slam Boris Johnson on Brexit Plan

Prime Minister Boris Johnson. (Reuters)
Prime Minister Boris Johnson. (Reuters)

Two former British prime ministers who played crucial roles in bringing peace to Northern Ireland joined forces Sunday to urge lawmakers to reject government plans to override the Brexit deal with the European Union, arguing that it imperils that peace and damages the UK's reputation.

In an article in The Sunday Times, John Major and Tony Blair slammed the current British government for “shaming” the country with legislation that, in places, goes against the very deal it signed to allow for the UK's smooth departure from the EU earlier this year.

Major, a Conservative prime minister from 1990 to 1997, and Blair, his Labor successor for a decade, said Prime Minister Boris Johnson's Internal Market Bill “questions the very integrity" of the UK.

“This government’s action is shaming itself and embarrassing our nation," they said.

The planned legislation, which will be debated by British lawmakers this week, has led to a furious outcry within the EU as it would diminish the bloc's previously agreed oversight of trade between mainland Britain and Northern Ireland if a UK-EU trade agreement isn’t secured.

The British government has admitted that the legislation would break international law, but argues that it's an insurance policy in the event a trade deal with the EU is not secured by the end of this year.

Johnson has said the legislation is needed to end EU threats to impose a “blockade” in the Irish Sea that the prime minister asserted could “carve up our country.” EU leaders have furiously rejected that charge.

Justice Secretary Robert Buckland told the BBC on Sunday that the legislation was a “break the glass in emergency provision," if needed, and that he would resign if he believed the rule of law was broken in an “unacceptable” way.

“I don’t believe we’re going to get to that stage,” he said.

With the British government showing no sign of changing course, there are real concerns that the talks on a future trade deal between the UK and the EU could collapse within weeks. If that happens, tariffs and other impediments to trade will be imposed by both sides at the start of 2021.

The UK left the EU on Jan. 31, but it is in a transition period that effectively sees it benefit from the bloc’s tariff-free trade until the end of the year while a future relationship is negotiated. Even before the latest standoff, discussions between the EU’s chief negotiator, Michel Barnier, and his UK counterpart, David Frost, had made very little progress.

One major element of the Brexit withdrawal agreement is the section related to ensuring an open border on the island of Ireland to protect the peace process in Northern Ireland.

The issue proved thorny during the more than two years of discussions it took to get a Brexit deal done, as the border between Northern Ireland and Ireland is the only land link between the UK and the EU.

The EU wanted assurances the border would not be used as a back route for unlicensed goods arriving in Ireland from the rest of the UK — England, Scotland and Wales. As a result, the two sides agreed there would be some kind of regulatory border between mainland Britain and Northern Ireland.

Major and Blair, who both vociferously opposed Brexit, said the planned legislation puts the 1998 Good Friday agreement that ended decades of violence in Northern Ireland at risk.

Th pair said the bill "negates the predictability, political stability and legal clarity that are integral to the delicate balance between the north and south of Ireland that is at the core of the peace process.”

It's unclear whether the planned legislation will get through the British Parliament, with a number of Johnson's fellow Conservatives uneasy at the prospect of the government breaching international law.

Tobias Ellwood is one lawmaker who has said he could not accept the legislation, arguing that the bill diminishes “our role-model status as defender of global standards.”



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
TT

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
TT

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
TT

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.