British Prime Minister Boris Johnson spoke to US President Joe Biden from London after his inauguration. Reuters
British Prime Minister Boris Johnson spoke to US President Joe Biden from London after his inauguration. Reuters
British Prime Minister Boris Johnson spoke to US President Joe Biden from London after his inauguration. Reuters
British Prime Minister Boris Johnson spoke to US President Joe Biden from London after his inauguration. Reuters

Biden says diplomacy is back – Boris Johnson should listen


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When Bill Clinton left the White House in January 2001, he was replaced by the conservative Texas Republican George W Bush. As Mr Bush was inaugurated, I asked an American policy adviser for advice: the British government of Tony Blair had been very close to Mr Clinton, so how should Mr Blair deal with Mr Bush’s very different administration?

The response was that Mr Bush and Mr Blair inevitably would work together well, but Mr Blair should get as close as possible to Mr Bush, despite their very different ideological mindsets. Perhaps Mr Blair received similar advice from his own advisers.

Certainly by the 2003 invasion of Iraq, the two politicians moved in lockstep. Mr Blair had some influence in persuading Mr Bush to work within the UN. Mr Bush had Mr Blair – and the British military forces – as allies for the overthrow of Iraqi dictator Saddam Hussein.

Then British prime minister Tony Blair and then US president George W Bush attend a news conference in 2005. Blair was squarely behind Bush's decision to invade Iraq two years earlier. Reuters
Then British prime minister Tony Blair and then US president George W Bush attend a news conference in 2005. Blair was squarely behind Bush's decision to invade Iraq two years earlier. Reuters

As another US diplomat once said to me, “when we say multilateral, we mean 'get the Brits on board'". For “the Brits”, that has often meant talking up a “special relationship” with the US. Since the Second World War, a central ambition of British diplomacy has been to act as a bridge between the US and its European allies.

But now?

The UK-US relationship was seriously tested during the Trump presidency. The former UK ambassador in Washington during the Obama years, Peter Westmacott, has been discussing the ups and downs in his new book, They Call It Diplomacy. Mr Westmacott had 40 years representing Britain abroad. He is scathing about the Trump administration but also revealing about the UK's strategic weakness. As he puts it: "Britain's first instinct, especially when it does not know what to do, is to ask the Americans, but that was near impossible when US policy was being made by early-hour tweet."

Donald Trump's undiplomatic Twitter diplomacy was made worse by the fact that he did not think much of his own American experts, the career diplomats in the US State Department. He didn't fill key posts, and he couldn't retain talent in key positions.

In policy terms, there was plenty of hollow talk about the possibility of a rapid UK-US trade deal after Brexit. Such agreements are complex treaties that take years to negotiate and ultimately have to pass through the US Congress.

Then British foreign secretary Boris Johnson refused to give Kim Darroch, right, his backing after the latter's secret emails criticising the Trump administration were leaked in 2019. EPA
Then British foreign secretary Boris Johnson refused to give Kim Darroch, right, his backing after the latter's secret emails criticising the Trump administration were leaked in 2019. EPA

When Mr Westmacott's successor as British ambassador, Kim Darroch, suggested in private emails to London that the Trump administration was dysfunctional, you might think this was hardly "Top Secret". But when the emails were leaked, Mr Trump had one of his fits of pique and made clear that Mr Darroch should go. The British foreign secretary at the time was Boris Johnson, who supinely refused to back Mr Darroch for stating what was utterly obvious. Mr Darroch had to resign – a sad moment when a diplomat with an impeccable record loses his job for the crime of telling the truth in confidential cables to his own government.

All this is just background to the obvious fact that the US-UK relationship is very close but also very unequal.

A new generation of British diplomats must now reset relations once more to make sense of a new – but more predictable – US administration. Joe Biden promises great change and has begun delivering. The Biden reset means that the US is back in the game of seeking international co-operation, playing a prominent and often leadership role in international bodies including Nato, the WHO, and on climate change.

"America is back; diplomacy is back," Mr Biden told State Department staff in a morale-raising visit. He has spoken to friendly world leaders "to begin re-forming the habits of co-operation and rebuilding the muscles of democratic alliances that have atrophied over the past few years of neglect and abuse".

Diplomats no longer have to worry that a 5am tweet from a listless president will wreck all their careful conversations

Some world leaders, seen as close to Mr Trump, were not high on Mr Biden's list for a chat, including Israel and Turkey. Mr Biden has withdrawn support for the war in Yemen. He has cancelled Mr Trump's order to pull 12,000 troops out of Germany. There has a been a difficult phone call with Vladimir Putin and the US relationship with China – and Taiwan – is about to enter a new phase, too, although the next steps are unclear.

In London, meanwhile, there is excitable talk in government circles about a post-Brexit "Global Britain". But it is without any clear meaning beyond the Trade Secretary enthusing about a possible trade pact with Pacific nations. Pulling out of the European Single Market while pushing for a Pacific trade deal seems a bit odd for the British isles, which, geography suggests, are fated to remain on the other side of the world in the Atlantic. Moreover, that old idea of an American president ever having to call Europe by going through a British switchboard is as antiquated as the telephone technology of the 1950s and 60s.

However, there are grounds for optimism. British diplomats – the skilled successors to Mr Westmacott and Mr Darroch – have equally skilled American counterparts now to work with. And, at least, diplomats from all countries no longer have to worry that a 5am tweet from a listless president will wreck all their careful conversations.

Gavin Esler is a broadcaster and UK columnist for The National

Roger Federer's 2018 record

Australian Open Champion

Rotterdam Champion

Indian Wells Runner-up

Miami Second round

Stuttgart Champion

Halle Runner-up

Wimbledon Quarter-finals

Cincinnati Runner-up

US Open Fourth round

Shanghai Semi-finals

Basel Champion

Paris Masters Semi-finals

 

 

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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

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Australia 580
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Result: Australia win by an innings and five runs

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Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.