Indonesia's President Joko Widodo met Britain's Foreign Secretary Liz Truss at the presidential palace in Jakarta last month. EPA
Indonesia's President Joko Widodo met Britain's Foreign Secretary Liz Truss at the presidential palace in Jakarta last month. EPA
Indonesia's President Joko Widodo met Britain's Foreign Secretary Liz Truss at the presidential palace in Jakarta last month. EPA
Indonesia's President Joko Widodo met Britain's Foreign Secretary Liz Truss at the presidential palace in Jakarta last month. EPA

G7 foreign ministers meet: Liverpool hosts Britain's eastern ambitions


Thomas Harding
  • English
  • Arabic

The ultra-modern architecture of the Museum of Liverpool’s spiralling staircase and giant pillbox window will be the backdrop for Britain’s continuing journey eastward.

Reflecting the city’s imperial past and more left-leaning present, the high galleries will from Friday to Sunday host the G7 foreign ministerial that will focus on how to tap into Asia’s growing economic presence and how to check China’s increasing might.

In her former job as international trade secretary, Liz Truss negotiated several post-Brexit deals that gave her insight into the flourishing East Asian economies — and more importantly into China.

This perhaps explains why the new British foreign secretary invited her counterparts from the Association of South-East Asian Nations (Asean) to the conference of the democratic world's leading seven nations.

The Omicron variant means that representatives from Malaysia, Thailand and Indonesia on Sunday morning will join the meeting virtually, but that should not put off the real business.

The Museum of Liverpool will host the G7 foreign ministers' meeting. Darren Robinson / The National
The Museum of Liverpool will host the G7 foreign ministers' meeting. Darren Robinson / The National

Ms Truss has shown a demonstrable interest in Asia, with her first speech as foreign secretary on Wednesday mentioning Asean nations twice.

Closer relationship on the agenda

So what is the invitation’s subtext? The communist elite in Beijing clearly cannot avoid the message that the West is steadily moving to check its influence in Asia.

Hostile words from politicians in Britain, the US and Australia are one thing, but there now appears a clear objective to forge alliances with Indo-Pacific countries and the 10 countries of Asean in particular.

There are some in Asean who will be dissuaded from forging such alliances due to the reaction from Beijing, which others that have been trampled on by China may see it as an insurance policy to build closer ties with the West.

None of this is said in official western diplomacy, however, at least not directly. Diplomats have made clear that they recognise the importance of Asean countries and now want to take matters to a more formal footing.

Over the next decade, it is predicted that 90 per cent of world trade will be done in Asia, hence the shift in interest to the Indo-Pacific region.

The Asean invitation is linked to the G7 becoming more broad-based, with Indo-Pacific trade and security in its sights, suggests Michael Clarke.

“The UK’s tilt is very much a political one more than anything else,” said the Royal United Services Institute think tank expert.

“It’s to create better dialogues with significant Asian countries and we know that Liz Truss is genuinely keen, that she's a convert to the Indo-Pacific mission.”

He also suggests that the manoeuvres are part of a “significant push to condense China across the region”, with Australia leading the way.

“Britain shares the view that we shouldn't be frightened of China and we want to show that our options are not constrained by fear of China,” he added.

Submarine row echoes

China could view the G7 expansion as a further development of September’s Aukus agreement — in which the UK and the US agreed to build nuclear-powered submarines for Australia — and that it is facing an increasingly hard-edged military approach.

US Secretary of State Antony Blinken arrives at Liverpool John Lennon Airport. AFP
US Secretary of State Antony Blinken arrives at Liverpool John Lennon Airport. AFP

The Asean invitation might also be a diplomatic move to placate Indonesia and Malaysia, which have criticised the agreement.

This is not something Ms Truss readily admits to.

“I will be hosting our friends and partners to discuss how we build closer economic, technology and security ties globally,” she said in a statement.

“I want us to build a worldwide network of liberty that advances freedom, democracy and enterprise and encourages like-minded countries to work together from a position of strength.”

Ms Truss is also said to be very keen to show that the G7 has, in a practical sense, an attractive offer to make to the Asean countries.

While Britain to some degree tempers its views on China, the US has been more direct.

“On security, [US Secretary of State Antony Blinken’s] meetings will focus on strengthening the regional security infrastructure in response to [China's] bullying in the South China Sea,” Daniel Kritenbrink, US assistant secretary of state for East Asian and Pacific affairs, said on Wednesday.

The US strategy of gathering allies that surround its rival is clear. After Liverpool, Mr Blinken will travel to Indonesia, Malaysia and Thailand as part of President Joe Biden’s “sustained engagement with Indo-Pacific countries”, said Mr Kritenbrink.

“America’s security and economic interests are intrinsically tied to the preservation of the rules-based order that has served all of us so well. President Biden is committed to elevating US-Asean engagement to unprecedented levels, expanding our formal engagement and co-operation,” he added.

The message to China is clear: if it does not abide by the international rules-based system, Britain, the US and their growing list of potential allies will counter it as a powerful bloc.

The great unknown is, when challenged by this, will Beijing choose concession or confrontation?

Tips to avoid getting scammed

1) Beware of cheques presented late on Thursday

2) Visit an RTA centre to change registration only after receiving payment

3) Be aware of people asking to test drive the car alone

4) Try not to close the sale at night

5) Don't be rushed into a sale 

6) Call 901 if you see any suspicious behaviour

Director: Laxman Utekar

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

Rating: 1/5

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if you go

The flights Fly Dubai, Air Arabia, Emirates, Etihad, and Royal Jordanian all offer direct, three-and-a-half-hour flights from the UAE to the Jordanian capital Amman. Alternatively, from June Fly Dubai will offer a new direct service from Dubai to Aqaba in the south of the country. See the airlines’ respective sites for varying prices or search on reliable price-comparison site Skyscanner.

The trip 

Jamie Lafferty was a guest of the Jordan Tourist Board. For more information on adventure tourism in Jordan see Visit Jordan. A number of new and established tour companies offer the chance to go caving, rock-climbing, canyoning, and mountaineering in Jordan. Prices vary depending on how many activities you want to do and how many days you plan to stay in the country. Among the leaders are Terhaal, who offer a two-day canyoning trip from Dh845 per person. If you really want to push your limits, contact the Stronger Team. For a more trek-focused trip, KE Adventure offers an eight-day trip from Dh5,300 per person.

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 

Warlight,
Michael Ondaatje, Knopf 

Tuesday's fixtures
Group A
Kyrgyzstan v Qatar, 5.45pm
Iran v Uzbekistan, 8pm
N Korea v UAE, 10.15pm
Company%20profile
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The specs: 2018 Alfa Romeo Stelvio

Price, base: Dh198,300
Engine: 2.0L in-line four-cylinder
Transmission: Eight-speed automatic
Power: 280hp @ 5,250rpm
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Fuel economy, combined: 7L / 100km

The specs: 2017 Lotus Evora Sport 410

Price, base / as tested Dh395,000 / Dh420,000

Engine 3.5L V6

Transmission Six-speed manual

Power 410hp @ 7,000rpm

Torque 420Nm @ 3,500rpm

Fuel economy, combined 9.7L / 100km

The%20specs%20
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The specs

Engine: 2.9-litre, V6 twin-turbo

Transmission: seven-speed PDK dual clutch automatic

Power: 375bhp

Torque: 520Nm

Price: Dh332,800

On sale: now

UAE currency: the story behind the money in your pockets
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

Chef Nobu's advice for eating sushi

“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”

Race results:

1. Thani Al Qemzi (UAE) Team Abu Dhabi: 46.44 min

2. Peter Morin (FRA) CTIC F1 Shenzhen China Team: 0.91sec

3. Sami Selio (FIN) Mad-Croc Baba Racing Team: 31.43sec

Updated: December 10, 2021, 12:04 PM