Sir Keir Starmer has been warned that a trade failure could risk belligerent powers pushing East in a major blow to the Aukus defence deal.
The Prime Minister’s inability to appoint trade envoys for countries such as Canada, United Arab Emirates and Mongolia was condemned by top Tories amid concerns that the critical mineral supply chain is not being taken seriously.
Mongolia, which is landlocked between Russia and China, looks set to pivot towards both powers after inviting Russian President Vladimir Putin and Chinese Vice President Han Zheng to hold meetings with the country’s leadership.
Ex-Shrewsbury MP Daniel Kawczynski was designated as the trade envoy under the former Conservative Government before the post was canned in appointments made last month.
Keir Starmer’s inability to appoint trade envoys for countries such as Canada, United Arab Emirates and Mongolia was condemned by top Tories
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Condemning the decision, Tory MP Ben Obese-Jecty expressed his “concerns” about the Government’s capability of pushing ahead with diversifying supply chains, highlighting how Moscow and Beijing could look to seize the opportunity.
The Huntingdon MP, who served as a captain in the British Army, told GB News: “The past months have seen a marked uptick in global diplomatic engagement with Mongolia.
“Vladimir Putin, President Erdogan and Chinese Vice President Han Zheng have all held meetings with the country’s leadership.
“The Government should therefore explain why we appear to be conceding UK influence and our relationship with a deeply mineral-rich country.”
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Vladimir PutinGettyA former Whitehall insider added: “In a pre-war age, critical minerals have never been more essential to bolstering our defence capabilities.
“The Government must look to engage with nations such as Mongolia who are increasingly pointing East.”
Demand for critical minerals, which is key for the construction of nuclear submarines, is predicted to increase four-fold by 2040.
The shift is expected to follow on from the global energy transition, with growing geo-political competition forcing countries to invest heavily in the minerals-hungry defence sector.
Tory MP Ben Obese-Jecty
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However, the latest intervention from Obese-Jecty comes just a few months after the People’s Channel highlighted growing concerns about the potential threat of Russo-Chinese influence on Aukus.
Speaking to GB News, ex-Trade Minister Sir Conor Burns said: “As a key supplier of the critical minerals which will power the global energy transition the Mongolian government should be positioning itself to maximise its advantage and attract inward investment not deter it.
“The critical minerals supply is also essential to Aukus and the UK Government must not turn a blind eye to this.”
Britain pivoted its attention to Mongolia in 2023 when then-Industry Minister Nusrat Ghani visited to promote securing a critical mineral supply chain.
Ghani highlighted how the world is becoming increasingly dependent on critical minerals at a time when Ulaanbaatar was looking to reduce the influence of foreign companies bankrolling strategic assets in Mongolia.
Keir StarmerPAA proposed amendment to the Minerals Law could impact UK-run Rio Tinto as it looks to force private owners to reduce their ownership to a maximum stake of 34 per cent.
Liberal Democrat MP Richard Foord, who was recently appointed to the Foreign Affairs Select Committee, also expressed his concerns about the Mongolian government’s choice to host Putin for a high-level diplomatic visit in September this year.
He said: “I am disappointed by the Mongolian government’s decision to host Vladimir Putin, and to ignore its obligation, as an ICC member state, to arrest him.”
Despite heavy reliance on Australian critical minerals, the UK has also warned about the threat posed by Beijing in the region.
In a report released in December 2023, now-Shadow Foreign Minister Alicia Kearns said: “It is particularly clear that we need to confront the weakness created by our dependency on a single state: China.
Vladimir Putin
GETTY“These minerals power modern life and if China pulls the plug, we will all pay the price.”
However, the Foreign Office stressed in November that it was looking to diversify access to critical minerals and established UK Export Finance to help minimise supply-chain disruption.
Indo-Pacific Minister Catherine West also raised the issue of critical minerals during her visit to Mongolia in August.
Responding to concerns about the recent appointment of trade envoys, a spokesman for the Department of Business and Trade told GB News: “Our new global growth team of Trade Envoys will focus on unlocking new markets around the world for British businesses as part of our Plan for Change.
“Markets where there are no Trade Envoys will still continue to receive support alongside our other initiatives for exporters and investors, ensuring we seize opportunities both at home and abroad.”
