UK may have post-Brexit trade deals blocked by the European Union
GETTY Philip Hammond advocates a transitional period to help businesses
A Government position paper published today says that Britain is introducing a “temporary customs union”. Trade Secretary Liam Fox wanted to be able to sign trade deals with non-EU countries straight after Brexit in March 2019. The Government insists that during the transitional period the UK can sign deals with non-EU nations which will take effect at the end of the transition. But this contrasts with an article written by Mr Hammond and Dr Fox at the weekend, which said: “When we’ve left the customs union, we will build on these relationships by negotiating as an independent nation with the freedom to sign bilateral free-trade agreements.”
Jon Moynihan, who chaired the Vote Leave finance committee, wrote on the website Brexit Central: “Holding off on signing our own trade deals right from the get-go in 2019 . . . will be catastrophically bad for our future success as an economy.” Leave.EU has campaigned for the deselection of Mr Hammond and Home Secretary Amber Rudd because they were not “committed to to British independence”. Dr Fox and Foreign Secretary Boris Johnson are unhappy with recent statements by the chancellor that suggest there could be a lengthy transition period in which nothing will change. The transition period is touted as a business friendly Brexit transition in which there will be no need for businesses to fill in additional paperwork, ensuring that goods move smoothly across the EU.
GETTY Jon Moynihan said that holding off on signing trade deals will be catastrophic
Brexit transition phase: Cabinet splits three ways Thu, August 10, 2017 Who is pushing for the most gradual departure possible from the EU? And who favours a cleaner break? Play slideshow AFP/Getty Images 1 of 15 HARD BREXIT: Andrea Leadsom
Director of the British Chambers of Commerce Adam Marshall said: “Business is clear that a smooth transition to new arrangements is needed, and multiple adjustment costs must be avoided.” The customs paper reveal two potential options for Britain’s eventual relationship with the EU. The first involves recreating a customs border using technology to speed up the passage of goods. The second scenario is where Britain and the EU enforce each other’s custom’s rules, removing the need for a new border.
GETTY Boris Johnson and Liam Fox are unhappy with recent statements by the chancellor