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EU could block UK trade deals for three years after Brexit: Government’s plans for smooth transition may let Eurocrats delay new global deals during ‘interim period’

  • Ministers are proposing the UK will start making trade deals the day after Brexit
  • But the deals will be implemented three years after the UK leaves the EU in 2019
  • This means the EU could potentially block Britain’s trade deals even after Brexit
David Davis (pictured) will ask Brussels to keep its custom rules to make the change a smooth transition
David Davis (pictured) will ask Brussels to keep its custom rules to make the change a smooth transition

Britain will today demand that it is allowed to start striking trade deals the day after Brexit – while creating a temporary EU customs deal to prevent border chaos.

Brexit Secretary David Davis will set out plans to begin ‘negotiating bold new trade relationships around the world’ as soon as the country leaves the EU in March 2019.

But he will ask Brussels to keep in place current customs rules that prevent goods having to be checked as they go between Britain and the EU for an interim period, which could last up to two or three years.

Mr Davis will argue that such a deal, where the UK mimics the EU’s tariffs and rules on customs, would give more time for a smooth switch to the new trading regime, which would benefit businesses on both sides of the Channel.

Ministers have been warned about the strain ports could be put under if they face a sudden increase in bureaucracy for dealing with goods entering and leaving the country.

Mr Davis will argue that while maintaining a temporary customs arrangement, the country must be allowed to begin developing a trade policy that makes it ‘more outward-looking than ever before’ as soon as possible.

‘As we exit the EU, we must not only seek to secure our existing markets, but also to tap into new, growing markets across the globe’, he will say.

Under EU rules, member states are forbidden from striking their own trade deals with other countries. The Government will insist that it is allowed to begin this work as soon as it leaves the EU, even if the current EU customs regime remains in place on a temporary basis. But Brussels may put ministers under pressure to promise that these new deals will only come into force at the end of the interim period.

In the longer term, Mr Davis will say he is seeking ‘the most frictionless customs arrangement anywhere’, with minimal checks and paperwork on goods going between the EU and UK.

One option being put forward by Mr Davis would see the UK manage a new customs border with administration streamlined to the ‘fullest extent possible’ using technology.

He will also float plans for a customs partnership with the EU that would negate the need for a customs border between the UK and the rest of the bloc.

Negotiations on future customs arrangements are not due to be discussed during the next round of Brexit talks to be held in Brussels at the end of this month.

The European Commission has said progress first needs to be made on agreeing the divorce bill before work can begin on the future relationship between the EU and UK.

But Downing Street said it was pushing forward with setting out its plans in order to help businesses both in Britain and across the continent.

Mr Davis (pictured with EU Chief Brexit Negotiator Michel Barnier) will argue Britain must be allowed to begin developing a trade policy that makes it 'more outward-looking than ever before'

The Prime Minister’s spokesman said yesterday: ‘We have had the first round of the negotiations and those talks have shown that many of the withdrawal questions can only be settled in light of the future partnership. So now is the time to set out our approach to that partnership to inform the negotiations and to provide citizens and business at home and across Europe with a deeper understanding of our thinking.’

Business leaders last night welcomed the Government’s plan to minimise disruption to trade.

Josh Hardie, deputy director-general of the Confederation of British Industry, said he was encouraged that the papers propose a time-limited interim period and a customs system that is as barrier-free as possible.

He added: ‘All efforts should be made to deliver a single-step transition, so that businesses don’t have to adapt twice.’

But Labour MP Chris Leslie, a leading supporter of the Open Britain campaign group, accused ministers of ‘wanting to have their cake and eat it’.

He said: ‘It is a fantasy to pretend we can have the freest and most frictionless trade possible with our largest partner when the Government remain intent on pulling Britain out of the customs union.’

Downing Street last night announced that Theresa May will embark on a visit to Japan at the end of this month in a bid to boost Britain’s post-Brexit trade.

The Prime Minister, who is currently in Switzerland on holiday, will be received by emperor Akihito and the Japanese prime minister Shinzo Abe.

Mrs May will be accompanied on the trip by business leaders from a range of sectors.

  • Former Ukip donor Arron Banks has written to every voter in Philip Hammond and Amber Rudd’s constituencies to try to get them deselected.

The Chancellor, MP for Runnymede and Weybridge, and the Home Secretary, MP for Hastings and Rye, favour a ‘softer Brexit’ than tycoon Mr Banks, chairman of the campaign group Leave.EU.

Read more: http://www.dailymail.co.uk/news/article-4790896/EU-block-UK-trade-deals-three-years-Brexit.html#ixzz4poSceRJH
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http://www.dailymail.co.uk/news/article-4790896/EU-block-UK-trade-deals-three-years-Brexit.html

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3 Comments on "EU could block UK trade deals for three years after Brexit: Government’s plans for smooth transition may let Eurocrats delay new global deals during ‘interim period’"

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Jeremy Wraith
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Why is there all this panic over trade deals with the EU? There are only two groups for the UK to trade with: the EU and the rest of the world (ROW). Since 1973 our current total balance of trade with the EU is a staggering DEFICIT of well over £1.25 trillion! With the ROW we have a SURPLUS of over £200 billion. Being in the “Tariff Free Single Market” is currently costing the UK taxpayer about £3 billion/annum in lost import duties. Our exporters to the EU can benefit hugely after we leave the EU and start to reduce… Read more »
Jane Davies
Guest

No no no……just walk away from this complete Horlicks and then see them change their attitude.

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