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| Brexit deal should not 'drag on' until after next election, says Liam Fox | Brexit deal should not 'drag on' until after next election, says Liam Fox |
| (35 minutes later) | |
| Liam Fox has conceded Britain is likely to seek a transitional deal until 2022 after leaving the European Union, but said the arrangements should not “drag on” until after the next general election. | Liam Fox has conceded Britain is likely to seek a transitional deal until 2022 after leaving the European Union, but said the arrangements should not “drag on” until after the next general election. |
| The international trade secretary has previously said interim arrangements for trade, customs and immigrations should last no longer than “a few months” but said Brexiteers in the cabinet were now prepared for a longer transition. | The international trade secretary has previously said interim arrangements for trade, customs and immigrations should last no longer than “a few months” but said Brexiteers in the cabinet were now prepared for a longer transition. |
| Last week, senior cabinet sources suggested the government was united in its need to seek an “off-the-shelf” transitional arrangement, in which Britain would likely remain in the single market and retain free movement for at least two years after the UK formally leaves the EU in March 2019. | Last week, senior cabinet sources suggested the government was united in its need to seek an “off-the-shelf” transitional arrangement, in which Britain would likely remain in the single market and retain free movement for at least two years after the UK formally leaves the EU in March 2019. |
| Speaking from Washington, Fox said a transitional arrangement would be a practical issue. “We will look to see what we are going to do in terms of making that a smooth transition for our businesses, to give them maximum certainty and to cause minimal disruption,” he told BBC1’s Andrew Marr Show. | Speaking from Washington, Fox said a transitional arrangement would be a practical issue. “We will look to see what we are going to do in terms of making that a smooth transition for our businesses, to give them maximum certainty and to cause minimal disruption,” he told BBC1’s Andrew Marr Show. |
| “Frankly, having waited for over 40 years to leave the European Union, 24 months would be a rounding area, whether that’s 23, whether that’s 25 is not a huge deal and nor is it an ideological one. It’s about the practical issues we would face about getting, for example, any new immigration system into place, getting any new customs system into place.” | “Frankly, having waited for over 40 years to leave the European Union, 24 months would be a rounding area, whether that’s 23, whether that’s 25 is not a huge deal and nor is it an ideological one. It’s about the practical issues we would face about getting, for example, any new immigration system into place, getting any new customs system into place.” |
| The trade secretary said there were still differences within the cabinet about what precisely a transitional arrangement should entail, especially the effect it would have on his own department. “Would we be able to negotiate our own trade agreements during that transition period? Because if we were not, then we wouldn’t be able to take full advantage of the freedoms available to us when we leave the European Union,” he said. | The trade secretary said there were still differences within the cabinet about what precisely a transitional arrangement should entail, especially the effect it would have on his own department. “Would we be able to negotiate our own trade agreements during that transition period? Because if we were not, then we wouldn’t be able to take full advantage of the freedoms available to us when we leave the European Union,” he said. |
| “So there’s still a discussion to be had, but I don’t think that there’s any great ideological blockage on the concept of a transition or an implementation period as I would rather put it.” | “So there’s still a discussion to be had, but I don’t think that there’s any great ideological blockage on the concept of a transition or an implementation period as I would rather put it.” |
| Fox’s comments are understood to reflect No 10’s thinking on a transition period. “An implementation period and the detail of that is a matter for the negotiations but clearly the ability to start negotiating trade deals after March 2019 is something we would want,” a Downing Street source said. | |
| Fox said he believed the government would conclude the transitional period by 2022 because the cabinet would “want to get it out of the way before the election ... I don’t think people would want to have it dragging on.” | Fox said he believed the government would conclude the transitional period by 2022 because the cabinet would “want to get it out of the way before the election ... I don’t think people would want to have it dragging on.” |
| Both the chancellor, Philip Hammond, and the business secretary, Greg Clark, are staunch proponents of a transitional deal that retains the current trading arrangement with the EU, warning of the dangers of a cliff edge for businesses. | Both the chancellor, Philip Hammond, and the business secretary, Greg Clark, are staunch proponents of a transitional deal that retains the current trading arrangement with the EU, warning of the dangers of a cliff edge for businesses. |
| Fox has previously clashed with Hammond over whether the UK should be prioritising seeking free trade deals, with the chancellor saying such deals would have limited benefit for the UK. “Much of our trade with the world is service trade, where free trade agreements won’t make any particular difference,” the chancellor said at the G20 in Hamburg earlier this month. | Fox has previously clashed with Hammond over whether the UK should be prioritising seeking free trade deals, with the chancellor saying such deals would have limited benefit for the UK. “Much of our trade with the world is service trade, where free trade agreements won’t make any particular difference,” the chancellor said at the G20 in Hamburg earlier this month. |
| Fox aimed a thinly veiled barb at the chancellor’s comments in a piece in the Sunday Times this week. | Fox aimed a thinly veiled barb at the chancellor’s comments in a piece in the Sunday Times this week. |
| “Having the world’s largest economy publicly show commitment to increasing trade with us is not something we should sneer at,” he said, referring to Donald Trump’s positive comments about a quick trade deal with the UK post-Brexit. | “Having the world’s largest economy publicly show commitment to increasing trade with us is not something we should sneer at,” he said, referring to Donald Trump’s positive comments about a quick trade deal with the UK post-Brexit. |
| The environment secretary, Michael Gove, insisted on Friday that the UK should not take part in a “race to the bottom” to win new trading relationships. “Of course it’s important we explore new trading opportunities, with the United States and other nations across the world, but it must not be, and the cabinet is agreed on this, at the risk of dropping any environmental standards whatsoever,” he said. | The environment secretary, Michael Gove, insisted on Friday that the UK should not take part in a “race to the bottom” to win new trading relationships. “Of course it’s important we explore new trading opportunities, with the United States and other nations across the world, but it must not be, and the cabinet is agreed on this, at the risk of dropping any environmental standards whatsoever,” he said. |