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David Davis to give trade deals pledge amid Brexit row David Davis to give trade deals pledge amid Brexit row
(about 2 hours later)
David Davis will say the UK will be able to negotiate trade deals as soon as it leaves the EU, amid a Tory row over the UK's approach to Brexit.David Davis will say the UK will be able to negotiate trade deals as soon as it leaves the EU, amid a Tory row over the UK's approach to Brexit.
Chancellor Philip Hammond suggested on Thursday that changes to the UK-EU trade relations could be "very modest".Chancellor Philip Hammond suggested on Thursday that changes to the UK-EU trade relations could be "very modest".
No 10 distanced itself from his remarks and one Tory MP said he should "stick to the script" the PM had laid out.No 10 distanced itself from his remarks and one Tory MP said he should "stick to the script" the PM had laid out.
Mr Davis will say that the UK will be able to sign new trade deals in the "transition" period after March 2019.Mr Davis will say that the UK will be able to sign new trade deals in the "transition" period after March 2019.
The UK is due to leave the European Union on 29 March 2019, after which the UK is expected to negotiate its own trade deals, rather than being part of the deals drawn up on behalf of all EU member states.The UK is due to leave the European Union on 29 March 2019, after which the UK is expected to negotiate its own trade deals, rather than being part of the deals drawn up on behalf of all EU member states.
But a time-limited transitional or "implementation" period - thought likely to last up to two years - is expected to come into force first, before the terms of the UK's ultimate relationship with the EU have been finalised.But a time-limited transitional or "implementation" period - thought likely to last up to two years - is expected to come into force first, before the terms of the UK's ultimate relationship with the EU have been finalised.
Tories' Brexit agonies resurfaceTories' Brexit agonies resurface
By BBC political editor Laura KuenssbergBy BBC political editor Laura Kuenssberg
If the Tory party had wanted intentionally to display just how divided they are over Brexit and how generally twitchy they are, they could hardly have done a better job.If the Tory party had wanted intentionally to display just how divided they are over Brexit and how generally twitchy they are, they could hardly have done a better job.
Not in off-the-cuff remarks but in scripted comments, one of the most convinced Brexit "softies" in the Cabinet, the chancellor himself, told delegates in Davos that he believed, hopefully, that the changes between the EU and UK economies would be "very modest", as we leave the European bloc.Not in off-the-cuff remarks but in scripted comments, one of the most convinced Brexit "softies" in the Cabinet, the chancellor himself, told delegates in Davos that he believed, hopefully, that the changes between the EU and UK economies would be "very modest", as we leave the European bloc.
Meanwhile, the emboldened voice of backbench Brexiteers, Jacob Rees-Mogg, had prepared a speech of his own, accusing ministers of being cowed by the EU and calling for the government to stiffen its sinews in the Brexit talks or risk letting down voters and opting only for a "managed decline".Meanwhile, the emboldened voice of backbench Brexiteers, Jacob Rees-Mogg, had prepared a speech of his own, accusing ministers of being cowed by the EU and calling for the government to stiffen its sinews in the Brexit talks or risk letting down voters and opting only for a "managed decline".
Read more from Laura Kuenssberg's blog here.Read more from Laura Kuenssberg's blog here.
In a speech in Middlesbrough at 1430 GMT, Mr Davis will say that the UK would still effectively follow the rules of the EU customs union for the period immediately after Brexit and no trade deals could come into force until it ends.In a speech in Middlesbrough at 1430 GMT, Mr Davis will say that the UK would still effectively follow the rules of the EU customs union for the period immediately after Brexit and no trade deals could come into force until it ends.
But he will say: "As an independent country - no longer a member of the European Union - the United Kingdom will once again have its own trading policy.But he will say: "As an independent country - no longer a member of the European Union - the United Kingdom will once again have its own trading policy.
"For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe.""For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe."
He is also expected to say the UK wants to stay in the EU's existing trade deals with other countries - although there is no guarantee Brussels will agree.He is also expected to say the UK wants to stay in the EU's existing trade deals with other countries - although there is no guarantee Brussels will agree.
'Stick to script''Stick to script'
The speech comes amid a row in his party over the government's approach to Brexit negotiations with influential Tory backbencher Jacob Rees-Mogg accusing UK negotiators of being "cowed by the EU".The speech comes amid a row in his party over the government's approach to Brexit negotiations with influential Tory backbencher Jacob Rees-Mogg accusing UK negotiators of being "cowed by the EU".
Mr Hammond's comments at the World Economic Forum in Davos on Thursday have also provoked a backlash. The UK chancellor said the government was not seeking an "off-the-shelf" model to replace the membership of the EU single market and customs union. Mr Hammond's comments at the World Economic Forum in Davos on Thursday have also provoked a backlash.
The UK chancellor said the government was not seeking an "off-the-shelf" model to replace the membership of the EU single market and customs union.
"We are taking two completely interconnected and aligned economies with high levels of trade between them and selectively moving them - hopefully very modestly - apart," he said."We are taking two completely interconnected and aligned economies with high levels of trade between them and selectively moving them - hopefully very modestly - apart," he said.
But a Downing Street spokesman said: "While we want a deep and special economic partnership with the EU after we leave, these could not be described as very modest changes."But a Downing Street spokesman said: "While we want a deep and special economic partnership with the EU after we leave, these could not be described as very modest changes."
And Eurosceptic Conservative backbenchers lined up to criticise the chancellor. Asked whether his comments had been destabilising for the prime minister, Mr Hammond told the BBC: "I think the context is important. I was speaking about our trade relationship with the EU, and it is the government's policy that we want to maintain the maximum possible access to markets and the minimum friction at our borders because that's good for the British economy, it's good for British jobs and it's good for British prosperity."
But Eurosceptic Conservative backbenchers lined up to criticise the chancellor.
Bernard Jenkin told the BBC: "I think it would be much easier for the prime minister to do her job if everyone just stuck to her script and I think that is what he should do."Bernard Jenkin told the BBC: "I think it would be much easier for the prime minister to do her job if everyone just stuck to her script and I think that is what he should do."
Whilst Conor Burns made a more subtle dig on his Twitter account:Whilst Conor Burns made a more subtle dig on his Twitter account:
And former cabinet minister Owen Paterson told the BBC that Mr Hammond "appeared to be transmitting the standard Treasury view that this is all a nightmare, all a big mistake and it should be minimised".And former cabinet minister Owen Paterson told the BBC that Mr Hammond "appeared to be transmitting the standard Treasury view that this is all a nightmare, all a big mistake and it should be minimised".
He said government policy was very clear, that the UK was leaving the single market and the customs union and it would be "very good if all cabinet ministers rowed in behind it".He said government policy was very clear, that the UK was leaving the single market and the customs union and it would be "very good if all cabinet ministers rowed in behind it".
Former Conservative MP Lord Forsyth told the BBC's Question Time Mr Hammond had appeared to "say something that's completely at odds with what the prime minister said in her Lancaster House speech" - in which she set out the UK's strategy for Brexit.
"Theresa May needs to get a grip on the cabinet and the cabinet needs to get behind her," he said.
Health Secretary Jeremy Hunt said the changes to regulations after Brexit would be "absolutely not modest" but told BBC Radio 4's Today the chancellor's point was that "we should be able to expect very limited and possibly no changes to market access as a result of the free trade deal that we negotiate".Health Secretary Jeremy Hunt said the changes to regulations after Brexit would be "absolutely not modest" but told BBC Radio 4's Today the chancellor's point was that "we should be able to expect very limited and possibly no changes to market access as a result of the free trade deal that we negotiate".
He dismissed suggestions that Theresa May was in a weak position, saying the PM had "resilience and determination" to get things right.He dismissed suggestions that Theresa May was in a weak position, saying the PM had "resilience and determination" to get things right.
Mr Hammond tweeted after his remarks on Thursday that he had been "clear" that the UK would leave both the single market and customs union after Brexit. And Mr Rees-Mogg told the BBC: "There's no question of us removing support for Mrs May. We fully support Mrs May and the proposals she has made for Brexit."