Davis admits UK won’t be able to sign trade deals during transition period
Britain will not be able to enact post-brexit free trade deals with countries like the United States until proposed temporary customs arrangements with the European Union end, David Davis has admitted.
The Brexit Secretary published plans for a time-limited transition period to ensure businesses on both sides of the Channel only have to adapt once to rule changes on the import and export of goods.
The “future partnership paper” also contained two potential options for a longterm deal after the interim period.
The more ambitious option would see Britain “mirroring” Brussels tariffs for goods that will eventually enter the EU to avoid the need for a UK-EU customs border. Alternatively, a “streamlined” approach 0 Chancellor Phillip Hammond wants a soft Brexit would see the UK negotiate agreements with the EU to reduce trade barriers and harness technology to avoid long queues at ports.
Before any new customs deal is negotiated and implemented, Britain will seek to avoid a “cliff-edge” for businesses by putting in place temporary arrangements that are broadly similar to the EU’S customs union. The adoption of this approach is likely to be seen as a victory for Chancellor Philip Hammond, who favours a “softer” pro-business Brexit.
Mr Davis admitted that, during this period, which he said would last “something like two years”, the UK would not be able to do business under new free trade agreements with countries such as the US and Australia.
Asked whether the UK could enact new free trade deals during the temporary period, Mr Davis told BBC Radio 4’s Today programme: “No, negotiate and sign. You couldn’t have an arrangement whereby we have unfettered access to the European market but also the right to bring in raw materials from outside.
“Because you’d have what they call arbitrage – someone would bring in cheap goods and then sell them on. But we should be able to have an arrangement by which we can do the negotiation, sign it off, but not enter [it] into effect.”