Britain has begun trade negotiations with China, Philip Hammond announced last night.
The Chancellor said he had started discussions with the powerhouse nation about an ambitious free trade deal, which could see Chinese firms having greater access to the UK economy.
He added that, in the wake of the Brexit referendum vote, it was time to explore ‘new opportunities’ across the world – including with China, one of the UK’s biggest inward investors.
Mr Hammond said there were also ‘exciting opportunities’ opening up with other major economic powers such as Australia and India.
The Chancellor’s positive language about the possibility of trade deals across the world contrasts sharply with the Remain campaign’s warnings before last month’s referendum on Britain’s EU membership.
As part of the EU, Britain wasn't able to independently make trade deals with non-EU countries, but is now free to do so after voting to leave the union.
Britain IS open for business: Chinese start trade deal talks so firms can have greater access to UK economy
Chancellor Philip Hammond announced that the trade talks have started
Ambitious free deal could see Chinese firms having greater access to UK
Mr Hammond said it was time to explore new opportunities following Brexit
China could also reduce barriers to Britain's service industries if there is a deal
By Daniel Martin Chief Political Correspondent For The Daily Mail
25 July 2016
Chancellor Philip Hammond said he had started discussions with China about an ambitious free trade deal, which could see Chinese firms having greater access to the UK economy
Britain has begun trade negotiations with China, Philip Hammond announced last night.
The Chancellor said he had started discussions with the powerhouse nation about an ambitious free trade deal, which could see Chinese firms having greater access to the UK economy.
He added that, in the wake of the Brexit referendum vote, it was time to explore ‘new opportunities’ across the world – including with China, one of the UK’s biggest inward investors.
Mr Hammond said there were also ‘exciting opportunities’ opening up with other major economic powers such as Australia and India.
The Chancellor’s positive language about the possibility of trade deals across the world contrasts sharply with the Remain campaign’s warnings before last month’s referendum on Britain’s EU membership.
Leave campaigners will seize upon news of the discussions to argue that Britain faces a bright economic future outside the Brussels club.
Chinese state media reported earlier this month that its ministry of commerce wants to do a free trade deal with Britain.
It will be the first time the UK has embarked on such a major project with the second-largest economy in the world.
Officials are believed to be looking at New Zealand’s bilateral trade deal with China – which took more than three years to negotiate and came into force in 2008 – as well as the possibility of Britain joining an existing agreement.
However, any potential deal will raise concerns about cheap manufactured goods entering the UK more easily. The recent crisis in the British steel industry was largely blamed on cheap Chinese steel being ‘dumped’ into the economy, lowering prices.
In return for greater access to the UK for its products and investment, China could reduce barriers to Britain’s service industries such as banking and insurance, as well as cutting tariffs on UK goods.
The country could become a lucrative source of export income for Britain after leaving the EU.
Mr Hammond announced the trade talks from the Chinese city of Chengdu, where he met other G20 finance ministers.
‘The mood music that I have heard here is very much that this will mean more opportunity for countries like China that are outside the European Union to do business with Britain,’ the Chancellor told the BBC.
‘And as Britain leaves the European Union and is not bound by the rules of the European Union, perhaps it will be easier to do deals with Britain in the future.’
Mr Hammond added: ‘We already have a strategic partnership with China.
‘We have hugely increased our trade with China, investment both by British companies into China and by Chinese entities into the UK.
Mr Hammond meets with Chinese Vice-Premier Ma Kai. The chancellor said that in the wake of the Brexit referendum vote, it was time to explore ‘new opportunities’ across the world – including with China, one of the UK’s biggest inward investors
‘That’s about as far as we can go while we are members of the European Union.
‘But once we are out of the European Union then I have no doubt on both sides we will want to cement that relationship into a firmer structure in a bilateral way that’s appropriate. That’s something we will have to explore in the future.’
Mr Hammond said it would be ‘certainly appropriate’ to start discussing a new deal over the next ‘couple of years’.
He added: ‘Our options are very wide at the moment.
‘We know we can’t legally enter into new trade agreements until the point where we exit the EU, which could be two, two-and-a-half years down the line.
‘We have time to look at the options, to negotiate agreements, to discuss the terms on which we could enter existing agreements.
‘At the same time, there are very exciting opportunities opening up with China, with Australia, with India and with many other countries.’
The Chancellor said he had started discussions with the powerhouse nation about an ambitious free trade deal, which could see Chinese firms having greater access to the UK economy.
He added that, in the wake of the Brexit referendum vote, it was time to explore ‘new opportunities’ across the world – including with China, one of the UK’s biggest inward investors.
Mr Hammond said there were also ‘exciting opportunities’ opening up with other major economic powers such as Australia and India.
The Chancellor’s positive language about the possibility of trade deals across the world contrasts sharply with the Remain campaign’s warnings before last month’s referendum on Britain’s EU membership.
As part of the EU, Britain wasn't able to independently make trade deals with non-EU countries, but is now free to do so after voting to leave the union.
Britain IS open for business: Chinese start trade deal talks so firms can have greater access to UK economy
Chancellor Philip Hammond announced that the trade talks have started
Ambitious free deal could see Chinese firms having greater access to UK
Mr Hammond said it was time to explore new opportunities following Brexit
China could also reduce barriers to Britain's service industries if there is a deal
By Daniel Martin Chief Political Correspondent For The Daily Mail
25 July 2016
Chancellor Philip Hammond said he had started discussions with China about an ambitious free trade deal, which could see Chinese firms having greater access to the UK economy
Britain has begun trade negotiations with China, Philip Hammond announced last night.
The Chancellor said he had started discussions with the powerhouse nation about an ambitious free trade deal, which could see Chinese firms having greater access to the UK economy.
He added that, in the wake of the Brexit referendum vote, it was time to explore ‘new opportunities’ across the world – including with China, one of the UK’s biggest inward investors.
Mr Hammond said there were also ‘exciting opportunities’ opening up with other major economic powers such as Australia and India.
The Chancellor’s positive language about the possibility of trade deals across the world contrasts sharply with the Remain campaign’s warnings before last month’s referendum on Britain’s EU membership.
Leave campaigners will seize upon news of the discussions to argue that Britain faces a bright economic future outside the Brussels club.
Chinese state media reported earlier this month that its ministry of commerce wants to do a free trade deal with Britain.
It will be the first time the UK has embarked on such a major project with the second-largest economy in the world.
Officials are believed to be looking at New Zealand’s bilateral trade deal with China – which took more than three years to negotiate and came into force in 2008 – as well as the possibility of Britain joining an existing agreement.
However, any potential deal will raise concerns about cheap manufactured goods entering the UK more easily. The recent crisis in the British steel industry was largely blamed on cheap Chinese steel being ‘dumped’ into the economy, lowering prices.
In return for greater access to the UK for its products and investment, China could reduce barriers to Britain’s service industries such as banking and insurance, as well as cutting tariffs on UK goods.
The country could become a lucrative source of export income for Britain after leaving the EU.
Mr Hammond announced the trade talks from the Chinese city of Chengdu, where he met other G20 finance ministers.
‘The mood music that I have heard here is very much that this will mean more opportunity for countries like China that are outside the European Union to do business with Britain,’ the Chancellor told the BBC.
‘And as Britain leaves the European Union and is not bound by the rules of the European Union, perhaps it will be easier to do deals with Britain in the future.’
Mr Hammond added: ‘We already have a strategic partnership with China.
‘We have hugely increased our trade with China, investment both by British companies into China and by Chinese entities into the UK.
Mr Hammond meets with Chinese Vice-Premier Ma Kai. The chancellor said that in the wake of the Brexit referendum vote, it was time to explore ‘new opportunities’ across the world – including with China, one of the UK’s biggest inward investors
‘That’s about as far as we can go while we are members of the European Union.
‘But once we are out of the European Union then I have no doubt on both sides we will want to cement that relationship into a firmer structure in a bilateral way that’s appropriate. That’s something we will have to explore in the future.’
Mr Hammond said it would be ‘certainly appropriate’ to start discussing a new deal over the next ‘couple of years’.
He added: ‘Our options are very wide at the moment.
‘We know we can’t legally enter into new trade agreements until the point where we exit the EU, which could be two, two-and-a-half years down the line.
‘We have time to look at the options, to negotiate agreements, to discuss the terms on which we could enter existing agreements.
‘At the same time, there are very exciting opportunities opening up with China, with Australia, with India and with many other countries.’
