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Trump Team preparing US / UK trade deal
James Forsyth
James Forsyth
14 January 2017
The Spectator
Foreign Secretary Boris Johnson returned from the US this week boasting that the UK was now ‘first in line’ for a trade deal with the US. He said that the Trump team and the new Congress ‘want to do it fast’.
But as I
write in The Sun this morning, the situation is even more advanced than this. I understand that the Trump team is already working on the outlines of a US / UK trade deal. Interestingly, they want the deal to be pencilled in before the UK leaves the EU, though the UK could not formally sign it until it has left the bloc.
The US’s keenness for a trade deal with the UK strengthens the case for the UK leaving the customs union. Inside the customs union, Britain is not able to do its own comprehensive trade deals. Opinion in government is now leaning towards leaving the customs union and instead seeking a customs arrangement with the EU to try and keep trade as smooth as possible.
Combine the Trump news with The Guardian’s splash this morning that Michel Barnier, the EU’s Brexit negotiator, wants a ‘special’ deal to guarantee EU access to the City of London’s financial markets post-Brexit and May has a strong backdrop for her big Brexit speech on Tuesday.
Trump Team preparing US / UK trade deal | Coffee House
New Zealand - "Britain Down Under" - which suffered economically as a result of Britain joining what is now the EU in 1973, is lining up a free trade deal with the Mother Country....
Kiwi PM praises Theresa May's 'clarity and determination' over Brexit as leaders prepare 'high quality' UK-New Zealand free trade deal
Bill English says New Zealand stands ready to strike a 'comprehensive' free trade deal with Britain
May says she wants 'bold' new trade deal with New Zealand when we leave EU
Says she wants 'early discussions' on the terms as she meets English in London
By
Matt Dathan, Political Correspondent For Mailonline
13 January 2017
Theresa May's Brexit plans were given a boost today as New Zealand Prime Minister Bill English praised her 'clarity and determination'.
The pair signalled preparations are already underway for a 'high quality' free trade deal between the two nations, ready to be signed when Britain officially cuts ties with Brussels in a couple of years.
Mr English was in London today for key talks with Mrs May and the pair also agreed to strengthen the 'five eyes' security alliance that ensures the two countries share intelligence along with the US, Canada and Australia.
Mrs May said they agreed on the potential for a 'bold' new trading relationship after Brexit and promised 'early discussions' on the terms.
Brexit supporters hailed the 'excellent news' from New Zealand today but Lib Dem leader Tim Farron poured scorn on the talks and said a free trade deal with the Kiwis would go nowhere near replicating loss of trade with the EU.
Theresa May's Brexit plans were given a boost today as New Zealand Prime Minister Bill English praised her 'clarity and determination'
Mr English said his country stands ready to strike a 'comprehensive' free trade deal with Britain.
She will send her International Trade Secretary Liam Fox to New Zealand in the coming months to begin bilateral talks.
But official negotiations over trade deals with non-EU countries cannot officially begin until Britain has formally left the EU.
That process will take up to two years, although Britain's ability to strike new trade deals could be inhibited if we stay in Europe's single market or customs union because rules state that the EU must negotiate trade deals as a whole trading bloc.
It is understand that New Zealand, a country of 4.5million, is seen by No 10 as the best prospect of an early trade deal once Britain completes its divorce from the EU.
Mrs May has faced criticism for failing to publicly set out the approach she will take in the exit negotiations.
But her counterpart praised the way the New Zealand government had been kept informed about developments.
Mrs May said they agreed on the potential for a 'bold' new trading relationship after Brexit and promised 'early discussions' on the terms
Mrs May has faced criticism for failing to publicly set out the approach she will take in the exit negotiations. But Mr English, left praised the way the New Zealand government had been kept informed about developments
Speaking at a press conference after a working lunch in Downing Street today, Mr English said: 'We are ready to negotiate a high quality trade agreement with the UK when it is in a position to do so.'
He added: 'I must say I'm impressed by the size and complexity of the task and the clarity and determination the Prime Minister is bringing to it.
'I reiterated New Zealand's commitment to working constructively with the UK and the EU through this process.
'We want to acknowledge the way in which the UK Government has communicated with countries such as ours over the last six months or so in order to create as much certainty as is possible in the environment of negotiating the exit.'
Mrs May said: 'We have had an excellent first meeting today. We may be many miles apart in our geography but our countries are side-by-side in our values.'
Theresa May will send her International Trade Secretary Liam Fox, pictured, to New Zealand in the coming months to begin bilateral talks
She added: 'In the longer term, we agree on the potential for a bold new UK-New Zealand Free Trade Agreement, and I look forward to starting early discussions on this in due course.'
Stressing the extent of the free trade deal he wants to strike with Britain, Mr English said: 'We are here to work with both the UK and the EU and we are ready to negotiate a high-quality free trade agreement with the UK when it is in a position to do so.
'We already have a strong and diversified trading relationship with the UK and a free trade agreement will build on that.
'We will seek a comprehensive and high-quality trade agreement because we know the benefits that free trade delivers - it helps create jobs, to raise incomes and delivers prosperity and opportunity at the level that New Zealanders and Britons deserve.'
He said the two countries already have a 'strong and growing relationship worth more than £3billion a year.
Britain is also the second largest foreign investor in New Zealand and its fifth largest bilateral trading partner, she said.
Asked how soon a deal could be reached, the New Zealand premier said: 'With respect to the trade agreement, we would hope that we could negotiate as soon as possible after the exit is completed.
'If the UK want to demonstrate that they can negotiate a high-quality trade agreement, then New Zealand is the ideal partner for that.'
Mr English, pictured alongside Theresa May in Downing Street today, said his country stands ready to strike a 'comprehensive' free trade deal with Britain
Mrs May added: 'New Zealand is an important country for us precisely because of the historic ties that we share, the shared values that we have, the shared belief in free trade that we have.
'I think it's natural that we would look to a partner like New Zealand. Of course we will be negotiating a free trade agreement but we will be looking to get an agreement that is going to work for both sides.'
But Lib Dem leader Mr Farron said: 'While the UK and New Zealand share history and values which make them natural allies, it is important to put this all in context.
'May is heralding a free trade deal with a country of around 4.5 million people, whilst pulling up the drawbridge on a market of over 500 million.
'All the while she is adding the final touches to a speech that could see us careering out of the Single Market and force us towards a Hard Brexit.
'The government talk about Adam Smith, free trade and openness and then blindly yank us out of our biggest market, taking a protectionist stance. It is madness.
'This shows how warped the thinking is at the heart of this divisive Tory Brexit government.'