In the US for talks, Liam Fox has given an interview to the Wall Street Journal, reported in The Guardian (HERE). In it he says we "would probably seek to enter a free-trade agreement with the EU rather than a closer “customs union” that could restrict its ability to negotiate lower tariffs with other trading partners".
Since we cannot negotiate a FTA as a member of the EU (see HERE), this means we will have to exit, become a third country in EU parlance and operate under WTO rules for a number of years before a trade deal can be negotiated. There seems no question of the UK entering the EEA even for a limited period while we work out what our trade relationship with the EU is.
And ITV are reporting (HERE) the USA have confirmed to Mr Fox that they won't enter into talks with us on a US-UK free trade deal until our deal with the EU is clear or clearer. None of this seems quite a easy as John Redwood claims (HERE).
UPDATE 27th July
We now learn Liam Fox has been "slapped down" by Downing Street (HERE) for suggesting a FTA on the basis that having no customs union would mean goods shipped across the Irish border would have to be checked and this means a "hard" border - something Theresa May has already said she doesn't want. It really does look like they're making it up as they go along.
We now learn Liam Fox has been "slapped down" by Downing Street (HERE) for suggesting a FTA on the basis that having no customs union would mean goods shipped across the Irish border would have to be checked and this means a "hard" border - something Theresa May has already said she doesn't want. It really does look like they're making it up as they go along.
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