MNI: UK Would Not Accept A Bad US Trade Deal Says Fox

- Intl Trade Sec Says UK Must Not Offer To Pay Brexit Bill Before Trade Deal

By Kieran Williams

     LONDON (MNI) - The UK would not do a deal with the US that was not to the

UK's advantage said Secretary of State for International Trade Liam Fox at an

International Trade Committee. 

     Fox said he was "very keen on getting a deal," but was "not afraid" of a no

deal scenario that would see the UK rely on World Trade Organisation (WTO)

rules.

     He emphasised that the preparations of the Trade Department had to

encompass a wide variety of scenarios from a 'no deal' Brexit to the best

possible scenario. He noted that while it was prudent to enact preparations for

a 'no deal' he thinks a mutually beneficial deal is more likely.

     This optimism was tempered, however, saying that it is "regrettable that

some people want to punish Britain" and adding that "this is the language of a

gang not of a club."

     Fox also appeared to frame the financial settlement as a negotiating chip

saying that the UK "mustn't offer to pay the Brexit bill before a trade deal is

clear."

     The UK, however, agreed to sequencing talks so that negotiations on

payments to the EU take place before trade talks and Fox's comments further

muddy the water after testimony from Secretary of State for Exiting the EU David

Davis Tuesday.

     Davis said that the withdrawal agreement financial settlement terms would

probably be more beneficial to the EU, while the future trade deal would be

important to both sides.

     The Committee likened the financial settlement to a negotiating chip, a

dial that the UK could turn up and down to affect the outcome, but Davis

rejected this metaphor. 

     Earlier in his testimony, however, Davis expressed a similar sentiment when

he said that UK viewed the financial settlement as a political obligation as

opposed to a legal obligation.

     The hearing also highlighted some differences in opinions between members

of the cabinet. Fox said today that he saw no issue with a UK-US trade deal that

meant people in the UK consumed chlorinated chicken. 

     "I have no objection to the British public eating what they like as long as

they know it's safe" Fox said.

     However Michael Gove, the Secretary of State for Environment, Food and

Rural Affairs, has repeatedly said he would oppose any such trade deal that

included the process that has been banned by the EU.

     Fox said that this was a small issue in a huge tapestry that had to be

negotiated, and added that "it's inconceivable we would have a less ethical

trade policy after we leave the EU." 

     Nonetheless, this division highlights the lack of clarity the UK holds on

its final Brexit position and future deals.

--MNI London Bureau; +44 203 865 3809; email: kieran.williams@marketnews.com

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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