Trade Secretary Liam Fox has cast doubt on whether the UK will have a “gold standard” free trade deal with China – even after it leaves the European Union and is free to sign one.
The Cabinet minister said commerce between the two countries could instead be improved through other measures to boost market access.
But his comments fly in the face of Brexit rhetoric, which underlined Britain’s prospects of securing new free trade agreements (FTAs) with other nations as a major reason for leaving the EU.
Dr Fox indicated that enacting any trade deal or moving to slash tariffs on Chinese products would be “some time away” at the end of the Brexit transition period.
Asked about a China/UK FTA, Dr Fox told Sky News: “We are looking to see where we can get improvements with that, whether it’s done with a gold standard FTA, whether it's done by a series of measures for market access and mutual recognition, or equivalence the whole range of tools in the box.
“That’s why this is my second visit to China in a month, to try to maximise the opportunity.”
During the referendum, Leave backers pointed to the prospect of new FTAs with the US, China and other countries as a key motivation for leaving the EU and its customs union, which prevents member states signing individual trade deals.
The Government has set up more than ten working groups with other countries to start laying ground for future FTAs - and now a trade review with China - which could later feed into FTA negotiations.
But Dr Fox’s words leave a question over whether the Government thinks a full trade deal with China will really happen after Brexit.
Dr Fox also confirmed that many measures to boost trade and open up foreign markets, short of an FTA, can be undertaken now – while the UK remains inside the EU’s customs union.
He said: “Self evidently we can do it in a customs union because we can do it now, while we are still in the EU.
“As I’ve always said we have to increase Britain’s trade, increase the proportion of our national income to create national dividends to fund public services.”
The minister accompanied Theresa May on her three-day tour of China this week, which has seen the nations sign business deals worth some £9bn.
But asked how he saw future post-Brexit trade taking shape, Dr Fox said: “We haven’t got to Brexit yet of course, and that may be some time away if we’ve got an implementation period, but what we’re doing is to ensure that when we have economic freedoms we can take advantage of them.
“We’ve set up a trade and investment review with China to take a look at the options we have in terms of our trading relationship and agreements once we have left the EU.
“But in this short term that doesn’t mean we cant increase our trade.”
The trip comes against a backdrop of party political difficulties for Mrs May back in the UK, with renewed speculation over her leadership and questions over whether she has the right ideas to win the next election.
Dr Fox told ITV News: “Well, I will give full support to the Prime Minister as long as she wants to lead my party.
“I think she is doing an excellent job and I do wish more of my colleagues could see the sort of leadership and commitment and positive agenda that’s been projected for Britain here in China.”
