Downing Street is “reasonably confident” it can strike a trade deal with the US despite concerns over the decision to grant Huawei access to the UK’s 5G mobile network, the foreign secretary has said.
Dominic Raab insisted Boris Johnson’s government had taken seriously Washington’s protests over the Chinese firm’s role, which the American government regards as a security risk, but did not envisage the dispute being a fatal stumbling block to a trade agreement.
US president Donald Trump was reported to have been “apoplectic” and slammed down the phone on Mr Johnson when told of his decision last week. His government had lobbied Britain hard as part a global bid to ensure Huawei – which has close links to Beijing’s Communist regime – is excluded from the West’s next-generation telecoms systems.
Mike Pence, the US vice-president, hinted on Friday the UK’s decision could prove an obstacle to reaching a trade deal.
But Mr Raab, speaking on a trip to Singapore on Monday, said: “We listened and take the concerns of our American friends very seriously.”
He added: “We are reasonably confident that we can do a free trade agreement [with the US] in that first wave of post-Brexit trade deals.”
Downing Street has promised Huawei will only be able to bid for “non-core” elements of the project, such as antennae and base stations, while British agencies have assured the prime minister that any security risk can be managed.
But senior Conservatives have turned on him over the sensitive project, with former Tory leader Iain Duncan Smith warning only “trusted” companies should be involved.
Mr Johnson has insisted excluding Huawei altogether would have delayed 5G and cost consumers more.
“We have had a good conversation about Huawei and the one thing we all recognise is there has been market failure in terms of high-trust vendors being able to provide telecoms infrastructure,” Mr Raab said.
He revealed Britain was in talks with America, Australia, Canada, and others on future technological innovations that could challenge Huawei’s dominance in the field.
“For 5G, the sooner we can build up our pool of high-trust vendors the less reliant we will be on high-risk vendors,” the foreign secretary added.
Mr Raab, who is visiting Asia to seek free trade deals after Brexit, said he expected Singapore to be in the first wave agreements reached.
He will travel to Malaysia on Tuesday, wrapping up a tour that has also included Australia and Japan.
