0:00:21 > 0:00:30Thanks very much. Thank you for the introduction and
0:00:30 > 0:00:33thank you to Bloomberg for hosting us in such wonderful surroundings.
0:00:33 > 0:00:38It's a pleasure to be here today to talk about Britain's trading future.
0:00:38 > 0:00:42The historic decision by the British people to leave the EU has presented
0:00:42 > 0:00:46this country with a number of choices about its future global
0:00:46 > 0:00:50direction. It has generated a great deal of soul-searching and caused a
0:00:50 > 0:00:55number of important questions to be aired. Some of these relate
0:00:55 > 0:00:57specifically to the referendum decision itself. Others are
0:00:57 > 0:01:01questions which needed to be addressed anyway, but have been
0:01:01 > 0:01:07brought into sharper focus by that decision. Where do we see our place
0:01:07 > 0:01:12in the world? What sort of economy and what sort of country do we want
0:01:12 > 0:01:18to be? What should our influence be in global affairs and global trade?
0:01:18 > 0:01:23And how will we generate the income we will need to ensure a prosperous
0:01:23 > 0:01:28and secure future for the generations that come after us?
0:01:28 > 0:01:32Since the referendum vote and the creation of the Department for
0:01:32 > 0:01:38International Trade, my team and I have undertaken 150 overseas visits
0:01:38 > 0:01:43to all parts of the globe and to market is large and small. From
0:01:43 > 0:01:49across the world, the key is to deepen trade and investment ties
0:01:49 > 0:01:54with this country and once again he has championed the cause for free
0:01:54 > 0:01:59trade, it is palpable. Why should that surprise us? The UK is one of
0:01:59 > 0:02:04the largest and most successful economies. We are at record levels
0:02:04 > 0:02:08of employment. Our success is underpinned by a legal system whose
0:02:08 > 0:02:13reputation is second to none. We have a skilled workforce and a low
0:02:13 > 0:02:18tax and well regulated economy. We are home to some of the world's
0:02:18 > 0:02:20finest universities, our research and development capabilities are
0:02:20 > 0:02:27cutting age under financial institutions world beating. We are
0:02:27 > 0:02:30in any time zone that can trade with Asia in the morning of the United
0:02:30 > 0:02:34States in the afternoon, and we speak English, the global language
0:02:34 > 0:02:40of business. In 2017, we saw the highest level of foreign investment
0:02:40 > 0:02:45projects in the UK in our history. As the world's leading companies
0:02:45 > 0:02:49offered a strong vote of confidence in the future of our economy. This
0:02:49 > 0:02:57was matched by an increase of 11% in the value of our exports. In 2017,
0:02:57 > 0:03:02600 and £17 billion of UK goods and services were sold overseas,
0:03:02 > 0:03:08narrowing our trade deficit by just under £7 billion. The second half of
0:03:08 > 0:03:152017 also saw strong growth in manufacturing output. Partly as a
0:03:15 > 0:03:18result of this improved export performance, order books were
0:03:18 > 0:03:22British manufacturers remained well above their long-term average, and
0:03:22 > 0:03:26this is testament to the hard work and dedication from British
0:03:26 > 0:03:35businesses, large and small, up and down the UK.
0:03:35 > 0:03:41And tag and innovation. In the last year we have had more than 15,000
0:03:41 > 0:03:47tech start-ups in country, and more venture capital in the attack was
0:03:47 > 0:03:50invested in London last year that ended the whole of Germany, France,
0:03:50 > 0:03:56Spain and Ireland put together. This all adds up to an extremely positive
0:03:56 > 0:04:02picture, one that should give us confidence in dealing with the
0:04:02 > 0:04:07global opportunities that we might seize. This conference is key to be
0:04:07 > 0:04:12able to take advantage of it dramatically shifting picture around
0:04:12 > 0:04:15the world, the previous assumptions are being challenged, Robert and
0:04:15 > 0:04:21France is moving, and new markets are blossoming. I often beat the IMF
0:04:21 > 0:04:29that in the next ten to 15 years, 90%, 90%, of global economic growth
0:04:29 > 0:04:34will imagine it from outside the European Union. This is not in any
0:04:34 > 0:04:39way to diminish the importance of Europe as an economic market and
0:04:39 > 0:04:44partner, but merely to point out the scale of the shift in global
0:04:44 > 0:04:48economic activity so that we add orientated towards the most income
0:04:48 > 0:04:53generating parts of the global economy. This thriving economies of
0:04:53 > 0:04:59south and east Asia, and increasing the Africa and will become even more
0:04:59 > 0:05:02important as their new-found prosperity drives demand for the
0:05:02 > 0:05:08goods and services of the developed countries prepared to enter right
0:05:08 > 0:05:15with their markets. By 2020, China's middle-class is expected to number
0:05:15 > 0:05:25600 million, and by 2050, Africa, on its own, will represent 54% of the
0:05:25 > 0:05:31world population increase. By 2030, China will have over 220 cities with
0:05:31 > 0:05:35the population greater than 1 million people. The whole of Europe
0:05:35 > 0:05:43will have 35. And on top of the fast Asia-Pacific growth, it is predicted
0:05:43 > 0:05:50that there will be 1.1 billion middle-class Africans died 2060.
0:05:50 > 0:05:54Such is just not just in global demographics, but in the rise of the
0:05:54 > 0:05:58collected wealth of vamping countries will develop radical than
0:05:58 > 0:06:05all of opportunities of the future will be, and we are we must be too.
0:06:05 > 0:06:09Markets are already out there for the best that Britain has to offer.
0:06:09 > 0:06:14I see it on every overseas trade visit their time it. From the export
0:06:14 > 0:06:20goods, from top end fashion, to high-quality cars, discuss risky, to
0:06:20 > 0:06:25high-end manufacturing, the demand is growing. For professional
0:06:25 > 0:06:29services too, from accountancy to law to education or life sciences
0:06:29 > 0:06:32financial services, these newly emergent middle classes bonded more
0:06:32 > 0:06:37of these deals where we are already world-class. Is here that we will
0:06:37 > 0:06:44find the United Kingdom's unique comparative advantage. We must as a
0:06:44 > 0:06:49contraceptive site at this future. We have to take a long-term view,
0:06:49 > 0:06:56and our future must be global, because the pattern of our trade is
0:06:56 > 0:07:02changing. 57% of Britain's's exports and noted outside the EU, compared
0:07:02 > 0:07:09with only 46% in 2006. What is more, while our EU export are still
0:07:09 > 0:07:12dominated by goods, our non-EU exporter evenly split between goods
0:07:12 > 0:07:20and services. An approach should not be premised on simply identifying
0:07:20 > 0:07:25how much of our current relationship we want to keep, but what we need to
0:07:25 > 0:07:31prosper in a rapidly changing global environment. We cannot let the
0:07:31 > 0:07:35practices and the patterns of the past constraints the opportunities
0:07:35 > 0:07:42of the future. We require an economic outlook that allows us to
0:07:42 > 0:07:45take advantage of this substantial opportunities that Europe will
0:07:45 > 0:07:50continue to break, but without limiting our ability to add that to
0:07:50 > 0:07:55a changing and growing world beyond to the European continent. The UK is
0:07:55 > 0:07:58perfectly placed to partner with the economic powerhouses of the future,
0:07:58 > 0:08:03and they in turn out eager for the mutual prosperity that such a
0:08:03 > 0:08:10partnership would bring. To do this, we need the ability to exercise a
0:08:10 > 0:08:15fully independent trade policy. We have to maximise our overall trading
0:08:15 > 0:08:23opportunities for the UK to secure the prosperity of our people. Now,
0:08:23 > 0:08:28in the first speech I gave as Secretary of State for International
0:08:28 > 0:08:30Development, I set out Britain passed by a proud tradition of
0:08:30 > 0:08:36defending both the concept and practice are featured. Type a time
0:08:36 > 0:08:42again studies have found evidence of a shock positive correlation between
0:08:42 > 0:08:47economic openness and growth. During the 1990s, per capita income grew
0:08:47 > 0:08:52three tenths faster in developing countries that Lord trade barriers
0:08:52 > 0:08:56that in those that did it. That effect is not confined to developing
0:08:56 > 0:09:04countries either. The growth project found that a 10% increase in trade
0:09:04 > 0:09:09exposure was associated with a four percent rise in income per capita.
0:09:09 > 0:09:19In other words, free trade works. Globalisation has been of huge and
0:09:19 > 0:09:22sustainable benefit to the economy, including in trade, specialisation
0:09:22 > 0:09:27and innovation. It was competition, economies of scale and global value
0:09:27 > 0:09:32chains have all contributed to a productivity revolution, boosting
0:09:32 > 0:09:35the output of businesses across the globe, and when free-trade
0:09:35 > 0:09:40agreements are reached, the positive effect on businesses, edited and
0:09:40 > 0:09:47economies can be remarkable. The EU career free-trade agreement, which
0:09:47 > 0:09:52came into effect in July 2011 is just one example. In the year before
0:09:52 > 0:10:01the deal was agreed, the UK beer and cider industry sold almost a thing
0:10:01 > 0:10:07to Korea. Exports were added to what you post. By 2070, however, sales to
0:10:07 > 0:10:18South Korea have exploded 2/93 million pounds. -- by 2017. Feature
0:10:18 > 0:10:21can be particularly imported to developing countries as they get
0:10:21 > 0:10:23access to cutting edge technologies, and millions more consumers of their
0:10:23 > 0:10:29goods. As the world's emerging and developing economies have
0:10:29 > 0:10:33liberalised trade practices, prosperity has big, big industry,
0:10:33 > 0:10:40jobs and wealth when there was once only deprivation. According to the
0:10:40 > 0:10:46World Bank, the three decade between 1981 and 2010 witnesses singled
0:10:46 > 0:10:51great is the truth in material deprivation in human history. 1
0:10:51 > 0:10:58billion people were taken out of abject poverty in a just one
0:10:58 > 0:11:01generation. That is why it is morally applicable to reject free
0:11:01 > 0:11:08and open trade. Added is that those overseas markets that benefit. We do
0:11:08 > 0:11:14so here at home as well. Although it might not always be noticed, the
0:11:14 > 0:11:19wider benefits of a liberal trade policy are shared by consumers and
0:11:19 > 0:11:23households across the country. By providing a wider choice of goods at
0:11:23 > 0:11:26a lower price. It provides a supermarket with the ability to sell
0:11:26 > 0:11:32us back a full range of foods all year round, and enables electronic
0:11:32 > 0:11:35retailers to sell us increasingly sophisticated technologies at lower
0:11:35 > 0:11:39prices, from TVs to computers to mobile phones. And all this helps
0:11:39 > 0:11:47income go further. For example, and a decade to 2006, the real price of
0:11:47 > 0:11:53clothing fell by 38%, a real help for families with children. But more
0:11:53 > 0:11:58than lower prices, open markets allow consumers the ability to
0:11:58 > 0:12:02choose where the source goods, to ensure sustainability, and the
0:12:02 > 0:12:06propagation of our wider values, including an environmental agenda
0:12:06 > 0:12:11and containing the high standards in the food that we can buy. As with
0:12:11 > 0:12:16many freedoms, free and open trade can be taken for granted, but the
0:12:16 > 0:12:20reality is that these freedoms and the benefits that the instilled
0:12:20 > 0:12:25habit hard one, and have to continually be defended from decided
0:12:25 > 0:12:29call of protectionism and the anti-trade lobby. That is why I
0:12:29 > 0:12:37voted for a post-Brexit Britain is one of leadership. The UK is already
0:12:37 > 0:12:40a committed member of the World Trade Organisation, a body which is
0:12:40 > 0:12:44the whole of the International rules -based trading system that we fully
0:12:44 > 0:12:51support. Currently, a direction and action within the WTO is determined
0:12:51 > 0:12:58by our membership of the EU. But soon, the UK will begin the full
0:12:58 > 0:13:01authority of independent membership. They will establish a role in
0:13:01 > 0:13:04training schedules. We are taking the necessary steps that are leaving
0:13:04 > 0:13:08the year we will exceed to the agreement on Government procurement,
0:13:08 > 0:13:13and we will begin to exercise a independent voice. The UK stands
0:13:13 > 0:13:17ready to offer a clear leadership, to be a star stiff edge of trading
0:13:17 > 0:13:23rights and freedoms, not only at the WTO but at other international
0:13:23 > 0:13:28bodies too. Moreover, we can help forge the way of the liberalisation
0:13:28 > 0:13:32of those areas of global trade by the WTO and other bodies have yet to
0:13:32 > 0:13:42extend their reach, services, the digital economy. The knowledge
0:13:42 > 0:13:51economy is growing. Digital trade is inherently transnational, and
0:13:51 > 0:13:59e-commerce offers previously unknown opportunities for SMEs and
0:13:59 > 0:14:03individuals, particularly women, to take part in the globalised economy.
0:14:03 > 0:14:07In many areas of this important and Jeddah, the EU has been unable to
0:14:07 > 0:14:11keep pace. There is a real opportunity for the UK to become a
0:14:11 > 0:14:18global leader in digital trade. If we are to lose, then we must ask
0:14:18 > 0:14:24yourself what leadership looks like. -- every are too late. But of the
0:14:24 > 0:14:30value of current trading practices at the rigidity. There is a tendency
0:14:30 > 0:14:33among some patients to cling to the Nordic trading mechanisms, more
0:14:33 > 0:14:40suited to the structures of the past that the digital age of the future.
0:14:40 > 0:14:45Flexibility and agility, then, are the key to any future trade policy.
0:14:45 > 0:14:49The ability to react quickly to new development, to explore new
0:14:49 > 0:14:52opportunities, and to Doctor floating industries will be the key
0:14:52 > 0:14:56to growth and prosperity in the coming years. That's why my
0:14:56 > 0:14:59department is pursuing a more flexible approach to our country's
0:14:59 > 0:15:07trading future. There is a growing awareness that is global gold plated
0:15:07 > 0:15:11free-trade agreement may not be the only solution in a fast changing
0:15:11 > 0:15:17global economy. Fortunately, there is a global trade tool box from
0:15:17 > 0:15:20which we can choose the most appropriate mechanisms for
0:15:20 > 0:15:26liberalising trade. The trade from the members of multilateral
0:15:26 > 0:15:30agreements to mutual recognition agreements, and this sort of actor
0:15:30 > 0:15:33-based equivalents approach recently advanced by the Government of the
0:15:33 > 0:15:40Bank of England. We look consider multi-country alliances to be
0:15:40 > 0:15:43like-minded right down to bilateral arrangements, using all the
0:15:43 > 0:15:48advantage available to us back from our diplomatic network. All of these
0:15:48 > 0:15:54options are available, but only two countries with independent trade
0:15:54 > 0:16:10policies. In the past 20 months of DITs excesses, this work has begun
0:16:10 > 0:16:15in earnest. We have laid the groundwork for future trade
0:16:15 > 0:16:19agreements, but will also work to identify those nontariff barriers to
0:16:19 > 0:16:24trade that can be removed earlier. We have begun appointing a new
0:16:24 > 0:16:30network of trade Commission is based in market, able to maximise exports
0:16:30 > 0:16:34and investments free from centralised Whitehall targets. And
0:16:34 > 0:16:42with a presence in 108 countries, and working across Government, DIT
0:16:42 > 0:16:45is a fully integrated to department bring together expert promotion and
0:16:45 > 0:16:51trade policy. We are currently piloting a new global trade service,
0:16:51 > 0:16:55increasing support for medium-sized businesses with international
0:16:55 > 0:17:00ambitions, and DIT also has an extensive range of resources
0:17:00 > 0:17:05available to SMEs and you exported. For example, UK Export Finance has
0:17:05 > 0:17:09been recognised as one of the world's both innovative and flexible
0:17:09 > 0:17:17export credit agencies. Last year, they provided £3 billion it support,
0:17:17 > 0:17:24helping 221 UK companies sell to 63 countries around the world, and 70
0:17:24 > 0:17:33of these countries were SMEs. At a cutting edge digital platform was
0:17:33 > 0:17:36large and observers 2060, had has since been visited by over 2.8
0:17:36 > 0:17:43million users. And we are reviewing our wider strategy on exports and
0:17:43 > 0:17:47investment, including undertaking an export strategy review, working
0:17:47 > 0:17:51alongside industrial strategy to identify what we could do to help
0:17:51 > 0:17:55exports large and small across the whole of the UK businesses
0:17:55 > 0:18:10maximising their export potential.
0:18:10 > 0:18:17What does all of this mean? For our future relationship with the
0:18:17 > 0:18:21European Union and beyond? For those firms that trade with the European
0:18:21 > 0:18:25Union, keeping all of the EU regulations, the customs union and
0:18:25 > 0:18:31tariff sounds like an easy option. But we cannot allow our future to be
0:18:31 > 0:18:36determined by past. Instead we should turn our sale and hack into
0:18:36 > 0:18:42the trading winds of the future. We should exploit natural advantages to
0:18:42 > 0:18:46unlock the prosperity we need. We should be able to provide better
0:18:46 > 0:18:50preferential agreements and work more closely with the range of
0:18:50 > 0:18:53developing companies and we should build a trade policy that works for
0:18:53 > 0:18:58the long-term interests of businesses, citizens and future
0:18:58 > 0:19:03generations. There has been a lot of debate in recent days about the EU
0:19:03 > 0:19:06customs union. As we are leaving the European Union, necessarily we
0:19:06 > 0:19:12cannot remain in the customs union which is open only to EU member
0:19:12 > 0:19:18states. And the alternative has been proposed that we enter a new customs
0:19:18 > 0:19:24union with the European Union. But what would this mean? First of all,
0:19:24 > 0:19:28for goods we would have to accept EU trade rules without any see in how
0:19:28 > 0:19:36they were made, handing Brussels considerable control over the UK's
0:19:36 > 0:19:43external trade policy. Secondly, it would limit our ability to achieve
0:19:43 > 0:19:47new trade agreements. It would limit our ability to develop our trade and
0:19:47 > 0:19:51development policies that would offer new ways for the world's
0:19:51 > 0:19:56poorest nations to trade their way out of poverty. And what would a
0:19:56 > 0:20:01customs union actually consist of? Which sectors would be covered?
0:20:01 > 0:20:05Would it be like turkey which has a customs union but only for
0:20:05 > 0:20:10industrial goods and some agricultural products? Whatever it
0:20:10 > 0:20:15covered, should such a customs union be negotiated we would be forced to
0:20:15 > 0:20:19allow goods from other countries into our markets tariff be on terms
0:20:19 > 0:20:25set by Brussels without any tariff free access to the markets of other
0:20:25 > 0:20:31countries in return. And if we were to disagree, Brussels could simply
0:20:31 > 0:20:39overrule us. Those of the political left, who opposed to tip the
0:20:39 > 0:20:42agreement between the European Union and the United States might want to
0:20:42 > 0:20:54consider that in a customs union, they would have to implement any
0:20:54 > 0:20:58element of TTIP. As real tickers without any see with how the rules
0:20:58 > 0:21:03were made, we would be in a worse position than we are in today. It
0:21:03 > 0:21:07would be a complete sell-out of Britain's national interest and a
0:21:07 > 0:21:12betrayal of the voters in the referendum. Then there is the issue
0:21:12 > 0:21:16of constraints on the ability to negotiate independent trade
0:21:16 > 0:21:21arrangements. A customs union would remove the bulk of incentives for
0:21:21 > 0:21:24other countries to enter into comprehensive free trade agreements
0:21:24 > 0:21:31with the UK. If we were unable to alter the rules in whole sectors of
0:21:31 > 0:21:35our economy, as Turkey has now discovered. The inevitable price of
0:21:35 > 0:21:40trying to negotiate with one arm tied behind our back is that we
0:21:40 > 0:21:44would become less attractive to potential trade partners and forfeit
0:21:44 > 0:21:49many of the opportunities that would otherwise be available to us. And
0:21:49 > 0:21:54then there is a question of our ability to help developing countries
0:21:54 > 0:21:59in the way that we would like. Not only does the EU have half I average
0:21:59 > 0:22:08external tariff, 5.1% compared to the US, 3.5%, but it continues to
0:22:08 > 0:22:12operate tariffs and a week that particularly disadvantaged countries
0:22:12 > 0:22:17who want to add value to the primary commodities and move up value
0:22:17 > 0:22:21chains. As we leave the EU, we are committed to maintaining
0:22:21 > 0:22:26preferential access for developing countries. Outside the customs
0:22:26 > 0:22:31union, we would have the freedom to expand access and tackle barriers to
0:22:31 > 0:22:36trade to enable poorer countries genuinely to trade their way out of
0:22:36 > 0:22:42poverty and become less dependent on aid budgets. Many NGOs who look to
0:22:42 > 0:22:46Britain to lead in this area would find their aims frustrated by
0:22:46 > 0:22:52membership of a customs union. Remaining in a customs union of any
0:22:52 > 0:22:58type would only make sense if we were to abandon our global ambitions
0:22:58 > 0:23:02and limit our abilities to shape our trade policy to the changes in the
0:23:02 > 0:23:07global environment that I have outlined. Tomorrow's choices would
0:23:07 > 0:23:12be constrained by today's status quo. We would deny yourselves the
0:23:12 > 0:23:17opportunity to shape Britain's waves in the future world economy and our
0:23:17 > 0:23:21ability to influence the nature of that economy itself. Of course the
0:23:21 > 0:23:26government's aim is to ensure that UK companies, as well as those from
0:23:26 > 0:23:29abroad, retain the maximum freedom to trade with and operate within
0:23:29 > 0:23:37European markets. We watch European businesses to do the same in the UK.
0:23:37 > 0:23:42That is why we want to develop customs arrangements which lead to
0:23:42 > 0:23:46trade being as frictionless as possible at our borders in a tariff
0:23:46 > 0:23:49free environment with as few non-tariff free barriers as
0:23:49 > 0:23:56possible. And Northern Ireland, it is of course as precious part of our
0:23:56 > 0:24:01United Kingdom as any other. So it is vital that it has a full share in
0:24:01 > 0:24:05our future prosperity and our opportunities as a trading nation.
0:24:05 > 0:24:09The avoidance of a horror border in Northern Ireland is of crucial
0:24:09 > 0:24:13importance as is the prevention of trade barriers between Northern
0:24:13 > 0:24:18Ireland and Great Britain. We believe that comprehensive and
0:24:18 > 0:24:22liberal trading agreement with the EU is the best way to deal with the
0:24:22 > 0:24:28crucial important issue of avoiding that hard order. Britain has
0:24:28 > 0:24:32vigorously supported the trade agreements reached between the
0:24:32 > 0:24:36European Union and other countries, such as Canada and Japan. But we
0:24:36 > 0:24:40have done so because we believe in the principle of free trade but also
0:24:40 > 0:24:44because we believe it is the best way to increase the prosperity of
0:24:44 > 0:24:48the people of Britain and the rest of Europe. And we believe the same
0:24:48 > 0:24:54principles should apply to the agreement between the UK and the EU
0:24:54 > 0:24:58itself, as we move away from the political constraints of the union.
0:24:58 > 0:25:04We do so as one of the world's largest economies, with a strong
0:25:04 > 0:25:09alignment to the EU. We understand that outside the EU, we will no
0:25:09 > 0:25:14longer have influence in the Council of ministers, the commission or the
0:25:14 > 0:25:18European Parliament were EU rules will be made. But it would not be in
0:25:18 > 0:25:25the interest of the EU or the UK to introduce unnecessary restrictions
0:25:25 > 0:25:29on trade and investment across the European continent, where it was
0:25:29 > 0:25:33send a signal to global investors that Europe was less open for
0:25:33 > 0:25:38business than it is at present. We want any economically vibrant EU to
0:25:38 > 0:25:45be a major partner for the future in a deep and special partnership. Our
0:25:45 > 0:25:49negotiations must be focused on delivering a partnership that will
0:25:49 > 0:25:54support the prosperity, stability and security of both EU and UK
0:25:54 > 0:26:01citizens. And it will need to be best book relationship. We are not
0:26:01 > 0:26:05Canada or normally or Switzerland. We are Britain and what's more we to
0:26:05 > 0:26:11be a truly global Britain. A global Britain with ambitions to maximise
0:26:11 > 0:26:14our trade opportunities both inside and outside the EU. A global Britain
0:26:14 > 0:26:19that wants the freedom to work with global partners and one that wants
0:26:19 > 0:26:23to minimise any barriers to trade because it all comes down to
0:26:23 > 0:26:27flexibility and agility in what will become an increasingly global
0:26:27 > 0:26:33economic environment. The UK must regain the ability to negotiate our
0:26:33 > 0:26:39own trade arrangements with our own partners. To surrender this would be
0:26:39 > 0:26:46to endanger, not only our long-term prosperity, and the innovation and
0:26:46 > 0:26:49dynamism that will ensure that Britain remains a leading economic
0:26:49 > 0:26:53power, but also our ability to influence this new trading landscape
0:26:53 > 0:26:59in a way that reflects UK values and interests. We have been given a
0:26:59 > 0:27:06historic opportunity to reorientate our economy. We will have two ensure
0:27:06 > 0:27:10that we put the prosperity, stability and security of our people
0:27:10 > 0:27:16first. But we must also remember that history, experience and values
0:27:16 > 0:27:21are vital navigational tools and the confidence, optimism and vision will
0:27:21 > 0:27:26also -- always deliver more than pessimism or self-doubt. The prize
0:27:26 > 0:27:31at stake is not simply the future prosperity of the United Kingdom,
0:27:31 > 0:27:36but our ability participate in an shape the world, -- economy are one
0:27:36 > 0:27:49of the most exciting points in the world's history. It is about
0:27:49 > 0:27:53breaking down barriers, opening up markets and providing opportunities
0:27:53 > 0:27:58so that the benefits of free trade can be enjoyed, not only by the next
0:27:58 > 0:28:02generation in this country but so that some of the world poorest can
0:28:02 > 0:28:07share in the fruits of our prosperity. We are at a crossroads
0:28:07 > 0:28:15with a historic opportunity to help shape our global future. For the
0:28:15 > 0:28:23better. And we have a duty to grasp it. Thank you.
0:28:28 > 0:28:37APPLAUSE I will take a question from Tim
0:28:37 > 0:28:47Rose. It may be winter outside, but here in Bloomberg, it feels like the
0:28:47 > 0:28:55height of summer.Your former permanent secretary has likened the
0:28:55 > 0:29:00planned new outline to swapping as three course meal for a packet of
0:29:00 > 0:29:05crisps. What is your response to that. Are you worried that there are
0:29:05 > 0:29:09some in the British establishment who do not accept exit and want to
0:29:09 > 0:29:15stop it. The second point I would like to raise, William Hague, your
0:29:15 > 0:29:18own former leader today has said that conservatives who bid to keep
0:29:18 > 0:29:25the UK in the customs union will help bring down the government and
0:29:25 > 0:29:30usher in Jeremy Corbyn.Is he right? First of all, it is unsurprising
0:29:30 > 0:29:37that those who spent a lifetime working within the European Union
0:29:37 > 0:29:40would see moving away from the European Union as being threatening.
0:29:40 > 0:29:49The particular choice that I heard was trade opportunities elsewhere
0:29:49 > 0:29:52and continuation of EU trade agreements, I do not believe that is
0:29:52 > 0:29:57a choice we face. We are already trying to seek a Phil and liberal
0:29:57 > 0:30:01partnership with the European Union, we are having discussions about
0:30:01 > 0:30:06expanding our trade agreements beyond the EU and rolling over the
0:30:06 > 0:30:10EU agreements into UK law so we get no disruption in terms of market
0:30:10 > 0:30:15access at the point of exit. It is not a choice of one or the other,
0:30:15 > 0:30:21and in any case I think the UK bread is, as we have all discovered, more
0:30:21 > 0:30:26complex than a packet of walkers. When it comes to the other issues, I
0:30:26 > 0:30:31hope we will persuade colleagues as Prime Minister sets out the case,
0:30:31 > 0:30:34that the Cabinet will find it persuasive and they will understand
0:30:34 > 0:30:42the definite -- benefits the Prime Minister will outline will lead to
0:30:42 > 0:30:45greater prosperity and security for the people of this country. And that
0:30:45 > 0:30:50they understand the drawbacks of a customs union I have set out to date
0:30:50 > 0:30:54will hinder this country in terms of the future economic opportunities
0:30:54 > 0:31:02that might otherwise be available. The Federation of Small Businesses.
0:31:02 > 0:31:07We have heard a lot about big business use. Can you spell out for
0:31:07 > 0:31:12us more clearly that the potential benefits to smaller businesses and
0:31:12 > 0:31:17how do we increase small business exporters and importers from one in
0:31:17 > 0:31:23three to one and two.Or more? We have been having, as a department,
0:31:23 > 0:31:29taking a great deal of interest in how we get more SMEs in getting into
0:31:29 > 0:31:34export. Where small businesses, up till in October last year had to go
0:31:34 > 0:31:39through a lengthy process to apply for export finance, we have
0:31:39 > 0:31:45delegated powers to the banks so you can walk into a bike as an SMA need
0:31:45 > 0:31:54-- bank as an M S -- SME. We have discussed with you in aid to states
0:31:54 > 0:32:00decided that we want to have an SME forum, we have 100 businesses taking
0:32:00 > 0:32:05part in the next round of our trade dialogue group. We do need to try
0:32:05 > 0:32:12and open all of this up, part of that is access to the digital
0:32:12 > 0:32:17economy. These are ways that small businesses can take advantage of a
0:32:17 > 0:32:22global marketplace. And the UK will want to see liberalisation of that
0:32:22 > 0:32:26as we move forward, as you are well aware, that one of the problems we
0:32:26 > 0:32:32have ads in taking trade agreements for red was that there are problems
0:32:32 > 0:32:38and differences of opinion in the EU about data localisation. For global
0:32:38 > 0:32:43economy you have to be able to move goods and services and data and that
0:32:43 > 0:32:53will be essential for SMEs. British exporters.There are a number of
0:32:53 > 0:32:59barriers for businesses exporting or to increase their exports today, one
0:32:59 > 0:33:06of them is attitudes to exporting. How can government 's further assist
0:33:06 > 0:33:10in changing that attitude and equally how can businesses who are
0:33:10 > 0:33:20already exporting assist in inspiring others to export.
0:33:20 > 0:33:23Extremely good question, because part of our problem is cultural, and
0:33:23 > 0:33:27part of a problem as business experience. Government can do a lot
0:33:27 > 0:33:33more about the latter, and by expanding our overseas network, by
0:33:33 > 0:33:37putting our experts into the market, as we have done, we can actually
0:33:37 > 0:33:43make some of those barriers diminish at the point of exporting itself. We
0:33:43 > 0:33:45can also give companies better information about the sort of
0:33:45 > 0:33:52cultures they will be exporting and and a sort of help Government might
0:33:52 > 0:33:57be able to give. I think we're beginning to see change. As I said
0:33:57 > 0:34:01right at the beginning, some of the questions that we are asking today
0:34:01 > 0:34:10are as a result of the referendum. Some of them had to be asked enemy.
0:34:10 > 0:34:18Why was it Government on the exporting 28% of GDP when Germany
0:34:18 > 0:34:25was doing more? Do we have to look at debt financing versus other ways
0:34:25 > 0:34:29of growing small companies? The good news is that many companies across
0:34:29 > 0:34:36this country have already risen to the challenge. Preliminary figures
0:34:36 > 0:34:42for 2017 suggest that not only have read past 28% of our GDP that we
0:34:42 > 0:34:47export, but we have actually passed 30% by a margin that may be one of
0:34:47 > 0:34:51our best export performances for many decades. So, I think that the
0:34:51 > 0:34:57understanding is out there, that the European debate has brought the
0:34:57 > 0:35:01focus onto some of our other exporting performances. We will do
0:35:01 > 0:35:06what we can, but I hope that in your organisation you hold up those
0:35:06 > 0:35:09companies that have successfully exported so that when people see it
0:35:09 > 0:35:15is too difficult, you can say, as we have in our latest campaign, if I
0:35:15 > 0:35:19can, you can, postage will be seen around the country quite soon.
0:35:19 > 0:35:30Simon?In her speech yesterday, Jeremy Corbyn said that there is a
0:35:30 > 0:35:40threat to the NHS and other public services. It says it would open the
0:35:40 > 0:35:52door to a flood. How do you respond to the charge that it will allow
0:35:52 > 0:36:04foreign companies to come to the UK and forced a the privatisation.In
0:36:04 > 0:36:09any future agreement, we will absolutely preserve the rights of
0:36:09 > 0:36:14governments to preserve that. That has been a commitment. But I have to
0:36:14 > 0:36:20say, you can only do that if you actually in of the agreement is
0:36:20 > 0:36:23itself. If you sign up to an agreement, you have to accept the
0:36:23 > 0:36:28agreements that are made by others without having any say in it, and if
0:36:28 > 0:36:35you do not like it, that is tough. My message to the incoherent, enact
0:36:35 > 0:36:39and clueless performance of the Labour Party in recent days is, you
0:36:39 > 0:36:43cannot wish the outcomes without wishing the means to deliver those
0:36:43 > 0:36:47outcomes, and it doesn't seem to have been much thought given to what
0:36:47 > 0:36:50could be imposed upon the United Kingdom to a customs union if we
0:36:50 > 0:36:55don't want it. The approach that I set out his UK control over UK trade
0:36:55 > 0:37:03policy. What the Labour Party is setting out is a dive into the
0:37:03 > 0:37:06unknown, and having to accept filter made by others and not by
0:37:06 > 0:37:08themselves. And it was interesting that as Jeremy Corbyn was giving his
0:37:08 > 0:37:11beach yesterday, the leader of the world's Labour Party was in the
0:37:11 > 0:37:14United States telling them how quickly they wanted a new
0:37:14 > 0:37:17independent trade agreement with United States. You cannot make it
0:37:17 > 0:37:29up. It would be funny if it was not so tragic. Very last question.Given
0:37:29 > 0:37:35that your former head of Department has said she would need a fairy
0:37:35 > 0:37:39godmother to get the kind of have cake and eat it deal that he says
0:37:39 > 0:37:43you want with the good opinion, and you yourself have said that British
0:37:43 > 0:37:48business needs to raise its game to take full advantage of Brexit, is
0:37:48 > 0:37:51the greatest danger that Brexit could lead to national self harm,
0:37:51 > 0:37:57that there simply aren't enough true like you?I think that we need to
0:37:57 > 0:38:01set out an ambitious programme for the United Kingdom. It is not about
0:38:01 > 0:38:05sticking to the patterns of the past, and I understand, as I say,
0:38:05 > 0:38:10that those who have been professor committed to those for many years,
0:38:10 > 0:38:14will want to idea to them. I want to think beyond where we are to do to
0:38:14 > 0:38:18the opportunities available in the future. As I said in the beginning,
0:38:18 > 0:38:22the IMF has pointed out that 90% of global growth will be outside the
0:38:22 > 0:38:27European continent in the next ten to 15 years. We cannot afford to be
0:38:27 > 0:38:30bound by the practices and the patterns of the past. We have to
0:38:30 > 0:38:35take the opportunities available and fitted by those who would make the
0:38:35 > 0:38:44rules on our behalf. And as I said, Linus said Martin anyone else has
0:38:44 > 0:38:48seen a few details of what was revealed that check as last week.
0:38:48 > 0:38:53When the Prime Minister settles out on Friday, he will find out that
0:38:53 > 0:38:55what we need is a hard-headed leader, not a fairy godmother. Thank
0:38:55 > 0:39:06you very much.