Liam Fox Briefings

Thanks very much.

Thank you for the introduction and

thank you to Bloomberg for hosting

us in such wonderful surroundings.

It's a pleasure to be here today to

talk about Britain's trading future.

The historic decision by the British

people to leave the EU has presented

this country with a number of

choices about its future global

direction. It has generated a great

deal of soul-searching and caused a

number of important questions to be

aired. Some of these relate

specifically to the referendum

decision itself. Others are

questions which needed to be

addressed anyway, but have been

brought into sharper focus by that

decision. Where do we see our place

in the world? What sort of economy

and what sort of country do we want

to be? What should our influence be

in global affairs and global trade?

And how will we generate the income

we will need to ensure a prosperous

and secure future for the

generations that come after us?

Since the referendum vote and the

creation of the Department for

International Trade, my team and I

have undertaken 150 overseas visits

to all parts of the globe and to

market is large and small. From

across the world, the key is to

deepen trade and investment ties

with this country and once again he

has championed the cause for free

trade, it is palpable. Why should

that surprise us? The UK is one of

the largest and most successful

economies. We are at record levels

of employment. Our success is

underpinned by a legal system whose

reputation is second to none. We

have a skilled workforce and a low

tax and well regulated economy. We

are home to some of the world's

finest universities, our research

and development capabilities are

cutting age under financial

institutions world beating. We are

in any time zone that can trade with

Asia in the morning of the United

States in the afternoon, and we

speak English, the global language

of business. In 2017, we saw the

highest level of foreign investment

projects in the UK in our history.

As the world's leading companies

offered a strong vote of confidence

in the future of our economy. This

was matched by an increase of 11% in

the value of our exports. In 2017,

600 and £17 billion of UK goods and

services were sold overseas,

narrowing our trade deficit by just

under £7 billion. The second half of

2017 also saw strong growth in

manufacturing output. Partly as a

result of this improved export

performance, order books were

British manufacturers remained well

above their long-term average, and

this is testament to the hard work

and dedication from British

businesses, large and small, up and

down the UK.

And tag and innovation. In the last

year we have had more than 15,000

tech start-ups in country, and more

venture capital in the attack was

invested in London last year that

ended the whole of Germany, France,

Spain and Ireland put together. This

all adds up to an extremely positive

picture, one that should give us

confidence in dealing with the

global opportunities that we might

seize. This conference is key to be

able to take advantage of it

dramatically shifting picture around

the world, the previous assumptions

are being challenged, Robert and

France is moving, and new markets

are blossoming. I often beat the IMF

that in the next ten to 15 years,

90%, 90%, of global economic growth

will imagine it from outside the

European Union. This is not in any

way to diminish the importance of

Europe as an economic market and

partner, but merely to point out the

scale of the shift in global

economic activity so that we add

orientated towards the most income

generating parts of the global

economy. This thriving economies of

south and east Asia, and increasing

the Africa and will become even more

important as their new-found

prosperity drives demand for the

goods and services of the developed

countries prepared to enter right

with their markets. By 2020, China's

middle-class is expected to number

600 million, and by 2050, Africa, on

its own, will represent 54% of the

world population increase. By 2030,

China will have over 220 cities with

the population greater than 1

million people. The whole of Europe

will have 35. And on top of the fast

Asia-Pacific growth, it is predicted

that there will be 1.1 billion

middle-class Africans died 2060.

Such is just not just in global

demographics, but in the rise of the

collected wealth of vamping

countries will develop radical than

all of opportunities of the future

will be, and we are we must be too.

Markets are already out there for

the best that Britain has to offer.

I see it on every overseas trade

visit their time it. From the export

goods, from top end fashion, to

high-quality cars, discuss risky, to

high-end manufacturing, the demand

is growing. For professional

services too, from accountancy to

law to education or life sciences

financial services, these newly

emergent middle classes bonded more

of these deals where we are already

world-class. Is here that we will

find the United Kingdom's unique

comparative advantage. We must as a

contraceptive site at this future.

We have to take a long-term view,

and our future must be global,

because the pattern of our trade is

changing. 57% of Britain's's exports

and noted outside the EU, compared

with only 46% in 2006. What is more,

while our EU export are still

dominated by goods, our non-EU

exporter evenly split between goods

and services. An approach should not

be premised on simply identifying

how much of our current relationship

we want to keep, but what we need to

prosper in a rapidly changing global

environment. We cannot let the

practices and the patterns of the

past constraints the opportunities

of the future. We require an

economic outlook that allows us to

take advantage of this substantial

opportunities that Europe will

continue to break, but without

limiting our ability to add that to

a changing and growing world beyond

to the European continent. The UK is

perfectly placed to partner with the

economic powerhouses of the future,

and they in turn out eager for the

mutual prosperity that such a

partnership would bring. To do this,

we need the ability to exercise a

fully independent trade policy. We

have to maximise our overall trading

opportunities for the UK to secure

the prosperity of our people. Now,

in the first speech I gave as

Secretary of State for International

Development, I set out Britain

passed by a proud tradition of

defending both the concept and

practice are featured. Type a time

again studies have found evidence of

a shock positive correlation between

economic openness and growth. During

the 1990s, per capita income grew

three tenths faster in developing

countries that Lord trade barriers

that in those that did it. That

effect is not confined to developing

countries either. The growth project

found that a 10% increase in trade

exposure was associated with a four

percent rise in income per capita.

In other words, free trade works.

Globalisation has been of huge and

sustainable benefit to the economy,

including in trade, specialisation

and innovation. It was competition,

economies of scale and global value

chains have all contributed to a

productivity revolution, boosting

the output of businesses across the

globe, and when free-trade

agreements are reached, the positive

effect on businesses, edited and

economies can be remarkable. The EU

career free-trade agreement, which

came into effect in July 2011 is

just one example. In the year before

the deal was agreed, the UK beer and

cider industry sold almost a thing

to Korea. Exports were added to what

you post. By 2070, however, sales to

South Korea have exploded 2/93

million pounds. -- by 2017. Feature

can be particularly imported to

developing countries as they get

access to cutting edge technologies,

and millions more consumers of their

goods. As the world's emerging and

developing economies have

liberalised trade practices,

prosperity has big, big industry,

jobs and wealth when there was once

only deprivation. According to the

World Bank, the three decade between

1981 and 2010 witnesses singled

great is the truth in material

deprivation in human history. 1

billion people were taken out of

abject poverty in a just one

generation. That is why it is

morally applicable to reject free

and open trade. Added is that those

overseas markets that benefit. We do

so here at home as well. Although it

might not always be noticed, the

wider benefits of a liberal trade

policy are shared by consumers and

households across the country. By

providing a wider choice of goods at

a lower price. It provides a

supermarket with the ability to sell

us back a full range of foods all

year round, and enables electronic

retailers to sell us increasingly

sophisticated technologies at lower

prices, from TVs to computers to

mobile phones. And all this helps

income go further. For example, and

a decade to 2006, the real price of

clothing fell by 38%, a real help

for families with children. But more

than lower prices, open markets

allow consumers the ability to

choose where the source goods, to

ensure sustainability, and the

propagation of our wider values,

including an environmental agenda

and containing the high standards in

the food that we can buy. As with

many freedoms, free and open trade

can be taken for granted, but the

reality is that these freedoms and

the benefits that the instilled

habit hard one, and have to

continually be defended from decided

call of protectionism and the

anti-trade lobby. That is why I

voted for a post-Brexit Britain is

one of leadership. The UK is already

a committed member of the World

Trade Organisation, a body which is

the whole of the International rules

-based trading system that we fully

support. Currently, a direction and

action within the WTO is determined

by our membership of the EU. But

soon, the UK will begin the full

authority of independent membership.

They will establish a role in

training schedules. We are taking

the necessary steps that are leaving

the year we will exceed to the

agreement on Government procurement,

and we will begin to exercise a

independent voice. The UK stands

ready to offer a clear leadership,

to be a star stiff edge of trading

rights and freedoms, not only at the

WTO but at other international

bodies too. Moreover, we can help

forge the way of the liberalisation

of those areas of global trade by

the WTO and other bodies have yet to

extend their reach, services, the

digital economy. The knowledge

economy is growing. Digital trade is

inherently transnational, and

e-commerce offers previously unknown

opportunities for SMEs and

individuals, particularly women, to

take part in the globalised economy.

In many areas of this important and

Jeddah, the EU has been unable to

keep pace. There is a real

opportunity for the UK to become a

global leader in digital trade. If

we are to lose, then we must ask

yourself what leadership looks like.

-- every are too late. But of the

value of current trading practices

at the rigidity. There is a tendency

among some patients to cling to the

Nordic trading mechanisms, more

suited to the structures of the past

that the digital age of the future.

Flexibility and agility, then, are

the key to any future trade policy.

The ability to react quickly to new

development, to explore new

opportunities, and to Doctor

floating industries will be the key

to growth and prosperity in the

coming years. That's why my

department is pursuing a more

flexible approach to our country's

trading future. There is a growing

awareness that is global gold plated

free-trade agreement may not be the

only solution in a fast changing

global economy. Fortunately, there

is a global trade tool box from

which we can choose the most

appropriate mechanisms for

liberalising trade. The trade from

the members of multilateral

agreements to mutual recognition

agreements, and this sort of actor

-based equivalents approach recently

advanced by the Government of the

Bank of England. We look consider

multi-country alliances to be

like-minded right down to bilateral

arrangements, using all the

advantage available to us back from

our diplomatic network. All of these

options are available, but only two

countries with independent trade

policies. In the past 20 months of

DITs excesses, this work has begun

in earnest. We have laid the

groundwork for future trade

agreements, but will also work to

identify those nontariff barriers to

trade that can be removed earlier.

We have begun appointing a new

network of trade Commission is based

in market, able to maximise exports

and investments free from

centralised Whitehall targets. And

with a presence in 108 countries,

and working across Government, DIT

is a fully integrated to department

bring together expert promotion and

trade policy. We are currently

piloting a new global trade service,

increasing support for medium-sized

businesses with international

ambitions, and DIT also has an

extensive range of resources

available to SMEs and you exported.

For example, UK Export Finance has

been recognised as one of the

world's both innovative and flexible

export credit agencies. Last year,

they provided £3 billion it support,

helping 221 UK companies sell to 63

countries around the world, and 70

of these countries were SMEs. At a

cutting edge digital platform was

large and observers 2060, had has

since been visited by over 2.8

million users. And we are reviewing

our wider strategy on exports and

investment, including undertaking an

export strategy review, working

alongside industrial strategy to

identify what we could do to help

exports large and small across the

whole of the UK businesses

maximising their export potential.

What does all of this mean? For our

future relationship with the

European Union and beyond? For those

firms that trade with the European

Union, keeping all of the EU

regulations, the customs union and

tariff sounds like an easy option.

But we cannot allow our future to be

determined by past. Instead we

should turn our sale and hack into

the trading winds of the future. We

should exploit natural advantages to

unlock the prosperity we need. We

should be able to provide better

preferential agreements and work

more closely with the range of

developing companies and we should

build a trade policy that works for

the long-term interests of

businesses, citizens and future

generations. There has been a lot of

debate in recent days about the EU

customs union. As we are leaving the

European Union, necessarily we

cannot remain in the customs union

which is open only to EU member

states. And the alternative has been

proposed that we enter a new customs

union with the European Union. But

what would this mean? First of all,

for goods we would have to accept EU

trade rules without any see in how

they were made, handing Brussels

considerable control over the UK's

external trade policy. Secondly, it

would limit our ability to achieve

new trade agreements. It would limit

our ability to develop our trade and

development policies that would

offer new ways for the world's

poorest nations to trade their way

out of poverty. And what would a

customs union actually consist of?

Which sectors would be covered?

Would it be like turkey which has a

customs union but only for

industrial goods and some

agricultural products? Whatever it

covered, should such a customs union

be negotiated we would be forced to

allow goods from other countries

into our markets tariff be on terms

set by Brussels without any tariff

free access to the markets of other

countries in return. And if we were

to disagree, Brussels could simply

overrule us. Those of the political

left, who opposed to tip the

agreement between the European Union

and the United States might want to

consider that in a customs union,

they would have to implement any

element of TTIP. As real tickers

without any see with how the rules

were made, we would be in a worse

position than we are in today. It

would be a complete sell-out of

Britain's national interest and a

betrayal of the voters in the

referendum. Then there is the issue

of constraints on the ability to

negotiate independent trade

arrangements. A customs union would

remove the bulk of incentives for

other countries to enter into

comprehensive free trade agreements

with the UK. If we were unable to

alter the rules in whole sectors of

our economy, as Turkey has now

discovered. The inevitable price of

trying to negotiate with one arm

tied behind our back is that we

would become less attractive to

potential trade partners and forfeit

many of the opportunities that would

otherwise be available to us. And

then there is a question of our

ability to help developing countries

in the way that we would like. Not

only does the EU have half I average

external tariff, 5.1% compared to

the US, 3.5%, but it continues to

operate tariffs and a week that

particularly disadvantaged countries

who want to add value to the primary

commodities and move up value

chains. As we leave the EU, we are

committed to maintaining

preferential access for developing

countries. Outside the customs

union, we would have the freedom to

expand access and tackle barriers to

trade to enable poorer countries

genuinely to trade their way out of

poverty and become less dependent on

aid budgets. Many NGOs who look to

Britain to lead in this area would

find their aims frustrated by

membership of a customs union.

Remaining in a customs union of any

type would only make sense if we

were to abandon our global ambitions

and limit our abilities to shape our

trade policy to the changes in the

global environment that I have

outlined. Tomorrow's choices would

be constrained by today's status

quo. We would deny yourselves the

opportunity to shape Britain's waves

in the future world economy and our

ability to influence the nature of

that economy itself. Of course the

government's aim is to ensure that

UK companies, as well as those from

abroad, retain the maximum freedom

to trade with and operate within

European markets. We watch European

businesses to do the same in the UK.

That is why we want to develop

customs arrangements which lead to

trade being as frictionless as

possible at our borders in a tariff

free environment with as few

non-tariff free barriers as

possible. And Northern Ireland, it

is of course as precious part of our

United Kingdom as any other. So it

is vital that it has a full share in

our future prosperity and our

opportunities as a trading nation.

The avoidance of a horror border in

Northern Ireland is of crucial

importance as is the prevention of

trade barriers between Northern

Ireland and Great Britain. We

believe that comprehensive and

liberal trading agreement with the

EU is the best way to deal with the

crucial important issue of avoiding

that hard order. Britain has

vigorously supported the trade

agreements reached between the

European Union and other countries,

such as Canada and Japan. But we

have done so because we believe in

the principle of free trade but also

because we believe it is the best

way to increase the prosperity of

the people of Britain and the rest

of Europe. And we believe the same

principles should apply to the

agreement between the UK and the EU

itself, as we move away from the

political constraints of the union.

We do so as one of the world's

largest economies, with a strong

alignment to the EU. We understand

that outside the EU, we will no

longer have influence in the Council

of ministers, the commission or the

European Parliament were EU rules

will be made. But it would not be in

the interest of the EU or the UK to

introduce unnecessary restrictions

on trade and investment across the

European continent, where it was

send a signal to global investors

that Europe was less open for

business than it is at present. We

want any economically vibrant EU to

be a major partner for the future in

a deep and special partnership. Our

negotiations must be focused on

delivering a partnership that will

support the prosperity, stability

and security of both EU and UK

citizens. And it will need to be

best book relationship. We are not

Canada or normally or Switzerland.

We are Britain and what's more we to

be a truly global Britain. A global

Britain with ambitions to maximise

our trade opportunities both inside

and outside the EU. A global Britain

that wants the freedom to work with

global partners and one that wants

to minimise any barriers to trade

because it all comes down to

flexibility and agility in what will

become an increasingly global

economic environment. The UK must

regain the ability to negotiate our

own trade arrangements with our own

partners. To surrender this would be

to endanger, not only our long-term

prosperity, and the innovation and

dynamism that will ensure that

Britain remains a leading economic

power, but also our ability to

influence this new trading landscape

in a way that reflects UK values and

interests. We have been given a

historic opportunity to reorientate

our economy. We will have two ensure

that we put the prosperity,

stability and security of our people

first. But we must also remember

that history, experience and values

are vital navigational tools and the

confidence, optimism and vision will

also -- always deliver more than

pessimism or self-doubt. The prize

at stake is not simply the future

prosperity of the United Kingdom,

but our ability participate in an

shape the world, -- economy are one

of the most exciting points in the

world's history. It is about

breaking down barriers, opening up

markets and providing opportunities

so that the benefits of free trade

can be enjoyed, not only by the next

generation in this country but so

that some of the world poorest can

share in the fruits of our

prosperity. We are at a crossroads

with a historic opportunity to help

shape our global future. For the

better. And we have a duty to grasp

it. Thank you.

APPLAUSE

I will take a question from Tim

Rose. It may be winter outside, but

here in Bloomberg, it feels like the

height of summer.

Your former

permanent secretary has likened the

planned new outline to swapping as

three course meal for a packet of

crisps. What is your response to

that. Are you worried that there are

some in the British establishment

who do not accept exit and want to

stop it. The second point I would

like to raise, William Hague, your

own former leader today has said

that conservatives who bid to keep

the UK in the customs union will

help bring down the government and

usher in Jeremy Corbyn.

Is he right?

First of all, it is unsurprising

that those who spent a lifetime

working within the European Union

would see moving away from the

European Union as being threatening.

The particular choice that I heard

was trade opportunities elsewhere

and continuation of EU trade

agreements, I do not believe that is

a choice we face. We are already

trying to seek a Phil and liberal

partnership with the European Union,

we are having discussions about

expanding our trade agreements

beyond the EU and rolling over the

EU agreements into UK law so we get

no disruption in terms of market

access at the point of exit. It is

not a choice of one or the other,

and in any case I think the UK bread

is, as we have all discovered, more

complex than a packet of walkers.

When it comes to the other issues, I

hope we will persuade colleagues as

Prime Minister sets out the case,

that the Cabinet will find it

persuasive and they will understand

the definite -- benefits the Prime

Minister will outline will lead to

greater prosperity and security for

the people of this country. And that

they understand the drawbacks of a

customs union I have set out to date

will hinder this country in terms of

the future economic opportunities

that might otherwise be available.

The Federation of Small Businesses.

We have heard a lot about big

business use. Can you spell out for

us more clearly that the potential

benefits to smaller businesses and

how do we increase small business

exporters and importers from one in

three to one and two.

Or more? We

have been having, as a department,

taking a great deal of interest in

how we get more SMEs in getting into

export. Where small businesses, up

till in October last year had to go

through a lengthy process to apply

for export finance, we have

delegated powers to the banks so you

can walk into a bike as an SMA need

-- bank as an M S -- SME. We have

discussed with you in aid to states

decided that we want to have an SME

forum, we have 100 businesses taking

part in the next round of our trade

dialogue group. We do need to try

and open all of this up, part of

that is access to the digital

economy. These are ways that small

businesses can take advantage of a

global marketplace. And the UK will

want to see liberalisation of that

as we move forward, as you are well

aware, that one of the problems we

have ads in taking trade agreements

for red was that there are problems

and differences of opinion in the EU

about data localisation. For global

economy you have to be able to move

goods and services and data and that

will be essential for SMEs. British

exporters.

There are a number of

barriers for businesses exporting or

to increase their exports today, one

of them is attitudes to exporting.

How can government 's further assist

in changing that attitude and

equally how can businesses who are

already exporting assist in

inspiring others to export.

Extremely good question, because

part of our problem is cultural, and

part of a problem as business

experience. Government can do a lot

more about the latter, and by

expanding our overseas network, by

putting our experts into the market,

as we have done, we can actually

make some of those barriers diminish

at the point of exporting itself. We

can also give companies better

information about the sort of

cultures they will be exporting and

and a sort of help Government might

be able to give. I think we're

beginning to see change. As I said

right at the beginning, some of the

questions that we are asking today

are as a result of the referendum.

Some of them had to be asked enemy.

Why was it Government on the

exporting 28% of GDP when Germany

was doing more? Do we have to look

at debt financing versus other ways

of growing small companies? The good

news is that many companies across

this country have already risen to

the challenge. Preliminary figures

for 2017 suggest that not only have

read past 28% of our GDP that we

export, but we have actually passed

30% by a margin that may be one of

our best export performances for

many decades. So, I think that the

understanding is out there, that the

European debate has brought the

focus onto some of our other

exporting performances. We will do

what we can, but I hope that in your

organisation you hold up those

companies that have successfully

exported so that when people see it

is too difficult, you can say, as we

have in our latest campaign, if I

can, you can, postage will be seen

around the country quite soon.

Simon?

In her speech yesterday,

Jeremy Corbyn said that there is a

threat to the NHS and other public

services. It says it would open the

door to a flood. How do you respond

to the charge that it will allow

foreign companies to come to the UK

and forced a the privatisation.

In

any future agreement, we will

absolutely preserve the rights of

governments to preserve that. That

has been a commitment. But I have to

say, you can only do that if you

actually in of the agreement is

itself. If you sign up to an

agreement, you have to accept the

agreements that are made by others

without having any say in it, and if

you do not like it, that is tough.

My message to the incoherent, enact

and clueless performance of the

Labour Party in recent days is, you

cannot wish the outcomes without

wishing the means to deliver those

outcomes, and it doesn't seem to

have been much thought given to what

could be imposed upon the United

Kingdom to a customs union if we

don't want it. The approach that I

set out his UK control over UK trade

policy. What the Labour Party is

setting out is a dive into the

unknown, and having to accept filter

made by others and not by

themselves. And it was interesting

that as Jeremy Corbyn was giving his

beach yesterday, the leader of the

world's Labour Party was in the

United States telling them how

quickly they wanted a new

independent trade agreement with

United States. You cannot make it

up. It would be funny if it was not

so tragic. Very last question.

Given

that your former head of Department

has said she would need a fairy

godmother to get the kind of have

cake and eat it deal that he says

you want with the good opinion, and

you yourself have said that British

business needs to raise its game to

take full advantage of Brexit, is

the greatest danger that Brexit

could lead to national self harm,

that there simply aren't enough true

like you?

I think that we need to

set out an ambitious programme for

the United Kingdom. It is not about

sticking to the patterns of the

past, and I understand, as I say,

that those who have been professor

committed to those for many years,

will want to idea to them. I want to

think beyond where we are to do to

the opportunities available in the

future. As I said in the beginning,

the IMF has pointed out that 90% of

global growth will be outside the

European continent in the next ten

to 15 years. We cannot afford to be

bound by the practices and the

patterns of the past. We have to

take the opportunities available and

fitted by those who would make the

rules on our behalf. And as I said,

Linus said Martin anyone else has

seen a few details of what was

revealed that check as last week.

When the Prime Minister settles out

on Friday, he will find out that

what we need is a hard-headed

leader, not a fairy godmother. Thank

you very much.