Theresa May is flying to Canada to “prepare the ground” for a post-Brexit trade deal, after deep Cabinet splits emerged once more over her Government’s approach to leaving the EU.
The Prime Minister and her Canadian counterpart Justin Trudeau are expected to agree that the new trade deal between the EU and Canada – which comes into effect on 21 September – should be “swiftly transitioned” to form the basis of a bilateral deal between the two countries when Britain quits the EU.
The Canada-EU deal, which eliminates 98% of Canadian import duties, is a “significant boon” for British exporters, said Number 10, as it announced plans for a joint working group to work on the bilateral deal post Brexit.
The trade relationship between the UK and Canada is worth £15.2bn a year, with more than 10,000 British companies exporting goods to Canada.
A number of commercial deals are expected to be signed on her one-day visit as the Prime Minister also hosts a business round table with major Canadian investors into the UK.
But Mrs May’s attempts to build global goodwill over Brexit was undermined over the weekend after Boris Johnson penned a lengthy article in The Daily Telegraph setting out his Brexit blueprint, on the eve of her Canadian trip and just days before she delivers a keynote Brexit speech in Florence.
Video: Boris accused of trying to undermine PM
Mr Johnson’s intervention has sparked speculation he is preparing a leadership challenge.
It provoked fury from some backbenchers and has raised questions over his future as Foreign Secretary as deep Cabinet divisions on Brexit were laid bare once more.
Amber Rudd, the pro-Remain Home Secretary, accused him of “backseat driving” as she urged ministers to be united in their approach to Brexit. Downing Street sought to keep a lid on the tensions – insisting that Mr Johnson would not be sacked.
The Foreign Secretary is not due to travel with the Prime Minister for her flying visit to Ottawa – she is in the country for just eight hours – but the pair will be reunited at the United Nations General Assembly summit in New York later in the week.
Number 10 said Mr Johnson is expected to attend Mrs May’s speech on UN reform on Wednesday.
Mrs May’s visit to Canada comes three weeks after she travelled to Japan, again with the aim of securing a bilateral deal with the country after Brexit.
Japan and the EU have yet to finalise a trade deal.
The UK cannot sign any trade deals with other countries while it is a member of the EU. But the Government is busily preparing the ground for post-Brexit deals with leading world economies which also include the US.
When Britain leaves the EU, it will fall out of trade deals between the European trading bloc and other countries, such as the Canadian deal which took seven years to negotiate.
However, it is unclear what will happen regarding such trade deals during a “transition period” expected to last up to three years after the official Brexit date in March 2019.
The Prime Minister said her visit was about “recognising our past but also looking ahead to our bright future”.
She added: “We are both countries with ambitions to lead on the world stage and progressive values that underpin those ambitions – values including the importance of free trade, and respect of international law.”
Number 10 has appointed Andrew Percy, the former northern powerhouse minister, as her new trade envoy for Canada.
Source: Sky