Liam Fox warns EU that building ‘seductive’ barriers against a post-Brexit UK could hit Europe ‘like a Class A drug
International Trade Secretary warned it would be 'self-defeating' move to erect barriers to trading with UK after Brexit
LIAM Fox has warned the EU against “seductive” protectionism that he likens to a class A drug that makes “you feel good at first” but was “disastrous” over time.
The International Trade Secretary warned it would be a "self-defeating" move for Europe's leaders to erect barriers to trading with the UK after Brexit.
The Cabinet minister even warned it would be "politically irresponsible" as he warned Brussels such a move would cause economic damage across the continent.
In his speech at the Conservative spring forum in Cardiff, with Mrs May poised to begin the Brexit process within a fortnight, Dr Fox issued his warning to EU officials and politicians who will decide the terms of any deal.
He said: "Given the challenges facing commercial interests across the globe, we should all consider whether we really want to create barriers where none currently exist.
"So, we must be absolutely clear that any new impediments to trade and investment in Europe would not only be politically irresponsible, but economically dangerous - and not just for Europe but for the wider global economy too.
"We know that when we leave the EU, we will not have an EU commissioner, MEPs or a seat at the European Council.
“That is a political decision that we have consciously taken following the instruction from the British people at the referendum. It is a political response to a political decision.
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"But it would surely be wholly inappropriate if our political decision was to be met with an economic response - in other words, if barriers to trade and investment were introduced across Europe that would damage the economic potential of all European citizens and those well beyond Europe too.
"That would be self-defeating."
Dr Fox defended globalisation and free trade in his speech and warned against the "rising chorus of protectionism"; in the world.
He said: "Protectionism can be seductive but is a dangerous liaison. I have described it as the class A drug of the trading world - it can make you feel good at first but it can prove disastrous in the long term.
"It is economically destructive, preventing us from reallocating global resources effectively. It is also socially regressive because those on lower incomes spend a higher proportion of their money on goods than services so tariffs and barriers will hurt the poor more."
The Cabinet minister was a prominent Leave supporter and urged people to be optimistic about the country's future after Brexit.
"It is time for us to ignore the siren voices, the naysayers and the doom-mongers. Instead of talking Britain down, it is time to talk up our opportunities, our skills and our talents.
"Our plan for Britain is not for a nation cowering in the international shadows but confident, strong and optimistic, willing to lead not follow and helping to shape the world around us".
Speaking after Dr Fox, Mrs May hit out at Nicola Sturgeon’s “tunnel vision” and “divisive nationalism” as she prepares to begin the Brexit process within two weeks.