Major Whitehall turf war breaks out between Philip Hammond and Dr Liam Fox over Britain’s post-Brexit trade policy
Ministers row over whether new free trade deals with non-EU countries will compensate for leaving the customs union
A MAJOR Whitehall turf war has broken out between Philip Hammond and Dr Liam Fox over Britain’s post-Brexit trade policy.
The Chancellor’s Treasury staff have challenged the International Trade Secretary’s department to assess whether new free trade deals with non-EU countries will compensate for leaving the customs union.
It is seen as a ploy by Mr Hammond - who is leading efforts to deliver a “soft” Brexit - to keep Britain closely tied to the EU’s customs union to avoid disruption for business.
But the move is fiercely opposed by Brexit supporters because continuing to abide by the rules of the customs union would continue to restrict Britain’s ability to pursue an independent international trade policy.
EU rules bar members of the customs union from striking bilateral trade deals.
It would make Dr Fox’s job all-but redundant.
He is set to open trade talks with the US later this month.
The battle over the customs union could become one of the biggest dividing lines over Brexit.
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Last month The Sun revealed how he won a Cabinet battle to get a Trade Bill included in the Queen’s Speech - enabling Britain to conduct its own independent trade policy. And a new Customs Bill will allow the Government to collect tariffs from imports.
A source at the Department for International Trade said the Treasury had not asked for a report assessing the benefits of free trade agreements with non-EU countries.