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Liam Fox draws fresh Brexit battle lines with Chancellor over timeline for transition deal after Brexit

It is the latest rift to open up between Dr Fox and Mr Hammond after the Chancellor launched a power grab over Britain’s post-Brexit trade policy

CABINET splits over Brexit deepened yesterday as International Trade Secretary Dr Liam Fox said he only backed a transition period of “a few months”.

This puts him at odds with Cabinet rivals Philip Hammond and David Davis.

 Cabinet splits over Brexit deepened yesterday as International Trade Secretary Dr Liam Fox said he only backed a transition period of 'a few months'
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Cabinet splits over Brexit deepened yesterday as International Trade Secretary Dr Liam Fox said he only backed a transition period of 'a few months'Credit: Getty Images

The Chancellor wants to keep existing trade arrangements with the EU for at least four years to avoid a “cliff edge” while the Brexit Secretary says it should be up to three years.

But this would make Dr Fox all-but redundant because Britain is barred from signing new trade deals until we quit the customs union. Last year he warned that entering into a transitional period would risk “diminishing” the will of the British people in the referendum.

Asked about the issue yesterday, Dr Fox said: “If we have to wait a few months to get full implementation as the price for keeping stability, then I would be very happy to do that.”

The Brexit-backing International Trade Secretary admitted the Government was under “time pressure to get a negotiation done” by March 2019 so was looking at “some kind of bridging mechanism” to smooth Britain’s EU departure.

It is the latest rift to open up between Dr Fox and Mr Hammond after the Chancellor launched a power grab 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.

The Chancellor, Philip Hammond, wants to keep existing trade arrangements with the EU for at least four years to avoid a 'cliff edge'
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The Chancellor, Philip Hammond, wants to keep existing trade arrangements with the EU for at least four years to avoid a 'cliff edge'Credit: PA:Press Association

It was 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.

And last week Mr Hammond enraged his Brexit-backing MPs by warning it could take years to cash in on ties outside the EU.

Brexit Secretary, David Davis, says trade transition should be up to three years
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Brexit Secretary, David Davis, says trade deal transition should be up to three yearsCredit: AP:Associated Press

He said it would be “madness not to seek to have the closest possible arrangements” with Brussels.

And he insisted replicating current arrangements with Brussels was more important than striking trade deals with the rest of the world.

It came after he said a transition period of four years or longer was a possibility that “remains to be negotiated”.

Mr Hammond added: “We are leaving the European Union but when you buy a house you don’t necessarily move all your furniture in on the first day you buy it. This is a process.

“We will do that via process so we will avoid cliff edges and disruption to business, disruption to the lives of citizens. That is in everybody’s interests.

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