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TRADE DEMANDS

Countries including South Korea and Chile preparing to demand concessions from Britain in return for rolling over EU trade deals

Chile and South Korea have already objected to their agreements automatically being applied after March 2019

COUNTRIES are to bombard Britain with demands for concessions in return for rolling over their EU trade deals.

South Korea and Chile have already objected to their agreements being automatically applied to the UK after March 2019, whilst Australia is readying protests.

 South Korea and Chile have objected to their free trade agreements automatically rolling over when Britain leaves the EU
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South Korea and Chile have objected to their free trade agreements automatically rolling over when Britain leaves the EUCredit: Getty - Contributor

The setback will come as a shock to the Government, which believed the continuation of over 70 FTAs would be easy to achieve.

Last month trade minister Greg Hands announced: “None of the 70 plus countries engaged has objected to transitioning their existing EU agreement to a UK one.”

But EU diplomats have been warned by their deputy negotiator Sabine Weyand that the three countries have already queried such an arrangement and others could follow suit.

Lawyers have confirmed that Britain will fall out of all the EU’s international agreements when it formally exits the bloc.

 Trade minister Greg Hands said none of the countries that they have agreements with had made any objections
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Trade minister Greg Hands said none of the countries that they have agreements with had made any objectionsCredit: AFP or licensors

A transition pact on customs is being stitched up that would mean the UK has to continue accepting the terms of those deals for at least two years.

However, it will not be automatically entitled to the benefits meaning rollover agreements have to be sealed with all the EU’s partners.

The fudge means Britain could end up having to import goods from third countries tariff free, but being subjected to WTO terms when exporting to those same states.

Last week Michel Barnier warned: “We cannot ensure in Article 50 that the UK keeps the benefits for these international agreements.

“Our partners around the world may have their own views on this for instance the 70 countries covered by trade deals.”

Theresa May says Britain can get the Brexit deal it wants and a possible free trade deal with China
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