Brexit explosion: City on brink of trade revolution – UK eyes mega-deals with NINE nations

BREXIT Britain could be set for a huge boost as the Treasury works to secure the City of London with more ambitious trade ties outside the European Union, with up to nine financial powerhouses in the UK's sights.

Brexit: Expert discusses 'importance' of UK financial services

The UK completed its full departure from the European Union at the end of last year, ending 47 years of membership following the agreement of an 11th-hour trade deal after months of tense and often bitter talks. But financial services was largely bypassed in negotiations between the two sides, with rows intensifying about the City of London's access to lucrative markets throughout the EU after Brexit. This has led to fears many global financial institutions with a significant presence in the Square Mile would be forced to move bases elsewhere in the continent.

But in a major boost, City Minister John Glen, who is also Secretary to the Treasury, said the UK will pursue “deeper dialogue” on financial services with a number of trading partners, including the US, Australia, Japan, Switzerland, Singapore and China.

He insisted the move would ultimately help the Square Mile “thrive outside the EU”.

Mr Glen told the City Week conference in London: “When it comes to developing a more open industry, we've been working hard seeking new international financial services agreements.

“We've already signed a number and we're continuing the financial services dialogues with other countries, including the US, New Zealand, Australia, Japan, Switzerland, Singapore, China, India and Brazil.”

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Brexit news: The Treasury is aiming to secure the City with more ambitious trade ties outside the EU (Image: GETTY)

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Brexit news: Boris Johnson celebrates signing the trade deal with the EU (Image: GETTY)

He added: “It's often about a deeper dialogue, it's actually looking at mutual recognition agreements and indeed, as we have with Switzerland, we're pursuing an extremely ambitious agreement.”

Following Brexit, the EU trading bloc has only granted the City of London improved access in a small handful of equivalence decisions.

Mutual recognition, which is where countries agree each other's rules are up to the required levels, has proved a major stumbling block in negotiations between the UK and EU over recent months.

Earlier this year, Britain and Switzerland opened talks over a mutual recognition agreement to reduce hurdles for access to each other's markets.

READ MORE: Brexit LIVE: Fury as UK forced to obey 300 EU rules

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Brexit news: Financial services was largely bypassed in trade talks between the UK and EU (Image: GETTY)

Mr Glen said: “While openness means deepening international relations, we think it also means improving our own domestic competitiveness too so that we can take full advantage of our new position on the world stage.

"And that means creating the right conditions for industry to thrive outside the EU.”

In the latest free trade boost announced last week, the UK and Australia announced an agreement between the two countries that will see Brexit Britain enjoy improved financial services relationships.

The deal has received widespread praise from financial experts, with TheCityUK hailing the FTA as showing “real ambition to improve global services trade” and showing the UK can “negotiate real commercial benefits”.

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Brexit news: The stance from the EU on financial services has frustrated the City of London (Image: GETTY)

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Brexit news: Australian Prime Minister Scott Morrison with Boris Johnson at 10 Downing Street last week (Image: GETTY)

The lobby group said service account for four-fifths of the UK economy, with the UK-Australia deal "setting a new global standard for trade in services and delivering real improvements to the framework for financial and related professional services trade between the two countries, critical to meeting shared objectives for a post-pandemic and sustainable recovery".

TheCityUK added the new agreement "will help to build on the £5.4billion of UK services exports to Australia, making up 55.8 percent of total UK exports to the country, which will be a core driver of new high-value sustainable jobs in both countries".

But Mr Glen has urged caution and warned: “We've got a regulatory co-operation annex in the UK-Australia free trade agreement.

"That needs more work so that we can actually get to the destination we ultimately want to get to.

“That involves a lot more dialogue than can be achieved in a simple handshake moment.”

Britain is also set to open talks with Brazil later this year, and has made financial services a key element of its proposed trade deal with India.

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