Brexit News for Sunday 29th January

Brexit News for Sunday 29th January

Theresa May secures a multi-billion pound fighter jet deal with Turkey

Theresa May has announced new trade talks between Britain and Turkey that could generate billions more pounds for their economies after Brexit. Jetting into the country just hours after seeing Mr Trump, the Prime Minister announced a new trade working group with Turkey – joining 13 other nations already in talks with the UK. She announced a multi-million pound defence deal to build a new generation of Turkish fighter jets that had been stalled for months. – The Sunday Telegraph

  • Theresa May is taking Brexit into a brave new world – The Sunday Telegraph Editorial
  • It makes sense for Theresa May to cosy up to Turkey’s authoritarian ruler Erdogan – John Rentoul for The Independent
  • Be bold, Prime Minister – visiting Ankara is the right thing to do – Nick de Bois MP for ConservativeHome

…as Britain is set to sign three major trade deals after leaving the EU, report reveals

Britain is in line to sign THREE major trade deals within 12 months of leaving the European Union, a new report says. South Korea, United States and Brazil could strike free trade agreements with the UK before 2020. International Trade Secretary Liam Fox has been urged to put the three countries at the front of the queue for talks. The welcome boost for post-Brexit negotiations have been issued by former Treasury official in a new report. Ex-government adviser Matthew Oakley has published a Trade Prospects Index revealing the government should prioritise pursuing talks with specific countries. – The Sun on Sunday

Labour MPs table Commons motion to throw out Government’s Brexit bill

Labour MPs have put forward a Commons motion to throw out a Government bill which would pave the way for Britain to leave the European Union. Lewisham MP Heidi Alexander, who resigned from the shadow cabinet in June, has tabled an amendment with the support of 18 backbenchers which could see the bill scrapped. – Evening Standard

  • I cannot sign up to Britain leaving the EU and single market unconditionally – Heidi Alexander MP for the Huffington Post
  • Labour MP Jo Stevens quits shadow cabinet over article 50 vote – The Guardian
  • Grassroots Labour supporters revolt against Jeremy Corbyn over Brexit – The Observer

Tory rebellion over Article 50 Bill: MPs demand White Paper before they vote through start of Brexit

Theresa May is facing a rebellion from Tory MPs over her refusal to publish a Brexit plan before a vote on starting talks, The Telegraph can reveal. Pro-European Tories have warned that if the Government wants MPs to green-light the start of negotiations they need to publish a “White Paper” on what they want. Dominic Grieve, the former attorney general, told this newspaper it was of the “utmost importance” that a plan is laid within the next fortnight. Several other Tories are understood to support his position, with one saying a written plan is needed “as soon as possible” so MPs can interrogate the Government’s Brexit priorities. – The Sunday Telegraph

Brexit can boost business and public should ‘buy British’, Labour deputy says

Tom Watson said the UK should respond to US president Donald Trump’s “buy American” mantra with its own “buy British” policy. In a speech to the Co-operative Party Economic Conference in London, Labour’s deputy said Brexit will free up the Government to favour British goods. The deputy leader highlighted how the international trading agreements Mr Trump is ripping up have also been opposed by unions because they stop countries from protecting workers. Attacking the “chattering classes” for their “sneering derision” over calls to buy British, he insisted significant opportunities to boost business will be opened up when the country is no longer bound by European Union red tape. – ITV News

Bank of England to upgrade growth forecast again

The Bank of England will upgrade its growth forecasts for the second time in three months this week as the economy continues to defy expectations of a post-Brexit vote slowdown. Liz Martins, an economist at HSBC, expects the Bank’s 2017 growth forecast to rise to 1.7pc, from 1.4pc in November and just 0.8pc in August. “Compared to the Bank’s initial post-referendum [forecast], this is a decidedly more upbeat picture,” she said. The Monetary Policy Committee is expected to leave its growth forecast for 2018 at 1.5pc, with 1.6pc for 2019. Economists expect inflation to rise well above 2pc this year as the fall in the pound’s value pushes up import prices and consumer costs. – The Sunday Telegraph

Donald Trump and Theresa May agree immediate talks on post-Brexit trade deal

The UK and the US will begin work immediately on a new negotiating pact to pave the way for a full trade deal to come into force after Brexit. The announcement, which will raise eyebrows in Brussels, follows Theresa May’s visit to the White House in which she and Donald Trump agreed to deepen relations. Giving new details about the visit, Downing Street said the story behind pictures of the pair arm-in-arm is that Mr Trump offered his hand to Ms May in a “chivalrous gesture” to help her down a ramp. It also emerged Mr Trump said he wanted Ms May to be the first person he sees when he arrives on a state visit to see the Queen, and that he told an official to store away the White House menu card for their lunch together as a memento of their meeting. – The Independent

Brexit is opportunity to pull Europe closer together, EU’s top negotiator Guy Verhofstadt says

Britain’s decision to make a clean break from the EU was an opportunity to reform Europe and avoid a further breakdown in ties between its remaining member states,the European Union Parliament’s chief Brexit negotiator said on Monday. Guy Verhofstadt, former Belgian Prime Minister and member of the European Parliament, also said the election of US President Donald Trump, and what he views as Washington’s move toward more protectionism, was a wake-up call for the EU. “The Brexit discussion is a good opportunity not only to discuss and negotiate a new agreement, a new partnership with Britain, but also to fix that now it is time to have a real government in Europe,” Mr Verhofstadt said in an interview in New York while promoting his new book: “Europe’s Last Chance.” – The Sunday Telegraph

Britain could strike a ‘Ukraine Plus’ style Brexit deal, says Centre for European Policy.

“A “Ukraine Plus” model, which goes further on free trade and on collaboration regarding security and defence policy, would be in the interests of both the United Kingdom and the EU,” the paper’s authors write. As it stands, the most likely model for Brexit that the UK will follow is that of Canada. At its most basic level, the so-called “Canada-plus” Brexit would likely include many of the characteristics of CETA — Canada and the EU’s trade agreement — such as the removal of the majority of tariffs on goods, excluding certain parts of the UK’s services sector and some food items like eggs and chicken. It would provide extensive access to the single market, but not include the immigration demands and budget contributions required of non-EU members in the European Economic Area like Switzerland and Norway. – Business Insider

Simon Heffer: Britain’s relationship with the United States is not special. But we need it more than ever

We have as a nation decided to leave the European Union. America is our main non-European ally. We are, I hope, on course to rebuild and improve relationships outside Europe and around the world, not least with countries with which we have historic ties of blood, history and culture. America is as much one of those as Canada, India or New Zealand: in terms of raw power it is the most important. Whatever one thinks of its new president , Britain must find common ground with America. Otherwise, we are going to find ourselves distressingly on our own. – Simon Heffer for The Sunday Telegraph

Liam Halligan: At last we can negotiate trade on our terms

Much is made of the 53 free-trade agreements the EU has struck. But these are mainly with tiny countries; the nations involved comprise less than a tenth of global GDP. If the UK can strike a deal with America and China – realistic aims – that would cover a third of the world economy. Consider, also, the trade deals Brussels has struck are far from UK-oriented. The EU’s negotiating approach has long been to “gold plate” agriculture and protect it at all costs. Yet agriculture is just 0.6pc of the UK economy, less than a third that of France. As one of 28, the UK’s requirements when EU-level trade deals are struck – the promotion of trade in services, for instance – have never figured highly. – Liam Halligan for The Sunday Telegraph

Brexit in Brief

  • Labour’s Brexit disarray could lose them Stoke, and open the Ukip floodgates – Simon Heffer for The Sunday Telegraph
  • There is no legal basis for making any extra payments to the EU – John Redwood’s Diary
  • Let’s put co-operatives at the heart of Britain’s economic recovery after Brexit – Jonathan Reynolds MP for LabourList