SKIP TO MAIN CONTENT

UK lacks trade negotiators for Brexit

While the process to find a successor to Prime Minister David Cameron continues, concerns have been raised about Britain's lack of trade negotiators.

3 min read

Published

Source: AAP


Skip to article content

Britain will have to ask "friendly governments" to provide some of the trade negotiators it lacks as it starts the process of extricating itself from the European Union, senior figures believe.

The acknowledgement underlined the extent to which the government was wrongfooted by last month's referendum to sever ties with the EU, a process fraught with uncertainty for businesses and investors.

Foreign Secretary Philip Hammond said on Thursday it would be a mistake to start immediate divorce proceedings with the EU, partly because a successor to Prime Minister David Cameron will not be in place until the results of a vote to replace him are revealed on September 9.

Conservative MPs were holding a second round of voting on Thursday to select the final two candidates for that ballot.

"For the moment we are not in a position to begin substantive negotiations immediately and therefore it would be unwise to start the process ticking by triggering Article 50," Hammond said, referring to the legal clause that would launch the process of withdrawing from the 28-nation bloc.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

"The government will have to acquire additional trade negotiation resources ... We will look to friendly governments to assist us, as well as seeking to hire the best resources available on the open market," Hammond told a committee of MPs. He added it was unlikely the government would have a large budget to do so.

Hammond was speaking as Conservative leadership hopefuls Theresa May, Andrea Leadsom and Michael Gove awaited the outcome of the second ballot of MPs, which will decide which two of them should face off in the race for prime minister.

Cameron has said he stepped down after voters, many of them swayed by concerns over high immigration and a desire to reclaim 'independence' from Brussels, rejected his entreaties to keep Britain in the EU and his warnings that leaving would spell economic disaster.

Investor concerns about the impact of 'Brexit' have mounted in recent days, with asset managers suspending trading in commercial property funds worth billions of pounds after too many people rushed to withdraw their money at once.

The pound sterling steadied on Thursday after two nervous days drove it below $1.30 for the first time in more than three decades.

Interior minister May, who has emphasised her experience in one of the toughest portfolios in government, is seen as the front-runner among the leadership candidates.

In a first round of voting on Tuesday, she had the support of half of the parliamentary party, leading Leadsom, a junior energy minister, and justice minister Gove.


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world