tv Brexit Secretary Remains Optimistic About EU Trade Deal CSPAN September 1, 2017 5:51pm-6:54pm EDT
votes in thet next will likely happen week. at 3:00te will gavel in eastern. senators will continue a judicial nomination for the district of columbia. you can watch the senate live on c-span2. announcer: next, a conversation on brexit and the u.s.-u.k. relationship with david davis, british secretary of state for exiting the european union. this is a little less than an hour. >> well, what a behaved crowd.
good morning, i am the executive vice president of the u.s. chamber of commerce, in charge of international affairs. on behalf of the u.s. chamber of delighted toare host the u.s. secretary of state for exiting the european union, david davis, give him a round of applause. i know, secretary davis this is your first visit back to washington in some time. it is an interesting time on both sides of the atlantic. here we have our unique set of interesting and complex challenges which will not be discussed at today's discussion. an are coming off interesting round of negotiations with your
counterpart in europe as well. i know there are a lot of business leaders but there are also diplomats from different industries in washington. i want to recognize one diplomat in particular. embassy whohe u.k. has done a great job representing your country in washington dc. now, it is an unusual occurrence, someone said on their way in, this is the first time in 25 years i've worn a tie on a friday before labor day. reflection onh a the importance of the talks going on in europe and the importance of our guest that we beforefull house the day labor day weekend. toward thek ticks
two-year deadline for the united kingdom to exit the european union, we know, secretary davis, you will be talking about the road ahead and how you look for to a more nimble and innovative british society going forward. here in the room we have partners in that endeavor. we have a huge stake in the transatlantic relationship. not just a commercial terms with the united states and europe account for 53% of gdp. we have an overall $5.5 billion trade and investment relationship. the relationship is a lot deeper than numbers. if you think about the history of your and the united states -- history of europe and the united
states fighting world war ii together and spreading the values of democracy and the rule of law around the world, the heart of this special relationship is the one between the united states and the u.k. i could talk about a lot of the physics. statistics. trade andion investment between our two countries counts for millions of jobs. today 42,000 american firms outort to the u.k. and ab 3500 have operations in the u.k. embark on this journey, it is important that the united
states business community and our government closely work hand-in-hand to help you achieve your goals and aspirations. we clearly have a stake in the outcome. that is why the chamber found the u.s.-u.k. business council to work not only to strengthen the relationship between the u.k. and the u.s., but also look at the work of the brexit area. we have three simple objectives. we are very pleased that he is one of the leaders and has become chair of this u.k. council. towant the eu and the u.k. build a foundation for ongoing
cooperation and we want to encourage you to ensure a clear transition period. clarity on the way for in terms of minimizing business disruption and encourage both sides to understand the to.sequences of failure you're a good deal. deal.ure to get a good american companies have a huge anditment to your country we know these will not be easy negotiations between the u.k. and the e.u. there are critics out there talking about the visions and unrealistic approaches. we also know there is another
response to that. that is to get to work and make can the e.u. and the u.k. move forward. we are eager to hear from you about how we can be helpful in our work here in the united states and in europe. we are eager to hear more about how the u.k. will deal with the flow of workers and data across borders. want to hear more about intellectual property rights cooperation. and tradebout customs facilitation, issues i know are very much on your agenda. oure is a paper outlining views on these issues. which we will share with you. the negotiations are going to be tough and had their ups and downs.
see a similarity in what the united states faces in the nafta talks. we have encouraged our administration and our partners in mexico and canada to do no harm. to recognize the tremendous if --benefits of the relationship. the stakes are high but our commitment to you and your government is we are very supportive of the special relationship the two countries have. of me lead to a introduction secretary devos. he was appointed secretary of state for exiting the european union. district ins a northeast england.
he has held an array of government position including science minister and shadow home secretary. before being elected, he worked in the food industry. if you look at the totality of his background, he is a good person to make sure the u.k. interests are well guarded in this negotiation. in his time in the reserves, secretary devos had a few broken fews --secretary dvis had a broken noses on occasion. , welcome to a committee very supportive of the u.s.-u.k. relation.
>> thank you for this generous comments. good morning to you all. fan of the-standing united states. you are the only country to be successfully founded on an idea, the idea of freedom and democracy put together. it is such a privilege to be here. the last time i was in the they -- the last time i gave a major was inin the states texas. now of course facing a devastating natural disaster. the people in the united states and the united kingdom are one
in the same. we have stood side-by-side through tough times, through world wars, through terrorism, through natural disasters area a. as always, britain has remained a friend. our thoughts and prayers are with the american people and all those suffering during the current tragedy. frome just flown in brussels where we have been busy with each other negotiation over our departure from the european union. our goal is to achieve a successful future partnership with the european union. one that delivers a seamless and frictionless trade as much as possible.
i said to my european seeserpart, the optimist opportunity in every difficulty. i am a determined optimist in this. fundamentally, i believe that a good deal is in both the interest of the 19 and the european union and the in -- of the united kingdom and the european union. many want clarity over our approach. you, the businesspeople, you don't start a negotiation knowing the exact conclusion. customs,as diverse as
data, all those things, we have begun to navigate our way towards the and i am confident rwards them. i want to step away from the details for a moment and look beyond the next few years. outside thel be european union. we can tackle the greatest social and economic challenges offace in this era globalization. questions for these is to not become isolationist. the economic problems of the
west cannot be to turn our back on globalization. instantly the world for once again. worlds to lead the forward once again. economies inop our areas where we have a disadvantage. this is the great prize we can win from brexit. we can strike new trade agreements across the globe, including with the european union. is tem in which mperate and logical. fifth largestld's economy.
achieving this will not be easy. need global businesses to global goaleve our s. sitting in this room. pedt invention has hel saved the lives of billions of people. i usually get the answer antibiotics or medical technology, the real answer is free-trade and capitalism. free-trade has delivered an unrivaled increase in prosperity
across the globe. it has raised more people out of poverty been any or all of government initiatives put together. undergoing anis extraordinary period of economic change. new technology is producing new forms of production and disrupting others. it is necessary to make the case for free trade and capitalism. for me here in the united states is the logical place to make that case. the united states is the crucible of the modern technological revolution. it is here in america where we have seen some of the most dramatic advancements in technology. often this is happening in partnership with companies and research centers based in the u.k.
our countries are great collaborators, pushing the boundaries of research. ofhave the greatest number in ourrize winners country than any other nations. englandhe northeast of that drove the industrial revolution. it was free-trade as much as the technological change they created the way for globalization. free trade helps spread that technology beyond europe. it's a written from being a economyd largely rural at the end of the 18th century to a largely industrial one at the end of the 19th century. ofthis country, the era
carnegie and j.p. morgan. trade across the globe allowed food thatus on the were the most successful court manufacture -- for manufacture. percent of people work in agriculture. makeup of the social our countries. society that is unequivocally better off. we as seen a shift in production, of manufactured goods from west to east. in 1990, less than 3% of the world manufacturing was made in
china. now it is just under 25%. change may feel like a threat and there are good reasons to believe globalization is not working for everyone. sluggish productivity growth has left wages falling for many in the u.k. and the u.s. the u.k. and the u.s. has for a long time spent more than we saved, meaning we have to borrow from abroad to cover the shortfall. the response of the international community has been to reduce rather than intensify cooperation and trade. reported ahe
rise in protectionism. we have seen examples of countries failing to play by the rules, intern providing risk for global systems. risk forn providing global systems. to remove excess has not been done. us the dangerwed of protectionism. it damages global trade. barriers inhibit global and domestic growth. it is through free-trade that we can deliver stable growth to our economy. way toy sustainable deliver better public services
is by boosting productivity. this means more trade, not less. for britain, it means maintaining our strong trade links with european mo arkets and seeking out new opportunities for trade and investment with a new and old friends alike. secretaryy our trade with here in july. tradench the u.s.-u.k. working group. at home, britain will remain opento the town, ideas -- ideas, we willnd create an economy that works for all. anwill open markets
open tradethe system. part of that will be the liberation of the service sector. gives us the potential to revitalize productivity and growth. we must work together to convince other countries of the benefits. has an important role to play in finding solutions that help share the benefits of globalization. at the same time, delivering a global economy that works better for all citizens.
are outside the european union, we will push harder by spearheading the movement to open up trade and boost productivity. opening service markets also brings another benefit. as the governor of the bank of england said, liberalization of services is one of the reasons for our trade deficit with the rest of the world. history has taught us that large, access to trade imbalances can be damaging for the entire global economy. these imbalances or a contributor to the financial crisis of 2007. surplus countries save vast amounts of money and this surplus came to the west.
thingsws people to buy they cannot afford. excess balances still exist. i want to visit commitment to create a international byporation to be met international cooperation on standards. outcompete emerging economies with cheap labor. there is no future in trying to be cheaper than china or other emerging economies who had enormous low-wage cost advantages. tocannot do very much regulate this advantage with less regulation. after we leave the european
union, we will not be engaging in a regulatory rate to the bottom. to the latory race bottom. an independent britain after brexit gives us a chance to race to the top for quality and standards across the globe. focusing on high-quality, high innovation, where the developed world can compete. we can compete to the benefits of workers. build trust between different companies in different countries. they can help develop better products. industry, ane industry where the safety of the consumer is paramount.
the european union has developed a standard for all new cars being registered in north america, europe and many other countries globally. standards to protect the environment. international civil aviation organization was to agree on regulations on aviation. in 2020, there will be a new global benchmark for aerospace technology. innovation,p drive promote the upside of new technology and energy. they can benefit our technology. they can help spread the new technology such as autonomous vehicles, electric cars and smart technologies. we are going to have to create a
whole new level of standard where both our economies do minate. towe are going to try prevent people from creating their own standard of barrier. the u.k. has an outstanding record for promoting standards internationally. driving up standards around the globe, helping out workers and companies to compete in the new aonomy and help us to build country ready to compete in the modern world. of international cooperation where countries like the u.s. and the u.k. provide
leadership. britain cooperating with our friends and allies to drop of standards around the world. standards around the world. britain is liberal and international. thank you very much. [applause] i will take questions and please do not restrict yourself to brexit. know you i can, you whaot walk around telling t you are going to do. questions, i could not
you on thewith importance of services in the global economy. have you had any success with talking to this administration which focuses on goods? the foundationnk will be laid in your relations with the eu so we can think about the timing of serious negotiations on that? need working hard on the to get the services as they should. theoretically, we share a common language, it should be easy. he has been working on it. -- i a natural and politic
n politics to ignore the obvious. we are working on that. u.s.-u.k., i suspect at the end of the day, the limiting .actor will be when we conclude a piece ofd by european law called a duty of sincere cooperation. cannoteans what we do undermine anything european union is doing. restricted in are the extent that we can negotiate. the restriction reduces
influence. one aspect here, which is what appens if we end up with we would notase, have a implementation of force because that would be building a loophole in the european external tariff barrier. withis not out of line what would be the timetable anyway. between us we are big complex economies. you would expect the deal we do to be quite long. sit?there, -- sir? >> thank you, thank you for your
great presentation. two questions related to current european politics. you served a government that was form at to be able to new government. how long will the current government last and are you certain prime minister may will be able to write the final chapter in brexit? another great lady of europe will be in the news soon, chancellor merkel is heading for a big election in germany. how will her reelection presumably enhance the brexit negotiations? gizzy, chief political
correspondent with newsmax. >> my expectation is the government will last the five years, we have changed our structures. used to the the prime minister would call the election whenever they would like. in terms of the brexit hastiation, your profession great fun on the politics of brexit. the real issue on brexit is practical, what kind of deal do we need? is the the driver and it same driver in the parliamentary arithmetic. it will get done in time. merkel, we are very
careful, government ministers, on commenting on other politics while abroad. the primary effects of the german election on the brexit process is timing. inis going to happen september but normally after a 1-3an election it takes coalition.orm a new it is a new government. europe,he politics of germany is important. is the biggest country in economic terms, and population terms, it is hard to overestimate the influence. the outcome of the german election, i'm not going to get
what it will be. guessm not going to publicly what it is going to be. the effect of the german election will be to accelerate the process once it happens. here andyou for being for your noteworthy remarks on trade. thank you for your leadership on this issue. equalse that trade better lives for more people. trade, hundreds of millions of containers go between the channel carrying goods, fresh fruit, produce, fast-moving consumer goods, the change, standards would
which would create additional cost, not just for the countries in this room and the u.k. and the eu but mom and dad in communities. i know you have not had the pleasure to get into the weeds that deep but i would welcome your thoughts on the mechanics. thehose not familiar witht arcane era of sanitary standards, it is one of the major issues in border trade post departure. context, looking at trade with the european union, you would trade into britain outside the tariff area.
of containers are cleared in 5 seconds. am going toeeting i the canadian border. fructose sell high syrup across the border. the sanitation. we have to do a great deal of not to make sure there is a parallel but identical standard area the way we are approaching andnegotiation parliamentary terms, we are assuring that in leslie deliver we choose not to, every standard will bey exists, it
standards of british pro ducts the day after we leave. parliament,back to we will look at the great repeal bill which is the great continuity bill. we had a unique aspect of this trade deal with the european union. we start with our standard as exactly the same place as everybody else. there is no need to spend several years getting the standards in line. we know exactly what they are and we know them well. we are acutely conscious of it. area is going to be the most complex.
which will bee manageable. i will probably i am required, i'm afraid, to take them from the press as well. wit --r: ralph kercher ralph carter with fedex. following with the question on customs, i read one of the witht papers you mentioned the vision for the longer term of customs relations. i think you made two proposals. one would establish customs regime controls between the u.k. and eight that you -- and the eu.
the second proposal was trying to track and trace goods that came from the u.k. under other customs regimes. could you talk about that second proposal and how it would work? sec. davis: you just asked a question that is subject for a whole new speech. what the gentleman has asked is that we published a paper about the possible customs regimes. we put out one proposal, which is a very practical proposal. it is all about facilitating, using automatic number plate recognition on vehicles crossing the border. it is about using authorized economic operators or trusted traders. those sorts of things, to practically make the burden of crossing the border between the it cand the eu as low as
possibly be. that will be doable if we have struck a three trade agreement, which is essentially nontariff, because then you really have to stop at the borders for regulatory inspections and rural espport and expections -- rul of origin inspections. the other approach is a blue sky approach. like a customs union, but we virtually control everything coming in. if you sell it to britain, you get your tariff zeroed or getting back to you, whatever. but if you are going to export it to britain for onward sale in the european union, you pay a next will tariff when you come in -- a next little terror of when you come in.
tarriffal when you come in. it does happen minister of burden -- have an administrative burden. you have to attract the product and know where it is going. that is how it works. .t was a blue sky idea i think what is most likely is the first one, not a second. my minister spent time tearing his hair out, following the various practical changes. that's how wide we are going in terms of imaginative options. it is not just true for customs. it is true for a whole series of other areas. let me take a last one from the room before we go to the media. davis.k you, secretary
i am the ambassador of iceland. seriously you how have thought about using the european free trade association and the economic area agreement as a mechanism, in other words, where you have to work out all the details, completely leaving the internal market? sec. davis: we have thought about it. -- of the great arguments none of you would have followed it in the detail i have -- but one of the arguments taking place is how much transition will be have. how will we avoid a cliff? this transition. then, people tend to think single -- this transition p
eriod, people tend to think single things. it is different if you are in a bank than if you are reducing agri products or if you are working in a regime which is heavily regulated, maybe cars or whatever. or maybe you've got cross-border traffic going backwards and forwards. the first thing to say is that the nature of the implementation. then, or the transition period, is not as clear-cut as people say, or people think in the beginning. using --of the idea of
the countries of norway and switzerland have different relationships through an arrangement. it has its own negotiating issue take it over. get over. over -- to this is probably the most complicated negotiation in history, and our enemy, in a way, is time. we will conclude the negotiations in two years, and the reason for the transition is to give us more time for practicalities, to allow us to build a regulatory regime, to allow businesses to change their way of doing business to cope with the outcome, and so on. those are the sorts of reasons, and it's not, at this stage, clear enough to know what the transition would look like. but adding another phase of negotiation would not necessarily help that.
we have thought about it. i promised to take questions from journalists. i am trying to see which table they are at. there we are. reporter: bbc news. couldary, i wonder if you address the issue of the current impasse, the forced settlement. -- on the divorce settlement. for what is the chance of the government paying money in the transition. , in order to -- the transition pope know, in order to unblock the talks? is that something you would consider? welcomedo you feel more in this town then you ever would in brussels? [laughter] sec. davis: i will answer the second one first.
it is more fun. this is not the first time i have negotiated in brussels. you would have no reason to know, but basically, in kurdish political terms, my second name is lazarus -- british political terms, my second name is lazarus. before, i was europe minister. at the end of a long negotiation, the british press tried to get all the other players in the negotiation to say something to splicing about me. they found they cannot get it, because actually i take the view that there is no reason not to be friends. eventually, they did get one of my fellow negotiators to comment on me, to give a comment on me.
the financial times got him to say something. they said, well, david is a master of constructive obstruction. he is a charming bastard. [laughter] sec. davis: the headline was "charming bastard." i was proud of it, because i have to be both charming and sometimes difficult. there will be tough times. the trick of this is to remember the end of it. when we want an outcome which is in everybody's interest, this is not a zero-sum game. the world know that outside thinks negotiation is all about the kids know -- much machismo. --
we are the biggest military power in europe. we are the biggest in terms of spending on national development. we are very important in counterterrorism. we are the biggest intelligence power in europe. we are a cyber superpower like you. there are lots of things. we want to stay friends. that is the first thing to guarantee. to your second question, i will not do the negotiation from the lectern, but what is going on is we have gotten to the point today where there has been some pressure in the last couple re over theessu question of if we pay a divorce bill, and if so, what it is. around.e stories flying i can't comment because we have not started that negotiation, but let me say this. complexa very
negotiation on transition alone, and when we come to that, we will have questions to deal with in financial terms, i'm sure, as well. but it is an idea that is being floated around. that has been is that the european negotiators are trying to say, well, we should settle the financials first and trade and other things later. is goat we would be doing through it line by line. we've got very good lawyers. , but itting a bit tense is in the early stages.
nothing in, nothing out. reporter: hello. sky news. in the interest of being friends, which you just highlighted, do you think blackmail is an appropriate word to describe the eu's approach to brexit negotiations? sec. davis: i know what you are doing. i never comment on our views on these things. look, we are in a difficult and negotiation.cated i have sent from the beginning it will be turbulent. what we are having at the beginning is the first ripple, and there will be many more along the way, at least the first half of my financial times description, the charming bit. who is that from "politico? " sorry, i don't know. reporter: katie o'donnell.
two questions. it was made pretty clear that the u.k. won't be able to cherry pick advantages of being in the eu without being a member. how will you sell that to u.k. voters, that they will have to lose benefits? in terms of special relationship , you talked about how the u.k. anti-e.u. will team up -- the u.k. and the eu will team up, but isn't the u.k. kind of less useful to the u.s. now that it does not have a seat at the table in brussels? sec. davis: first thing, in negotiations we have pejorative terms. i could give you a list of things the european union is doing and say that is cherry picking, but i have sort of told the british parliament they are going to be astonished by my politeness in the next two years, because there is no point tit-for-tatnto a exchange.
it is not the way to do it. in terms of the outcome at the end, what they want to see is a free trade agreement. people say, how can you do that in two years? i go back to the point i made to the gentleman over here, which is that we are already at a point where our standards are identical to the ones of the european union. we helped set some of them. that is straightforward in terms of free trade agreement. matt remind you remind you of the other way around, not just the british population. we sell -- the last numbers we have, the last audited numbers for trade in the european union, we sell 230 billion euros, big dollars, to them. they sell 290 billion to us. who's got the interest in the free trade agreement in this? us, or them? the answer is, of course, both,
and there are parts of europe which are very concerned about containing a free trade agreement. it could have a big impact on all the people in the north sea -- france, belgium, holland, denmark. rotterdam, one of the biggest container ports in the world, is going to be very concerned if we have a decent free trade agreement. it's not about cherry picking. it's about doing what's best for brussels. the u.s. special relationship, people talking it out and talk it down over the years. , as ithing, we start with said when i started the speech, i am proud to be here because this country is a country based on a fabulous idea. your founding fathers were incredibly judicious geniuses in designing a constitution for a country.
their job is made slightly that theythe fact picked off parts of our constitution to do that. we have similar arrangements. we have a convoy -- a common way of looking at things. we have spectacular cooperation on military matters, on intelligence matters, and we are huge trading partners to each other, and we are the two biggest powers in global financial services together. if the french ambassador is in the room, i apologize, but financial services internationally is essentially an english-speaking trade. why? because of new york and london. we have fantastic things to hold us together and draws together, and continue to draws together. 20 years ago, you might have thought that the reasons for holding us together have gone away. that is not true anymore.
we know that we still have natural disasters. we know these things are all massively important, and we are better at dealing with them together than we are separately. so it does not matter what people say. we've got the best bond between two countries that any two countries in the modern world have got. ,e are allies, we are friends we are people with a common two majorem, we are upholders of our view of how a civilized country should operate . for that reason alone, i am proud to be here today. thank you very much. [applause] >> i think that was a very fitting way to end an intriguing
session. that the u.k. has, for us, always had a very special role in pulling the rest of europe forward when it came to market globalization to setting the right rules and standards, with the united states on counterterrorism, on security issues. , in this want transition, to lose that role the u.k. as with the united states. you are a vision about the future role that the u.k. will stake out in developing open markets and fighting against protectionism and supporting trade flows and encouraging greater globalization of services and supporting innovation, and in many other areas, it is encouraging for all of us. as you can see, the questions, which could have gone for
another couple of hours, it is all in the details. while we support your broadvision, we also want to be partners with you to make sure that our interests are well represented in those details. expect that the u.s.-u.k. business council will continue to knock on your door. we have lots of papers and lots of member interests, and recognize behind that u.k. council is not just the u.s. chamber of commerce, the largest is this organization in this country, but the business members that are invested in doing is miss in your country -- doing business in your country, and will be there in the aftermath of this two-year period. good luck with your implementation, and remember the secretary fox chose u.s. chamber for his first visit in washington. you chose your first visit. secretary fox came back, therefore you must come back and
keep us updated on your progress . congratulations. thank you very much. [applause] [captions copyright national cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] announcer: tonight, a look at the impact of digital technology on education in the u.s., including google's chief education of alan -- evangelist in the present of arizona state university. >> this is the first generation that does not know what the world look like before google. they did not know what the world looks like before the internet. they are going to have a of whatt expectation the world looks like, but more importantly what they can do with technology. born before 2000 is a homo sapien.
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