tv Brexit Secretary Remains Optimistic About EU Trade Deal CSPAN September 4, 2017 12:00am-1:00am EDT
they say this over and over again, you should have a healthy distrust of any political leader, particularly once a claim to be speaking for you. >> then the university of southern california annenberg professor diana winston. much oforporations own the american news media and the digital revolution has meanwhile transformed the economy. networks and daily newspapers no longer set our national agenda. instead, many of us find information niches that reinforce our opinions. polarization seems to have split us into two nations. >> watch on c-span and c-span.org and listen on the free c-span radio app. discussesdavid davis the latest on brexit and the
future of u.s.-u.k. trade relations. this was hosted by the u.s. chamber of commerce and is one hour. >> well, what a behaved crowd. everyone.ng i am the executive vice president of the chamber of commerce. in charge of international affairs. good to see a full repair. on behalf of the u.s. chamber of commerce and the u.s.-u.k. business council, we are delighted to host today. give david davis a round of applause. applause] >> i know, secretary davis, this is your first visit back to washington in a couple years. welcome back.
it is an interesting time on both sides of the atlantic. we have a unique set of complex challenges which will not be the subject of today's discussion. i know you are coming off an interesting round of negotiations. we look forward to hearing from you. in today's crowd, i know there are a lot of business leaders. there are also diplomats from different entities in washington. i also want to recognize one diplomat in particular. from the u.k. embassy. he has done a great job representing his country here in washington. applause] >> now, it is an unusual occurrence. someone said on their way in, you know, it is the first time in 25 years on a friday before labor day. it very muchthat
is a reflection on the importance of what is going on in europe and the importance of our guest. so we have a full house the day before labor day weekend. let me say a few things at the outset. then i will turn to secretary davis for his comments. as the clock ticks toward the the unitedadline for kingdom to exit the european union, secretary davis we know an and your team will carry enormous responsibility on behalf of the british people. i know you'll be talking today about the about ahead and how you look forward to a more double and flexible and andvative british society here in the room you have partners in that and ever. but we clearly have a huge stake in the transatlantic relationship. relationship where and where we 2.5 billion a day
billion .5 relationshipship. is a lot deeper. if you think of the history united states and europe ing the democracies ups the heart is the one between the united states and u.k. say a lot of statistics the lk about the u.k., largest sing the investor and u.k. is the he vent largest trading accounts for de 2 american jobs and rms export to the u.k. and
they have operations in the u.k. underscores a partial this relation shape. em, embargo on this journ it's important that the united states unity and our government work hand-in-hand with you to some or your endeavors, your goals and your aspirations as we clearly have a stake in the outcome of these discussions. which is why the chamber founded the u.s.-u.k. council, one of 15 we now run, to work not only to strengthen the relationship between u.k. in the u.s., but also to look at the work of the brexit areas. we have three simple objectives. i willd begin by saying say more on this topic later. is we are glad mr. rooney
one that has been selected to be chair of this council. of course, we want to encourage you to have predictable transition periods that ensures a strong future partnership going forward. second, we want clarity on the way forward, when you can, in terms of minimizing business and incurs both sides to understand the consequences of failure to do so. a good deal.t
u.k. en the and e.u. d there are strong critics between unrelateic aplompse and response to er that which is to get to work and and the u.k. are able to move forward. to know that we are eeg are to be hearing from you helpful in our work. and datath the workers nd here to hear more about intellectual property rights and and t access for goods financial services and issues, i on your agenda. a paper on these
issues which we will share with secretary davis and your team. the negotiations will be tough will have their ups and downs. similarities what the united states faces. the trump administration has een i think in some ways important and also relevant to your discussion. stakes are high but your commitment to you and your we are nt is that supportive of the special
>> let me turn to an introduction of secretary davis. he was appointed secretary of state for exhibiting exiting the european union. had 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 noses --secretary dvis had a few broken noses on occasion. secretary davis, welcome to a committee very supportive of the u.s.-u.k. relation.
it is such a privilege to be here. the last time i was in the they -- the last time i gave a major speech in the states was in 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. as always, britain has remained a friend. our thoughts and prayers are with the american people and all those suffering during the current tragedy. i have just flown in from 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 counterpart, the optimist sees 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. on areas as diverse as customs,
data, all those things, we have begun to navigate our way towards the and i am confident --torwards them. i want to step away from the details for a moment and look beyond the next few years. the u.k. will be outside the european union. we can tackle the greatest social and economic challenges we face in this era of globalization. the answer for these questions 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. --it is to lead the world forward once again. we must develop our economies in 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. in britain which is temperate and logical. we are the world's fifth largest economy. achieving this will not be easy.
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. now the world is undergoing an 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.
it's a written from being a large and largely rural economy at the end of the 18th century to a largely industrial one at the end of the 19th century. in this country, the era of carnegie and j.p. morgan. trade across the globe allowed of two focus on the food that were the most successful court manufacture -- for manufacture. today under 1 percent of people work in agriculture. it changed the social makeup of our countries. it led to a 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%. this new era of 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. last year the wto, reported a rise in protectionism. we have seen examples of countries failing to play by the rules, intern providing risk for global systems. -- in turn providing risk for global systems. the urgent need to remove excess capacity has not been done. the 1930's showed us the danger 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. the only sustainable way to 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 markets and seeking out new opportunities for trade and investment with a new and old friends alike. that is why our trade secretary with here in july. to launch the u.s.-u.k. trade working group. at home, britain will remain open to the town, ideas -- open to the talent and ideas, we will create an economy that works for all. we will open markets an
strengthen the open trade system. part of that will be the liberation of the service sector. doing so gives us the potential to revitalize productivity and growth. we must work together to convince other countries of the benefits. the wto 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. once we 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. it allows people to buy things they cannot afford.
these excess balances still exist. i want to visit commitment to create a international corporation to be met by international cooperation on standards. we cannot 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. we cannot do very much to regulate this advantage with less regulation. after we leave the european union, we will not be engaging in a regulatory rate to the bottom. --a regulatory race to the 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. you and we can compete to the
benefits of workers. they can build trust between different companies in different countries. they can help develop better products. the automobile industry, an 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. the you in international civil aviation organization was to agree on regulations on aviation. in 2020, there will be a new global benchmark for aerospace technology. they can help drive innovation, 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 dominate. if we are going to try to 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 economy and help us to build a country ready to compete in the modern world.
a bold vision 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. -- to drive up 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. as far as i can, you know you cannot walk around telling what you are going to do. >> two questions, i could not agree more with you on the importance of services in the global economy. have you had any success with talking to this administration when do you think the foundation will be laid in your relations with the eu so we can think about the timing of serious negotiations on that? >> is working hard on the need
to get the services as they should. theoretically, we share a common language, it should be easy. he has been working on it. it is a natural and politic -- in politics to ignore the obvious. we are working on that. on the u.s.-u.k., i suspect at the end of the day, the limiting factor will be when we conclude. we are bound by a piece of european law called a duty of sincere cooperation. which means what we do cannot undermine anything european union is doing. technically we are restricted in
the extent that we can negotiate. that restriction reduces the influence. one aspect here, which is what happens if we end up with a transition phase, we would not have a implementation of force because that would be building a big loophole in the european external tariff barrier. that is not out of line with what would be the timetable anyway. between us we are big complex economies. you would expect the deal we do to be quite long. over there, sit? -- sir?
>> thank you, thank you for your great presentation. two questions related to current european politics. you served a government that was not felt to be able to form a 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? john 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 negotiation, your profession has great fun on the politics of brexit. the real issue on brexit is practical, what kind of deal do we need? that is the driver and it is the
same driver in the parliamentary arithmetic. it will get done in time. for mrs. 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. it is going to happen in september but normally after a german election it takes 1-3 months to form a new coalition. it is a new government. within the politics of europe, 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. -- i am not going to guess publicly what it is going to be. the effect of the german election will be to accelerate the process once it happens. >> thank you for being here and for your noteworthy remarks on trade. thank you for your leadership on this issue. we agree that trade equals better lives for more people. the mechanics of trade, hundreds of millions of containers go
between the channel carrying goods, fresh fruit, produce, fast-moving consumer goods, the sanitary standards would change, 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. >> those not familiar with the arcane era of sanitary standards, it is one of the major issues in border trade post departure. to put it in context, looking at
trade with the european union, you would trade into britain outside the tariff area. 90 percent of containers are cleared in 5 seconds. after this meeting i am going to the canadian border. i used to sell high fructose syrup across the border. i was aware of the sanitation. we have to do a great deal of work to make sure there is a not parallel but identical standard area the way we are approaching the negotiation and
parliamentary terms, we are assuring that in leslie deliver we choose not to, every standard currently exists, it will be standards of british products the day after we leave. when we get back to parliament, 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. the business area is going to be
the most complex. a complex issue which will be manageable. i will probably take two more from the room and then i'm required to take them from the press as well. reporter: ralph carter with fedex. following with the question on customs, i read one of the latest papers you mentioned with 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 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 u.k. and the eu as low as it can 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 rules of origin inspections. the other approach is a blue sky approach. let's look 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 an external tarriff when you come in. it does have an administrative burden. you have to attract the product and know where it is going. that is how it works. it 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. >> thank you, secretary davis. i am the ambassador of iceland. i am wondering how seriously you have thought about using the european free trade association and the economic area agreement between 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. one 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 period, 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.
in terms of the idea of using -- the countries of norway and switzerland have different relationships through an arrangement. it has its own negotiating issue to get over. 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. secretary, i wonder if you could address the issue of the current impasse on the divorce settlement. what is the chance of the government paying money in the transition period, in order to unblock the talks? is that something you would consider?
second, do you feel more welcome 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 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. all of you know that the world outside thinks negotiation is all about 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 of days, pressure over the question of if we pay a divorce bill, and if so, what it is.
there are stories flying around. i can't comment because we have not started that negotiation, but let me say this. we have a very complex 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. the contention that has been going on is that the european negotiators are trying to say, well, we should settle the financials first and trade and other things later. but what we would be doing is go through it line by line. we've got very good lawyers. it's getting a bit tense, but it 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 tough, complicated negotiation. 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. 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 in getting into a tit-for-tat 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. first thing, we start with, as i
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 easier by the fact that they picked off parts of our constitution to do that. we have similar arrangements. we have 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 ave got. we are allies, we are friends, we are people with a common value system, we are two major 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. i think 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, to be shoulder with the united states on counterterrorism, on security issues. we do not want, in this 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 business in your country, and will be there in the
aftermath of this two-year period. good luck with your implementation, and remember that secretary fox chose the 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. >> the british parliament returns from recess this week. take from ministers questions from the house of commons life wednesday and :00 a.m. he turned and c-span2, or sunday night on :00 p.m. eastern -- here on c-span. and you can also go to c-span.org and find video of questions in the bridge public affairs rims.