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Thank you.

We鈥檙e on the cusp of a profound moment for British trade. It鈥檚 almost exactly 13 months since Article 50, so it鈥檚 now 11 months until we leave the European Union.

As has often been said, nothing is agreed until everything is agreed. But based on that text that was agreed last month, that means we鈥檙e 11 months from being able to negotiate and sign trade agreements 鈥� a power we haven鈥檛 had for 45 years.

That really does matter: it鈥檚 a time of great opportunity, but also great responsibility.

The vitalness of stakeholder engagement

And if nothing else that reminds us 鈥� especially sitting here, in the world鈥檚 greatest scientific society 鈥� of the need for a good evidence base.

Trade policy can be complex, after all. So I鈥檇 like to thank you all for coming 鈥� it really is important for us to hear what you have to say, and for you to contribute your expertise.

That鈥檚 why we genuinely put a lot of stock on stakeholder engagement 鈥� and thank you to everyone who responded to the Trade White Paper.

Many of you here are from business, or representing businesses. As I often say: businesses trade, not the government 鈥� we鈥檙e just here to help them trade.

Trade agreements are important, but ultimately they are simply there to facilitate you to do the actual trading.

They only have value insofar as they鈥檙e of value to individuals and to businesses.

The first thing that businesses normally raise with me is their need for certainty, so that鈥檚 the first thing I鈥檓 going to address: how our trade policy is designed to deliver certainty and continuity, whilst also taking advantage of the opportunities that lie outside the Customs Union.

Business after Brexit: certainty and continuity

The agreed text provides for an implementation period until the end of 2020, during which business will have access to the single market on the same terms they do now, giving more certainty for the near future and more time for firms to adjust.

And for 2021 onwards, the Prime Minister has said that she wants a deep, comprehensive and unique free trade agreement with the EU, so our businesses can have the best possible market access.

And, turning to my area of responsibility as Minister for Trade Policy, we are looking to transition the EU鈥檚 40-or-so existing third-party free trade agreements, to give our businesses continued access to those markets on current terms.

We鈥檙e also supporting the EU in its ongoing negotiations elsewhere. The Commission is currently prioritising new agreements with Singapore and Vietnam and we are strong supporters of these: we鈥檙e full members of the EU until we leave, and we鈥檙e going to play a constructive role in the meantime.

And we鈥檙e working to take up our independent position at the World Trade Organization, too. We鈥檙e already a member in our own right, but we鈥檙e currently covered by the EU鈥檚 commitments, so we need to negotiate schedules in our own right.

This is not a cliff edge 鈥� the EU鈥檚 schedules haven鈥檛 been up to date in years.

Nonetheless, it is important that we do update them. In order to deliver maximum certainty and continuity for businesses, we will be replicating the EU鈥檚 existing schedules.

Together, these will give a great deal of certainty: certainty of continued access to the EU market in the near-term; certainty of deep and comprehensive access in the long-term; certainty of continued access to the EU鈥檚 free trade agreements; and the certainty of the WTO鈥檚 global rules.

And that certainty is certainly achievable.

Achieving continuity: trade bill, FTAs, the WTO

On the free trade agreement, it鈥檚 in the strong interests of both sides to agree thoroughgoing access to each other鈥檚 markets.

The EU27鈥檚 exports to the UK were nearly 拢320 billion last year, making us their second-largest trading partner after the US. This trade is worth more to the UK in relative terms, true, but it鈥檚 not a zero-sum game.

And this is the only agreement in history where both sides start from a position of regulatory alignment.

Domestically, as Minister for Trade Policy I鈥檓 currently taking the Trade Bill through the House of Commons.

That will give the government the domestic powers we need to roll over existing EU free trade agreements, and to sign up the World Trade Organization鈥檚 , so that UK companies can maintain their access to a global public procurement market 拢1.3 trillion 鈥� and so our public services get the best value possible, on passports or anything else.

The opportunities from Brexit

So that鈥檚 our approach for the near term, for continuity, for certainty. But what of the opportunities?

The first thing to say is that this isn鈥檛 all about trade agreements: the government is not solely concentrating on Brexit. To give one example, DIT is currently designing a new Export Strategy.

That will boost our exports 鈥� whether they鈥檙e going to the EU or the rest of the world.

As for our future trade regime - any future trade regime must benefit the poorest among us. That鈥檚 really important.

The Taxation (Cross-Border Trade) Bill will let us set up our own trade preferences regime, to give developing countries preferential access to the UK market 鈥� again, we will deliver maximum certainty.

As a minimum, we will provide the same access as the EU, whilst leaving ourselves room to explore options to make our preferences even more generous and easy to use in the future.

And any future regime must work for consumers, as well as businesses.

We鈥檙e absolutely committed to upholding and strengthening our already high standards 鈥� so that consumers know they鈥檙e getting products that are safe to use, of good quality, and friendly to the environment.

As a country, our comparative advantage is in quality, not price: we want to see a global race to the top, not a race to the bottom.

Why we should leave the Customs Union

As for the Customs Union. The Prime Minister has been very clear that leaving the EU means leaving the Customs Union, and the UK will be leaving the Customs Union. That position was restated only this week.

Recently there鈥檚 been a lot of talk about this, and whether the UK would be better off leaving the EU but staying in a Customs Union.

So I鈥檇 like to talk through the reasoning behind this decision, and why it鈥檚 the right one.

If we are in a Customs Union, we would be unable to negotiate new agreements with countries outside the EU. And that鈥檚 where the real opportunities will lie: according to the IMF, 90% of global growth will be outside the EU over the next decade or so.

While Europe quibbles over tenths of percents, China, for example, is adding an economy the size of Norway to its GDP every 7 months 鈥� and that鈥檚 not even at purchasing power parity.

A Customs Union would leave us with the worst of both worlds. Remember that we cannot stay in the Customs Union, as we will not be a member state 鈥� legally it would only ever be a Customs Union.

If you look at Turkey鈥檚 Customs Union, whenever the EU signs a trade agreement with a third country, Turkey has to open up its markets to imports from that country. But Turkey鈥檚 exporters don鈥檛 get access to the third country鈥檚 markets in return 鈥� that鈥檚 reserved for EU exporters.

Turkey has to sign its own trade agreements with the third countries. But that鈥檚 very difficult, because Turkey isn鈥檛 allowed to offer those third countries anything in return, because it鈥檚 in a Customs Union.

So we should not be staying in the Customs Union. We should aim for an agreement that gives us the best of both worlds and there鈥檚 no reason why we can鈥檛 achieve that.

Trade with the EU and trade with the rest of the world 鈥� it doesn鈥檛 need to be an either/or choice.

For the reasons I set out earlier, it鈥檚 in both sides strong interests to sign a good EU-UK free trade agreement.

And we are also looking to sign new trade agreements abroad. Whilst in the EU we are still bound by the duty of sincere cooperation, so cannot sign or negotiate new agreements.

But we are preparing the ground. We have set up trade working groups covering 21 countries, including the world鈥檚 largest economies. Myself and other DIT ministers have made over 160 overseas visits.

Only last week I was in Singapore, talking to representatives of the ASEAN nations 鈥� it was fascinating to see the dynamism and optimism on show, and that鈥檚 something we should be taking advantage of.

But we can only fully take advantage with your expertise, so thank you all again for coming today.

Thank you.