♫I’ve got to be♫
>> MARIA: WELCOME BACK.
NAVIGATING TRADE AS BREXIT
NEGOTIATIONS FORGE ON, GLOBAL
TRADE REMAINS A FOCAL POINT FOR
GLOBAL LEADERS, INCLUDING
THERESA MAY.
THE U.S. IS PREPARED TO
NEGOTIATE.
JOINING US RIGHT NOW IS THE
TRADE COMMISSIONER FOR NORTH
AMERICA, ANTHONY PHILIPSON.
THANK YOU FOR JOINING US.
>> THANK YOU SO MUCH.
>> MARIA: WE WANT TO GET CLARITY
ON WHEN WE’LL HEAR MORE IN TERMS
OF THE PLANS FOR BREXIT.
WHEN I WAS ACTUALLY IN EUROPE
JUST RECENTLY, THERE WAS A LOT
OF DISCUSSION ABOUT HOW THE U.K.
IS THE UNDERPERFORMER AND IT’S
LARGELY BECAUSE THERESA MAY
HASN’T SHOWN SHE HAS THE
MANDATE, THERE’S TOO MUCH
WAFFLING GOING ON.
START THERE.
WHEN DO YOU EXPECT THE DETAILS
OF THE PLAN TO LEAVE THE
EUROPEAN UNION TO BE FINALIZED
AND COMMUNICATED?
>> IT’S A GREAT PLEASURE TO BE
HERE AND HAVE THE CHANCE TO TALK
ABOUT THIS TOPIC.
THE PROCESS HAS BEGUN.
WE’RE INTO THE NEGOTIATION.
WE BEGAN IT IN MARCH LAST YEAR
WHEN WE LAUNCHED THE ARTICLE 50
PROCESS.
THERE WAS SUBSTANTIAL
NEGOTIATIONS LAST YEAR, REACHING
THE AGREEMENT.
NOW WE START TALKING ABOUT
IMPLEMENTATION AND WE WILL ALSO
START TALKING ABOUT THE FUTURE
PARTNERSHIP AND PEOPLE WILL
ALWAYS WANT MORE DETAIL.
BUSINESS WILL ALWAYS WANT MORE
DETAIL.
THEY HATE UNCERTAINTY.
>> MARIA: THEY CAN’T MAKE THEIR
PLANS.
THEY’VE GOT TO EITHER STAY IN
LONDON OR GO TO GERMANY.
>> WE TALK TO THE BUSINESS
COMMUNITY A LOT.
WE HAVE MADE CLEAR IN TERMS OF
THE IMPLEMENTATION PERIOD, WE
EXPECT TO PROVIDE A PERIOD OF
CERTAINTY GOING BEYOND
MARCH 2019, A SHARED AMBITION
BETWEEN THE U.K. AND THE E.U.
AND THERE IS A SHARED AMBITION
BETWEEN THE E.U AND THE U.K.
PART THE FUTURE PARTNERSHIP.
THIS WILL HAPPEN OVER THE NEXT
FEW WEEKS AND MONTHS.
>> WHERE ARE YOU ON THE
CORPORATE TAX PLAN?
THERE’S A PLAN TO TAKE IT DOWN
TO 17% OVER THE NEXT THREE
YEARS.
IS THAT A CONTENTIOUS ISSUE IN
NEGOTIATING BREXIT?
I KNOW THERE’S BEEN SOME ISSUES
WITH IRELAND RECENTLY AND YOU
HAVE A THIRD PARTY SUPER STATE
WHICH IS THE E.U. INVOKING --
IT’S TRYING TO INVOKE ITS POWERS
OVER SOVEREIGN STATES.
WHERE ARE YOU GUYS ON THE TAX
NEGOTIATION ASPECT OF BREXIT?
>> IN TERMS OF THE OVERALL
NEGOTIATION, WHERE WE ARE IS IN
TERMS OF HOW DO WE WORK OUT THE
PARTNERSHIP IN THE FUTURE.
IT WILL BE A PARTNERSHIP BETWEEN
THE U.K. AND THE E.U.
ON THE TAX SIDE, WE HAVE BEEN --
THIS IS A PROGRAM OF CORPORATE
TAX REFORM THAT’S BEEN GOING ON
HE PRE THE REFERENDUM.
THIS IS NOT AN ISSUE THAT IS RUN
OUT OF BRUSSELS.
ALL MEMBER STATES SET THEIR OWN
TAX.
THE E.U. WANTS TO BE CLEAR WE’RE
NOT ACTING IN A WAY OUT OF
KILTER WITH THE E.U.
THE U.K. NEEDS TO SET A CLEAR
AND EFFECTIVE TAX REGIME THAT
WILL BE ATTRACTIVE FOR PEOPLE TO
SET UP IN THE U.K.
>> MARIA: WHAT DO YOU WANT TO
SEE FROM THE U.S.?
>> WE WANT TO SEE MORE OF THE
SAME.
THE TRADE PARTNERSHIP IS
INCREDIBLY DEEP.
WHAT WE WANT TO DO AS WE COME
OUT OF THE E.U. IS TO TAKE THE
RELATIONSHIP INTO THE FUTURE,
AROUND THE NEW TECHNOLOGY LIKE
ARTIFICIAL INTELLIGENCE, DATA,
DRIVERLESS VEHICLES, LIFE
SCIENCES, FINANCIAL SERVICES.
THESE ARE AREAS OF REAL SORT OF
COMMONALITY BETWEEN THE U.K. AND
U.S.
WE WANT TO BUILD THAT
PARTNERSHIP FOR THE FUTURE.
>> THERESA MAY IS EXPECTED TO
MOVE THE BREXIT DIVORCE RATE UP
THREE MONTHS.
IS THAT IN THE PLANS?
>> WE’RE IN THE MIDDLE OF A
NEGOTIATION.
THE PRIME MINISTER SAID SHE
EXPECTS THE IMPLEMENTATION
PERIOD TO LAST AROUND TWO YEARS.
IN E.U. IN THE INITIAL FRAMEWORK
PROPOSED UP UNTIL DECEMBER 2020.
THAT IS THE SUBJECT OF THE
NEGOTIATION NOW.
>> THE REASON I FOCUSED ON TRADE
IS BECAUSE EVERYTHING IS UP IN
THE AIR AT THIS POINT.
PRESIDENT OBAMA HAD SAID A
COUPLE YEARS AGO, LOOK, IF THE
U.K. GOES FORWARD WITH BREXIT,
THEY’RE GOING TO BE AT THE
BOTTOM OF THE LINE.
WHERE DO YOU FEEL YOU ARE IN
TERMS OF DOING A BILATERAL DEAL
WITH THE U.S. IN TERMS OF TRADE?
>> I THINK WHERE WE ARE IS WE’RE
IN THE MIX.
THERE IS A SORT OF DYNAMIC
CONVERSATION GOING ON AROUND THE
WORLD ABOUT TRADE
LIBERALIZATION.
IN JULY LAST YEAR THE SECRETARY
OF STATE FOR INTERNATIONAL
TRADE, LIAM FOX LAUNCHED A TRADE
INVESTMENT WORKING GROUP.
THEY WILL TALK ABOUT ISSUES THAT
WILL STRENGTHEN AND DEEPEN THE
RELATIONSHIP BETWEEN OUR
COUNTRIES.
BOTH SIDES COMMITTED TO THIS AT
THE HIGHEST LEVEL.
WE KNOW THAT WE NEED TO DO IT AT
THE APPROPRIATE TIME AND WE KNOW
THAT SOME ON THIS SIDE WILL WANT
TO KNOW WHERE WE’LL END UP WITH
THE E.U.
THE TRACKS WILL RUN ALONGSIDE
EACH OTHER.
WE WILL PUSH FORWARD ON ALL OF
THEM AS FAST AS WE CAN.