U.K.’s Theresa May Seeks to Reassure G-20 on Brexit’s Effect on Trade
Theresa May, Barack Obama pledge strong U.S.-U.K. ties following referendum
Flanked by U.S. President Barack Obama, Mrs. May said the U.K. is still open for business and is looking to establish new trade relations around the globe. “As we forge a new global role for the U.K., we can and will seize the opportunities that Brexit presents, and make a success of it,” she said.
Meanwhile, top EU officials warned Britain against negotiating any bilateral trade deals as long as it is still part of the bloc.
In a joint news conference before the start of a gathering of leaders from the Group of 20 top world economies, Mrs. May and Mr. Obama on Sunday said the two countries’ ties remained strong following the British decision.
Mr. Obama said the U.S. would work with Britain to make sure there is no adverse effect on trade and economic relations between the U.S. and U.K. as a result of the British decision to leave the EU. But he didn’t soften his stance that the U.K.’s decision would delay any new, direct trade negotiations between the two countries.
He said “it would not make sense” for the U.S. to put aside trade efforts with Asia and the EU to negotiate with the U.K.
“We’re going to do everything we can to make sure that the consequences of the decision don’t end up unraveling what is already a very strong and robust economic relationship that can become even stronger in the future, but first things first,” he said. “And the first task is going to be figuring out what Brexit means with respect to Europe.”
Mrs. May, who became prime minister in July following David Cameron’s resignation after the referendum, ruled out any chance the U.K. might ultimately stay in the EU. “There will be no second referendum” and “no attempt to get out of this,” she said. “The U.K. will be leaving the European Union.”
But top EU officials at the G-20 meeting stressed that Britain is still bound by the rules of the bloc as long as it is a member, including a ban on negotiating its own trade deals.
“As far as Brexit is concerned, negotiations of free-trade agreements are a competence of the European Union,” said European Commission chief Jean-Claude Juncker in a news conference.
Anticipating questions from world leaders about the impact of the British exit, Mr. Juncker said that the EU hasn’t become the “enemy” of the U.K. and that it will seek a fair partnership with the island nation. “Brexit is a sovereign decision we have to respect, but this doesn’t mean the end of the EU,” he said.
Besides the U.S., Mrs. May is expected to have preliminary talks about trade relations with Australia and China.
“They can talk to other leaders, we can’t prevent them from doing that. But they can’t engage in any trade negotiations as long as they’re part of the EU,” said an EU official.
European Council President Donald Tusk, who represents the leaders of the EU, said that “it might sound brutal,” but “we need to protect interests of the members of EU that want to stay together, not the ones who decide to leave.”
He reiterated the position that no negotiations can kick off with the British government until the legal clause is triggered that sets the two-year clock for negotiating the terms of Brexit. Mrs. May has previously indicated she won’t trigger that legal clause this year.
Mr. Juncker also stressed that if the U.K. wants to be granted access to the bloc’s internal market, it will have to respect the rules of the bloc, including granting free movement of workers. In a letter to Mrs. May leaked to British media, Foreign Secretary Boris Johnson said controlling the immigration from EU countries should be a red line for the May government in the Brexit negotiations.
Ahead of the British referendum on June 23, Mrs. May was in favor of the U.K. staying in the EU. Mr. Obama also advocated for the U.K. to remain in the EU, saying the country would move to the “back of the queue” in trade talks with Washington if it left. On Sunday, he said the U.S. supports a process for the U.K. exiting the EU that is the least destructive possible.
Asked about her government’s announcement that it would delay until the fall a final decision on a new U.K. nuclear plant partly funded by China, Mrs. May said she would review the evidence and make a determination this month.