Theresa May: Financial Services Must Be Included in Brexit Deal

Photo by U.S. Air Force Staff Sgt. Jette Carr

In her most substantive speech regarding Brexit to date, Theresa May, the British Prime Minister has said that financial services should be included in a future trade deal with the European Union.

The Prime Minister enumerated some demands, saying that they were not “cherry picking.” However, she admitted that a number of compromises would have to be made throughout the course of negotiations.

PM May made a case for the inclusion of financial services in a future trade deal while talking at the Mansion House – with the weather hindering the plan to do it in Newcastle.

Pointing to the work that is carried out on financial services within TTIP as a potential model, she stated: “We have the opportunity to break ground with a broader agreement than ever before.”

Therese May proposed for “labour mobility” to be retained, while market access must be based on regulatory outcomes with an inclusion of a dispute mechanism. However, it will require a “collaborative, objective framework that is reciprocal, mutually agreed and permanent,” added the Prime Minister.

During a speech that was perceived to be far more detailed than expected, Theresa May reaffirmed her commitment to withdrawing from the customs union and Single Market – and emphasised that the United Kingdom would be no form of union that would affect the ability of the UK to strike deals with other nations.

On goods, she said that the United Kingdom would reject the introduction of quotas or tariffs and called for only a single set of checks to ensure that goods will meet regulatory standards. The United Kingdom would commit to maintaining standards on that basis.

As a concession from the original “cake and eat it” starting point of the government, the Prime Minister accepted that the United Kingdom would not be able to have it all.

She stated: “We both need to face the fact that this is a negotiation and neither of us can have exactly what we want.”

As an example, the United Kingdom would have to agree on some “binding commitments” in order to obtain the access that it wanted.

The Prime Minister suggested that the United Kingdom should pay for associate membership of various agencies such as European Chemicals Agency, European Aviation Safety Agency, and European Medicines Agency so that the nation can have access to those sectors.

However, she rejected the claim of the European Union that the United Kingdom was cherry picking.

She stated: “Every FTA has varying degrees of access.

“If this is cherry picking, then every trade deal is cherry picking.

As a conclusion, she added: “My message to our friends in Europe is clear: We know what we want, we understand your principles. We have a shared interest in getting this right, so let’s get on with it.”