Liam Fox insists UK can 'survive' without post-Brexit free trade deal with the EU

Liam Fox has insisted the UK could “survive” without a post-Brexit free trade deal with the European Union.

The International Trade Secretary downplayed the importance of the UK doing a deal with the EU on future trading arrangements but said a new agreement should be “one of the easiest in human history”.

His comments are in stark contrast to the view expressed by Philip Hammond, the Chancellor, who said that no deal would represent a “very, very bad outcome” for Britain.

Dr Fox told BBC Radio 4’s Today programme that while he wanted a new deal to be done it would not be the end of the world if an agreement could not be reached.

He said: “We don’t want to have no deal, it is much better that we have a deal than no deal.

“We can of course survive with no deal and we have to go into a negotiation with those on the other side knowing that that’s what we think.

“Of course we want to come to a full and comprehensive deal with the European Union. Why? Because it is good for the people of Britain and it’s good for our economy, it’s good for the consumers and the workers of Europe and their economy.

“If you think about it the free trade agreement that we will have to come to with the European Union should be one of the easiest in human history.

“We are already beginning with zero tariffs and we are already beginning at the point of maximal regulatory equivalence as it is called, in other words our rules and our laws are exactly the same.

“The only reason that we wouldn’t come to a free and open agreement is because politics gets in the way of economics.”

Mr Hammond was accused of undermining Theresa May’s Brexit mantra that “no deal is better than a bad deal” in June when he said that "no deal would be a very, very bad outcome for Britain”.

Dr Fox is set to meet with the World Trade Organisation's director general Roberto Azevedo in Geneva today to discuss the UK's legally binding tariffs and levels of market access for trade in goods and services.

He will also deliver a speech in Switzerland in which he will outline concerns at “the voices of protectionism growing louder”.

Dr Fox was also asked on the Today programme if he expected to still be International Trade Secretary in a year’s time.

He replied: “Will you be in your job in another year’s time? None of us can predict the future.”

However, he said he did believe that the Mrs May would still be in post.

He said: “In terms of the Prime Minister I think that the Prime Minister is likely to be there for the rest of this Parliament.

“I think she has the support of her colleagues in the House of Commons. I think she has a mandate to be the Prime Minister.”