Michael Barnier, the EU’s Chief Negotiator in the Brexit talks has said that the EU will exclude Financial Services from a Brexit Trade Deal.
He went on to say that no existing EU trade deal includes financial services. He was speaking to a group of EU newspapers.
Barnier said “There is no place [for financial services]. There is not a single trade agreement that is open to financial services. It doesn’t exist,” He went on to say that the loss of access for the City of London was a consequence of the UK’s decision to leave the single market.
“It is the consequence of the red lines that the British have chosen themselves. In leaving the single market, they lose the financial services passport.’
Services make up the bulk of the UK economy and UK Brexit Secretary, David Davies has said that he’s seeking a trade deal including services. A “Canada plus plus plus” deal
A full trade deal will be impossible before the UK’s exit date of March 2019, Barnier said previously, although in the same interview he did acknowledge that it would be possible to sort out a deal in a two-year transition period. He also said all 35 EU national and regional parliaments will have to ratify it. He has said too that the UK could negotiate its own trade agreements during the 2-year period but would have to wait to the end of the period before any such agreements could come into force.
The UK will have to follow EU rules during the proposed transition period, said Barnier and that would even include any new laws passed during any transition period.
Theresa May, UK Prime Minister appeared to dismiss the assessment made by Barnier that the UK cannot make a bespoke trade deal after Barnier was seemingly contradicted by his senior advisor, Stefaan De Rynck during a speech at Chatham House, a British think tank.