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UK's Theresa May Seeks to Reassure G-20 on Brexit's Effect on Trade
| Wall Street Journal | - |
HANGZHOU,
China—At a summit of world leaders worried about anemic global trade
and investment, British Prime Minister Theresa May sought to dispel
concerns of trade disruption from the U.K.
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
ENLARGE
Britain's Prime
Minister Theresa May, left, and U.S. President Barack Obama shake hands
after speaking to reporters following their meeting alongside the G-20
Summit in Hangzhou, China, on Sunday.
Photo:
Reuters
Standing alongside 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.
Top EU officials, nevertheless, warned Britain against negotiating any bilateral trade deals as long as it is still part of the bloc. And Japan, whose banks and auto companies are heavily invested in Britain, cautioned Mrs. May against steering the U.K. away from the EU in a way that could imperil the country’s access to the single market.
“It is of great importance that the U.K. and the EU … remain attractive destinations for businesses where free trade, unfettered investment and smooth financial transactions are ensured,” according to a statement on Japan’s Ministry of Foreign Affairs website that set out Japan’s priorities ahead of trade talks between London and Tokyo.
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 …,” he said. But “the first task is going to be figuring out what Brexit means with respect to Europe.”
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,” an EU official said.
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.
European Commission chief Jean-Claude Juncker 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 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. remaining. Mr. Obama also advocated that position, 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.
—Alexis Flynn in London contributed to this article.
Write to Carol E. Lee at carol.lee@wsj.com and Valentina Pop at valentina.pop@wsj.com 
