David Davis will seek to reassure Tory Eurosceptics that the UK will exercise its independence as soon as the country leaves the EU amid a row over the Government’s approach to Brexit.
The Brexit Secretary will insist that Britain will be able to sign trade deals with other countries during the transition period after leaving the European Union in March 2019.
His intervention comes after Downing Street rebuked Chancellor Philip Hammond after he said he hoped Brexit would only result in the UK and EU moving “very modestly” apart in trade terms.
And in a warning about the divisions within the Conservative Party, influential Tory Brexiteer Jacob Rees-Mogg urged ministers not to be “timid and cowering” in their approach to EU withdrawal.
Chancellor Philip Hammond has faced a backlash over his Brexit comments (Matt Dunham/PA)
Mr Davis will insist the UK will be able to act independently to seek new trade deals around the world despite being largely tied into Brussels’ rules during a transition period lasting around two years after March 2019.
In a speech in Middlesbrough he will say: “As an independent country, no longer a member of the European Union – the United Kingdom will once again have its own trading policy.
“For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe.”
While the UK will replicate the effects of the EU customs union during the “implementation period” this “should not preclude us from formally negotiating – or indeed signing – trade agreements”.
Any such deals would enter into force at the end of the implementation period.
Mr Davis told MPs on Wednesday that he expected Brussels to resist the UK holding trade talks with other countries during the period because “there are people within the union who want to restrict any advantage for us”.
The speech comes after Mrs May held talks with Donald Trump who said he expected trade between the US and UK to “increase many times” over the coming years.
The speech by Mr Davis comes as Number 10 sought to contain a row over Mr Hammond’s comments at the World Economic Forum in Davos.
The Chancellor – who is regarded by many Eurosceptics as a Cabinet obstacle to a “clean break” from Brussels – said he was hopeful of achieving a good deal on future trade with the EU because “we are taking two completely interconnected and aligned economies with high levels of trade between them and selectively moving them – hopefully very modestly – apart.”
A Downing Street source said: “The Government’s policy is that we are leaving the single market and the customs union.
“Whilst we want a deep and special economic partnership with the EU after we leave, these could not be described as very modest changes.”