By Anna Moloney
Trade secretary Kemi Badenoch has pledged her government “gets the City” as she launches trade deal talks with Switzerland.
Speaking exclusively to City A.M., the business and trade secretary said the free trade deal’s (FTA) “potential is limitless” as she hopes to unlock investment in tech, digital and data.
The former Tory leadership contender will launch talks for a services-focused deal with her Swiss counterpart Guy Parmelin in Bern today.
Negotiators will aim to update the 1970s EU-Swiss deal to reflect the modern world in which more than two thirds of UK service exports are delivered electronically.
It is hoped the deal will lower tariffs on UK exports to Switzerland, a change which could save British businesses near £7.4m a year, according to the department of business and trade.
Badenoch will also visit the SIX Swiss Exchange and meet with female business leaders during her stay in Bern.
Badenoch refused to give a deadline for the FTA taking effect but insisted “businesses should know we’re working at pace”.
“We’re trying to make sure the deal is focused on what’s really critical,” she said.
On an FTA with the US, she said a deal was not on the table after Biden’s administration ruled it out – but insisted it was “untrue” that the UK was “at the back of the queue”.
“The US is not doing any national FTAs with any country,” Badenoch said. “And that’s fine because it’s only one tool in the trade army – there’s a lot we can do outside of that.”
Negotiations are underway with California for a state level deal – while trade wonks also have their eye on Florida, New York and Texas.
Speaking on the UK’s competitiveness as a destination to invest in, Badenoch reiterated the Conservatives’ commitment to business.
“Pretty much my entire professional career was in financial services operations. We understand it. We get it. We’ve come from that world.
“If they want a government that gets the City, there’s no one better than the people who are in government right now to do that,” she said.
Easing the investment environment and looking at corporation tax rates to attract more businesses to the UK can “build on top” of FTAs, she added.
In the wake of concerns over businesses increasingly leaving London, Badenoch was also keen to defend the Square Mile. “Look at the landscape that we have. Look at our skill sector. We have lots of fantastic people who are starting businesses and scaling up as soon as they can. The UK has the skills they’re looking for.”
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