David Davis warns against using Brexit to disrupt “fragile” European markets
David Davis, the Brexit secretary, has warned against using the departure from the EU to disrupt Canada, for fears it could have a knock-on impact on "fragile" European markets.
Speaking in the House of Commons this morning, Davis said it was "not going to be in the interests of either side, either Britain or the EU, to see disruption."
“We have to treat as absolutely central to what we do maintaining the stability of both the City but also the European financial markets. The European financial markets are a little fragile over the last few years.”
He also said he would not be limiting the "free movement of brain power" and businesses will still be able to recruit talent from overseas after the UK leaves the EU.
"It’s not going to be in the national interest to restrict the movement of talent, if you like, the free movement of brain power," he told MPs.
"We can be very confident that we will not be limiting highly intelligent and highly capable people’s access to the UK."
Read more: Cameron's top advisor on why Remain los
He also sought to reassure MPs that the UK was "seeking the most open possible market with the European Union" and that he would seek the best possible deal for the City in any negotiations.
"The chancellor and I are both determined to ensure we get the best possible deal for our financial services sector… Not just for Canada but for the country more widely.
"We are determined to ensure this UK-wide industry continues to thrive. Financial services will be of great importance. We will seek the best possible terms for our financial services in the European market."
He refused to be drawn on whether the government would put in place transitional arrangements for the financial services sector in the event that a trade deal was not done.
"In the financial sector, as in other sectors, at the point of exit from the European Union, the standards, all the conventions, all of the regulations will be identical, so the transition should be capable of being managed very cleanly," he said.
Hilary Benn, the new chair of the Brexit select committee, called on the government to give assurances this morning. He warned that "businesses may begin to take decisions because they do not know what the future holds."
Davis was pressed by MPs across the chamber who called for arrangements to be put in place to protect the City, who are concerned of the effect that withdrawing from the single market could have.
Yesterday, the chancellor Philip Hammond reassured their fears, and told them he was listening to their concerns.
Keir Starmer, the shadow Brexit secretary repeatedly asked him when the plans for Brexit would be available for parliament to scrutinise, but Davis did not give a specific answer.