Fox slaps down Johnson over no-deal Brexit tariff claims

International Trade Secretary Liam Fox has slapped down Boris Johnson over his claim Britain could use international world trade rules to continue tariff-free trade with the EU in the event of a no-deal Brexit.

Mr Johnson has argued that a provision under the General Agreement on Tariffs and Trade – known as Gatt 24 – could be used to avoid tariffs under World Trade Organisation (WTO) rules for up to 10 years.

But Dr Fox, a Brexiteer who is backing Jeremy Hunt for the leadership, said that would require the agreement of the EU, which Brussels had made clear would not be forthcoming.

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Retransmitted correcting byline to Yui Mok Conservative party leadership contender Boris Johnson leaving his office in Westminster, London.
Conservative party leadership contender Boris Johnson leaving his office in Westminster, London.
A blimp depicting Boris Johnson is launched in Parliament Square, London, ahead of a pro-European Union a march organised by March for Change.
A Pro EU demonstrator is seen wearing Conservative Party leadership contender Boris Johnson's face mask while holding a placard, during the �No to Boris. Yes to Europe� march in central London. (Photo by Dinendra Haria / SOPA Images/Sipa USA)
A stilts-walker wearing a giant Nigel Farage's head pulling two puppets, the Conservative leadership candidates Boris Johnson and Jeremy Hunt, during the �No to Boris. Yes to Europe� march in central London. (Photo by Dinendra Haria / SOPA Images/Sipa USA)
Conservative Party leadership candidate Boris Johnson jumps down from a trailer during a visit to King & Co tree nursery, in Braintree, Essex, ahead of the Tory leadership hustings in Colchester, Essex.
Conservative Party leadership candidate Boris Johnson in a fork lift truck during a visit to King & Co tree nursery, in Braintree, Essex, ahead of the Tory leadership hustings in Colchester, Essex.
Conservative Party leadership candidate Boris Johnson during a Tory leadership hustings in London.
Supporters of Conservative leadership candidate Boris Johnson before a Tory leadership hustings in London.
Conservative Party leadership candidate Boris Johnson during a visit to Wetherspoons Metropolitan Bar in London with Tim Martin, Chairman of JD Wetherspoon.
Conservative Party leadership candidate Boris Johnson during a visit to Wetherspoons Metropolitan Bar in London with Tim Martin, Chairman of JD Wetherspoon.
Conservative Party leadership candidate Boris Johnson during a visit to Wetherspoons Metropolitan Bar in London with Tim Martin, Chairman of JD Wetherspoon.
Conservative Party leadership candidate Boris Johnson during a visit to construction work for the expansion of Terminal Two at Manchester Airport.
Conservative Party leadership candidate Boris Johnson during a visit to construction work for the expansion of Terminal Two at Manchester Airport.
Conservative Party leadership candidate Boris Johnson during a visit to construction work for the expansion of Terminal Two at Manchester Airport.
Conservative party leadership candidate Boris Johnson watches as a sheep is prepared for shearing during a visit to Nosterfield farm near Ripon in North Yorkshire, ahead of the latest hustings in York later.
Conservative party leadership candidate Boris Johnson holds up a string of sausages around his neck during a visit to Heck Foods Ltd. headquarters near Bedale in North Yorkshire ahead of the latest hustings in York later.
Conservative party leadership candidate Boris Johnson sits in a chair in a clothing shop during a visit to Guisborough, North Yorkshire.
Conservative party leadership candidate Boris Johnson makes sausages during a visit to Heck Foods Ltd. headquarters near Bedale in North Yorkshire ahead of the latest hustings in York later.
Conservative party leadership contender Boris Johnson during a Tory leadership hustings at Darlington Hippodrome.
Conservative party leadership candidate Boris Johnson makes sausages during a visit to Heck Foods Ltd. headquarters near Bedale in North Yorkshire ahead of the latest hustings in York later.
Conservative party leadership candidate Boris Johnson during a visit to Guisborough, North Yorkshire.
Conservative party leadership contender Boris Johnson arriving at a Tory leadership hustings in York.
Conservative party leadership candidate Boris Johnson during a visit to Nosterfield farm near Ripon in North Yorkshire, ahead of the latest hustings in York later.
Conservative party leadership candidate Boris Johnson poses for a selfie with a steelworker during a visit to Guisborough, North Yorkshire.
Conservative leadership candidate Boris Johnson looks through binoculars on the bridge of the Isle of Wight ferry as it sets sail from Portsmouth.
Conservative party leadership contender Boris Johnson poses for a photo at the Wight Shipyard Company at Venture Quay during a visit to the Isle of Wight.
Conservative party leadership contender Boris Johnson arrives for a Tory leadership hustings in Crooklands in Cumbria.
Conservative party leadership contender Boris Johnson addresses party members at the Oaktree Arena in Highbridge, Somerset.
Conservative party leadership contender Boris Johnson thumbs up as he leaves an event after addressing party members at the Oaktree Arena in Highbridge, Somerset.
Conservative party leadership contender Boris Johnson speaking during a Tory leadership hustings at Carlisle Racecourse.
Conservative party leadership contender Boris Johnson speaking during a Tory leadership hustings at Carlisle Racecourse.
Conservative party leadership contender Boris Johnson speaking in Exeter during a Tory leadership hustings.
Conservative party leadership contender Boris Johnson sits in a boat under construction at the Venture Quay boatyard during a visit to the Isle of Wight.
Conservative party leadership contender Boris Johnson arrives to speak at a Tory leadership hustings at Carlisle Racecourse.
Conservative leadership candidate Boris Johnson looks out from the bridge of the Isle of Wight ferry St Faith, as it sets sail from Portsmouth.
Conservative party leadership contender Boris Johnson speaking at a campaign event in Wombourne in the West Midlands.
Conservative party leadership candidate Boris Johnson (left) and Dominic Rabb in The Victoria public house in Oxshott, Surrey.
Supporters during Conservative party leadership contender Boris Johnson's leadership hustings in Crooklands in Cumbria.
Conservative party leadership contender Boris Johnson's father Stanley Johnson (left) watching his son speak in Exeter during a Tory leadership hustings.
Conservative party leadership contender Boris Johnson at a campaign event in Wombourne in the West Midlands.
Campaigners from Our Future, Our Choice (OFOC) flood Lord North Street in Westminster, London, where Boris Johnson's campaign headquarters is , with 2000 rubber ducks.
Conservative party leadership contender Boris Johnson with a supporter at a Tory leadership hustings in Crooklands in Cumbria.
Conservative party leadership contender Boris Johnson speaking at a Tory leadership hustings in Crooklands in Cumbria.
Conservative party leadership contender Boris Johnson at a campaign event at the Lion Quays Hotel in Oswestry, Shropshire.
Conservative party leadership candidate Boris Johnson has a drink in the Munch and Wiggles cafe in Oxshott, Surrey.
Conservative party leadership candidate Boris Johnson (left) and Dominic Rabb in The Victoria public house in Oxshott, Surrey.
Conservative party leadership candidate Boris Johnson (centre) and Dominic Rabb (right) talk to staff in the Surrey Hills Butchers in Oxshott, Surrey.
Conservative party leadership candidate Boris Johnson (left) and Dominic Rabb in The Victoria public house in Oxshott, Surrey.
Conservative party leadership candidate Boris Johnson (right) interacts with local business people in the Munch and Wiggles cafe in Oxshott, Surrey.
Conservative party leadership candidate Boris Johnson (second left) weighs some produce in the Surrey Hills Butchers in Oxshott, Surrey.
Conservative party leadership candidate Boris Johnson (right) interacts with local business people in the Munch and Wiggles cafe in Oxshott, Surrey.
Conservative party leadership candidate Boris Johnson (right) interacts with local business people in the Munch and Wiggles cafe in Oxshott, Surrey.
Conservative party leadership candidate Boris Johnson (left) and Dominic Rabb, in The Victoria public house in Oxshott, Surrey.
RETRANSMISSION adding name of Hayley Monckton. Conservative party leadership candidate Boris Johnson (centre) walks with David Alexander (left, Director of Estates at the RHS) and Hayley Monckton (front right, Director of Communications at the RHS) while touring the RHS (Royal Horticultural Society) garden at Wisley, in Surrey.
Conservative party leadership candidate Boris Johnson during a tour of the RHS (Royal Horticultural Society) garden at Wisley, in Surrey.
Conservative party leadership candidate Boris Johnson talks to a visitor as he tours the RHS (Royal Horticultural Society) garden at Wisley, in Surrey.
Conservative party leadership candidate Boris Johnson talks to visitors during a tour of the RHS (Royal Horticultural Society) garden at Wisley, in Surrey.
Conservative party leadership candidate Boris Johnson during a tour of the RHS (Royal Horticultural Society) garden at Wisley, in Surrey.
Conservative party leadership candidate Boris Johnson (centre) gestures to visitors as his staff members walk up the steps, during a tour of the RHS (Royal Horticultural Society) garden at Wisley, in Surrey.
Boris Johnson pictured during a live phone in with LBC presenter Nick Ferrari, at their studios in central London. Picture date: Tuesday June 25, 2019. Photo credit should read: Matt Crossick/Empics
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"In order to benefit from the terms of Article 24, there must be an agreement between two WTO members as to the elimination of duties and other restrictive regulations on substantially all trade," he said in an article posted on LinkedIn.

"Therefore, Article 24 would not, by itself, allow the UK to maintain tariff-free trade with the EU in the absence of a negotiated agreement.

"A 'no deal' scenario, by definition, suggests that there would be no mutual agreement between the UK and the EU on any temporary or permanent arrangement. In those circumstances Article 24 cannot be used.

"The European Union has made it clear on a number of occasions that full tariffs will be applied to the United Kingdom in the event of 'no-deal'."

He added: "It is important that public debate on this topic is conducted on the basis of fact rather than supposition, so that we are able to make decisions in the best interests of our country."

His comments echoed the Bank of England Governor Mark Carney who said that without an agreement with the EU, WTO tariffs would apply "automatically" in the event of no-deal.

In an interview with LBC on Tuesday, Mr Johnson insisted Gatt 24 did offer a possible "way forward" but accepted that Mr Carney was right to say it required "mutuality".

"Where Mark is right, is saying that implies mutuality. There has to be an agreement on both sides," he said.

"But he's wrong in thinking it's not an option. It certainly is an option, people are wrong if they say it's not an option."

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