UK can have CanadaEU style trade deal if free movement IS scrapped, says Spanish minister


Jose Manuel Garcia-Margallo, Spain’s foreign minister, said if Theresa May insists on scrapping free movement she should follow the Canadian model. 

Under the Comprehensive Economic and Trade Agreement (CETA) most customs duties for trade between the EU and Canada are due to be eliminated and markets in services will be opened up.

Speaking at a meeting of EU foreign ministers in Luxembourg, Jose Manuel Garcia-Margallo said: “Forget the Norwegian model, forget the Swiss model because of the condition for the freedom of movement of people, and forget a Turkish-style customs union.

“If the British insist on having the option to restrain the free movement of European workers to the United Kingdom, the only solution is the Canadian one.” 

The CETA deal has taken seven years to negotiate and is is facing last-minute delays after being voted down by a Belgian regional parliament.

Sources close to Number 10 believe

One source said: “If Canada can strike a free trade deal with the EU and trade freely outside it, then why can’t we? 

“The EU is Canada’s second trading partner, after the US and accounts for 10 per cent of its external trade but by comparison, the EU is Britain’s biggest trading partner, accounting for more than 45 per cent of exports and even higher imports. 

“But the point about tariffs is that if the EU places them on us, we’ll just reciprocate and they’ll be cancelled out anyway. 

“Frankly, we should accept nothing less than Canada-type deal and a whole lot more.”

CETA has been seen as the EU’s most ambitious trade deal to date and is designed to remove regulations on trade across the Atlantic, making exports easier and cheaper.

If approved it will give Canadian businesses the power to sue governments should any new laws affect their profits. 

Supporters say it will boost the EU economy by £10billion a year and create jobs. 

Brexit minister David Davis declared CETA “would be a perfectly good starting point” for Britain’s negotiations with the EU. 


Many see it as a precursor to the Transatlantic Trade and Investment Partnership (TTIP), a series of trade negotiations between the EU and US. 

TTIP is set to be the biggest ever agreement of its kind- covering a quarter of global trade.