Bank of England governor Mark Carney warns post-Brexit trade deals will be harder due to increasing global strife

MARK Carney has warned that future trade deals after Brexit will be harder because of deepening global strife.

The Bank of England’s governor steps down next month after seven years to take up a new role as the UN’s special envoy for climate action.

In a farewell interview, the Canadian boss of Threadneedle Street said a breakdown of the old world order’s rule book will make new agreements harder to reach.

Mr Carney told BBC Radio 4’s Today Programme: “Those deals will be delivered in the context of a very shifting global environment for trade.

“The global system of trade is fragmenting, we should be absolutely clear about that.”

A long running stand off between the USA and China is the biggest reason for the logjam, Mr Carney said.

But he also highlighted the disruptive effect of the tech revolution as well as the growing need to take climate change into account.

The governor added: “The world has to determine around climate what are the trading relationships going to be.

“You don’t want to be in the situation where jobs are at risk here because they’re just being shifted offshore with no net benefit to the climate.”

Britain must replicate all 40 free trade deals that the EU that cover 70 countries by the end of the 11 month long transition period after Brexit, that ends on December 31 2020 to get the same market access as today.

Downing Street insists rolling them over will be straight forward once a new EU trade deal is in place.

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