Dominic Raab branded ‘deluded’ as he seeks trade ties on Americas tour

Dominic Raab vowed to ‘fire up’ trade ties outside the EU today as he launched a tour of Canada, the US and Mexico – but was immediately branded ‘deluded’ by a former White House adviser. 

The Foreign Secretary is forging ahead with a diplomatic blitz designed to pave the way for post-Brexit deals around the world. 

But Larry Summers, who served as US treasury secretary and economic adviser under Barack Obama, warned that the ‘desperate’ UK has ‘no leverage’ and should not expect generous terms.

Mr Raab is on his second major overseas trip since being appointed to the crucial post by Boris Johnson.

He will be in Toronto today before moving on to Washington tomorrow and Mexico City on Thursday.

Donald Trump (pictured) has talked up a ‘great’ trade deal with the UK, but Larry Summers, who served as US treasury secretary and economic adviser under Barack Obama, warned that the Britain has ‘no leverage’

Mr Raab said ahead of the trip: ‘In my first fortnight as Foreign Secretary, I’m travelling east and west to underline that the UK is determined to strengthen our friendships with countries across the world and raise our international horizons.

‘I’m determined that we fire up our economic relationships with non-European partners.

‘That means working with them now to ensure a smooth transition of our trading arrangements after Brexit and means quickly moving to wide-ranging trade deals that boost business, lower prices for consumers and respect our high standards.

‘I also want to build a stronger alliance to uphold international rule of law and tackle the issues that threaten our security, whether that’s Iran’s menacing behaviour or Russia’s destabilising actions in Europe, or the threat from terrorism and climate change.’

However, speaking to BBC Radio 4’s Today programme, Mr Summers said: ‘I’m not sure what Britain wants from the United States that it can plausibly imagine the United States will give.

‘If Britain thinks that the American financial regulators who have great difficulty coming together on anything are going to come together to give greater permissions and less regulation of UK firms, I would call that belief close to delusional.’

He added: ‘Look at it from America’s point of view: Britain has much less to give than Europe as a whole did, therefore less reason for the United States to make concessions. You make more concessions dealing with a wealthy man than you do dealing with a poor man.

‘Second, Britain has no leverage. Britain is desperate. Britain has nothing else. It needs an agreement very soon. When you have a desperate partner, that’s when you strike the hardest bargain. The last thing you do is quit a job before you look for your new one.

Boris Johnson (pictured on a visit to a hospital in Lincolnshire yesterday) has said the UK will look beyond the EU for trade after Brexit

‘In the same way, establishing absolutely that, as a matter of sacred principle, you’re leaving Europe has to be the worst way to give you leverage with any new potential partners.’

He said it is ‘close to inconceivable’ that the UK would be able to increase its trade with the US enough to make up for lost trade with the EU.

US Senator Tom Cotton, however, said Britain should be at the ‘front of the queue’ for a trade deal with the US.

Mr Cotton told Today: ‘Many of my colleagues in the Congress would say that Great Britain should be in the front of the queue given everything our nations have gone through together.

‘Obviously it wouldn’t be a matter of days or weeks for such negotiations, it might be months, but I would suspect it would be months not years.’

Mr Raab said there was a ‘consistent warmth’ for Britain and a ‘desire to work more closely with us’ from 20 foreign ministers from across Asia-Pacific who he met during his visit to Thailand last week.