Alister Jack says "fragile" EU economy needs a free trade deal with UK

Alister Jack says EU chiefs will do a free trade deal

Mr Jack insisted that trade will "carry on" as normal with the EU under a "Canada-style" agreement with the EU which the UK Government is hopeful of reaching.

Mr Jack was appearing before MSPs on Holyrood's Europe committee this morning to discuss the impact of trade on Scotland of EU departure.

"We could carry on trading as normal," Mr Jack said of the proposed Canada-style deal.

EU chiefs has so far rejected the prospect of a Canada-style deal, insisting Britain's proximity to the UK mainland would make it impractical.

But Mr Jack added: "Proximity I don't think has anything to do with it. I've heard them make that remark, but that's just a negotiating position.

He added; "This is absolutely within the EU's interests. We have a massive trade deficit with them. The EU financial zone, you look at the levels of debts in nations there, it is fragile.

"Italy's debt is 2.7 trillion (euros) and rising and on it goes.

"They need to carry on free trade with us - it's absolutely imperative.

"And Germany, who are our biggest trading partner, it's imperative that we don't stop free trade with Germany because it's in Germany's interests.

"They're after all the country that's actually financing the EU. "

The UK also buys more German cars and white goods than any other EU nation, he added.

The UK's Government's red lines are that it will not trade away British fishing rights after coming out of Common Fisheries policy and not to align to EU rules and regulations, as well as withdrawing from the auspices of the European Court of Justice.

Although the UK formally left the EU at the end of January this year, the country remains in a transition period where all the EU rules and regulations still apply. This expires at the end of the years and the UK Government has said if no trade arrangement is agreed by then, it will walk away with no deal.