UK’s fox dismisses Brexit ‘divorce bill’ as absurd

London - Trade Secretary Liam Fox rejected as "absurd" the suggestion that the UK should be charged for leaving the European Union (EU), setting the stage for an early fight in the upcoming Brexit talks.

His comments come after former British envoy to the EU, Ivan Rogers, warned lawmakers of the "genuine" risk the UK will be handed over a divorce bill of as much as €60bn as talks drag on until the early to mid-2020s. Fox appeared to reject this possibility outright.

"The UK is using a legal power under the Lisbon Treaty freely entered into," Fox told a separate parliamentary committee on Wednesday. "Why should they then turn around and say we should pay?"

European Commission negotiator Michel Barnier has estimated a similar amount to settle past budget commitments. The sum would also include pension liabilities and spending on UK-based projects.

Haggling over such a bill could set an early tone for the Brexit negotiations and shape the final deal. If the British disagree on paying one, or its size, then the EU could retaliate by delaying talks over the UK’s future trading relationship with the bloc or the market-access it’s willing to offer.

An analysis released by Oxford Economics on Wednesday estimated the actual amount should be closer to €47bn, although it suggested the cost to the UK would be modest if the payments were staggered.

Still, it warned that a flat refusal to pay could trigger legal action by the EU in the International Court in The Hague.

"In practice, the final 'divorce bill' is likely to be closely related to the willingness of the EU to give the UK a favourable trade deal," wrote economist Martin Beck.

Fox also said the UK won’t push up tariffs after it leaves the EU. He promised to pursue an agenda of free trade, including opening talks with the US.