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EU fishermen could still have access to British waters after Brexit , Chancellor Philip Hammond admitted.

He said the government would be open to negotiating “reciprocal access” for EU trawlers to fish in our waters as part of a future trade deal.

And the Tory chancellor signalled Britain could still crash out of the EU without a deal if the negotiations don’t come up with an arrangement that is “fair and balances the interests of both sides.”

He said: “Fishing is an iconically important British industry, and we’re very clear that we’re taking control of our waters.

(Image: REUTERS)

“But of course we will be open to discussing with our EU partners the appropriate arrangements for reciprocal access for our fishermen to EU waters and for EU fishermen to ours.

“We would negotiate the basis on which such an arrangement would be fair and appropriate for us.”

In a speech at HSBC’s headquarters in London’s Canary Wharf financial district, he insisted it would be essential to include financial services in a trade deal - something Brussels have said was out of the question.

He said: “Given the shape of the British economy and our trade balance with the EU27, it is hard to see how any deal which didn't include services could look like a fair and balanced settlement.

"I'm clear not only that it is possible to include financial services in a trade deal, but it is very much in our mutual interests to do so."

(Image: Getty)

EU negotiating guidelines, published yesterday said Britain would be treated the same as any other third party country when it comes to banking and financial services.

Hammond said: “The EU is a very skilled negotiator. They’ve done this many times. Not precisely this, but they’ve negotiated agreements with many countries.

They’re very skilled, they’re very disciplined in the way they carry out their negotiations.

“And it doesn’t surprise me remotely that what they’ve set out this morning is a very tough position.

(Image: REUTERS)

That’s what any competent, skilled and experienced negotiator would do.

But he said he expected a “deep and constructive” engagement with Brussels.

He added: "It doesn't surprise me that their position in their guidelines is 'we would like a great deal of the thing that, clearly, the British will be reluctant to concede' and very little at all on offer of the things that the British will regard as most important.

"That is probably not a bad opening strategy for anyone engaged in a negotiation process, and I do think you have to see this as a negotiating strategy."