He said unlike with the trade of goods, services are about ensuring common rules, common supervision and common enforcement and that is why free trade agreements do not have detailed rules for financial services.
In his keynote speech, Hammond will "address the sceptics who say a trade deal including financial services can not be done", according to excerpts of the address released by his office on Tuesday. And, as Philip Hammond, the chancellor, said in a speech soon after Mr Tusk published his guidelines, both sides would benefit from mutual trade in financial services.
The dossier, which lays out the EU's position on trade for the first time, actively encourages the prime minister to drop her red lines.
In 13 pages, the resolution, prepared by the Guy Verhofstadt team, the Chief Negotiator on behalf of the EP on the topic of Brexit, recommends an "associated agreement" between the European Union and the UK. Financial services can not be in a free trade agreement, for many reasons, for reasons of stability, for the sake of supervision because there are some very specific rules for financial services.
The current draft "has omissions and overreaches", Foster told reporters in Brussels on Tuesday after meeting with Michel Barnier, the EU's chief Brexit negotiator. "But services are not about tariffs", he said in Dublin.
He has also maintained that the thorny issue can best be handled as part of future talks on Britain's trading relationship with the EU.
However, he also said there could be "no winners" on Brexit, and that any agreement would be the first one to "loosen economic ties instead of strengthening them".
"In order to break the deadlock we now face, I believe it is important that the UK Government now seriously considers engaging with the European Parliament's proposal for an association agreement, as catered for by Article 217 of the EU Treaty".
Noting that the European Union had proposed a special arrangement to avoid a border between Ireland and Northern Ireland, the document adds: "Such a selective, and lean version of the internal market is not on offer for the U.K.as a whole".
But he added he expected Britain to get an agreement similar to what it has been asking for.
"We will not be buffeted by the demands to talk tough or threaten a walk-out", she said.
To sum up, we will enter the negotiations of the future relations with the United Kingdom with an open, positive and constructive mind, but also with realism. It said any new deal with Britain would likely make trade more complicated and costly than it is today.