EU's chief negotiator: Single market benefits not possible for United Kingdom after Brexit

People walk away from the entrance of the European Court of Justice in Luxembourg | John Thys  AFP via Getty Images

Firms such as Airbus in Flintshire face new "constraints" in moving parts and staff between its European sites, the EU's chief Brexit negotiator warned.

The UK's largest business group is calling on Britain and the EU to reach an interim deal to allow the country to stay inside the single market and customs union until a comprehensive Brexit agreement is ironed out.

He added that Britain could not expect to cherry-pick its ties with the European Union as many British politicians say it should. "Leaving either the single market or customs union will mean goods can not move freely across the borders", he said, recalling that the World Trade Organisation baseline rules would then have to be applied.

The single market's principles of free movement of people, goods, services and capital are indivisible, he said.

May has acknowledged Britain may need an implementation period to smooth its exit from the bloc, and business leaders have pressed her to push for Britain to remain within the single market until a final deal is negotiated.

He named the Airbus wings plant, which employs 6,000 at Broughton, Flintshire, as the type of operation which depended on integration with continental Europe.

The main employers ' organisation in the uk has asked Thursday to the negotiators of the Brexit to agree on a transitional agreement before march, 2019, in order to maintain the Uk within the single market and the customs union until a final agreement.

Speaking at the G20 summit in Hamburg, Mrs May has warned that Britain can not remain in the customs union post-Brexit if it wants to strike free trade deals with non-EU countries.

Brexit Secretary David Davis has promised a trade deal with Brussels which would deliver the "exact same benefits" as European Union membership but Mr Lidington said: "That will depend not just on us but on the European Union 27".

He went on, "In reality the "no deal" scenario would aggravate the lose/lose situation, which is a necessary effect of Brexit".

"Without a deal, United Kingdom business would face new paperwork requirements making trade more complicated and less efficient", she will say.

US President Donald Trump said he believed a deal could be done "very, very quickly" when he met Prime Minister Theresa May at the G20 summit in Hamburg on Saturday.

"You can not leave the single market and then opt into the sectors you like most".

"I want to preserve the Good Friday Agreement and the common travel area, and I want to find solutions with the Republic of Ireland and with the British authorities". Germany is a member of the European Union, however, and does not sign individual trade deals. I cannot see how both sides can accept any realistic deal that would also be acceptable to the EU27. The report, ' A New Outlook on International Trade', outlines the UK's £13.8bn worth of food and drink exports and how it must be protected.

In a lecture on Thursday evening at the London School of Economics, Carolyn Fairbairn, CBI director general, and Rain Newton-Smith, CBI chief economist, will say the prospect of serious disruption from a "no deal" scenario means businesses are already changing plans and slowing investment.

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