BRITAIN TO BECOME SINGLE TRADING NATION WITHOUT BRUSSELS DEAL

New policy papers on post-Brexit trade and customs arrangements were released as the Prime Minister told MPs that "real and tangible progress" was being made in crucial talks over the UK quitting the bloc.

The trade white paper confirmed Britain will not be able to bring into effect any free trade agreements with other countries during the time-limited transition period sought by Mrs May.

Instead it will "pursue" trade negotiations with other countries during the transition, which the Government expects to last around two years.

Legislation will also be introduced to "transition" all existing EU trade agreements and preferential arrangements with other countries into domestic law after leaving the bloc.

This will help maintain "the greatest amount of certainty, continuity and stability in our trade and investment relationships for our businesses, citizens and trading partners", the white paper said.

The Trade Bill will also include a trade preferences scheme which will "as a minimum" provide the same level of duty-free access to the UK market for developing countries to reduce poverty, and establish a trade remedies framework.

The Customs Bill will legislate for a new "stand alone" customs regime after Brexit, regardless of any deal with the EU.

It will also amend the VAT and excise duty regimes so that they can continue to function effectively once the UK has left.

Mrs May said the new white papers "pave the way for legislation to allow the UK to operate as an independent trading nation and to create an innovative customs system that will help us achieve the greatest possible tariff and barrier-free trade as we leave the EU".

She also told the House of Commons that Brussels must show "flexibility" ahead of a crunch meeting of the European Council next week.

Leaders of the 27 remaining nations will decide whether "sufficient progress" has been made on the divorce deal to move on to the second phase.

In a statement to MPs, Mrs May said: "A new deep and special partnership between a sovereign United Kingdom and a strong and successful European Union is our ambition and our offer to our European friends.

"Achieving that partnership will require leadership and flexibility, not just from us but from our friends, the 27 nations of the EU.

"And as we look forward to the next stage, the ball is in their court, but I'm optimistic it will receive a positive response, because what we are seeking is not just the best possible deal for us, but I believe that will also be the best possible deal for our friends, too."

Labour leader Jeremy Corbyn hit out at the UK leader and said: "Sixteen months on from the referendum, no real progress has been made."

The announcement came after the European Commission's chief spokesman insisted that further compromise was needed from the UK in order to move on to a second phase of talks, dealing with the future trade relationship.

Margaritis Schinas told reporters: "There has been so far no solution found on step one, which is the divorce proceedings, so the ball is entirely in the UK court for the rest to happen."