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Brexit: EU rejects Theresa May’s trade plan and warns UK will suffer ‘negative economic consequences’

The EU has rejected Theresa May’s vision for post-Brexit trade relationship with the UK, laying out its own plans and warning that her choices will have “negative economic consequences” for Britain.

In draft negotiating guidelines unveiled on Wednesday, the bloc rules out the “mutual recognition” of standards between the UK and EU as proposed by the Prime Minister.

The guidelines say: “The European Council has to take into account the repeatedly stated positions of the UK, which limit the depth of such a future partnership. Being outside the customs union and the single market will inevitably lead to frictions.

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