It’s been billed as the biggest and most ambitious shake-up in the EU’s economic ties since its reunification.
The EU will begin implementing a deal with the UK on the terms of a trade deal with it that could bring tens of billions of euros of trade between the bloc and the United States, Europe’s biggest trading partner, in the next year.
Its Brexit bill, which was approved by Parliament last month, is expected to include a raft of measures that could benefit British exporters, including a plan to increase trade with Europe, with the aim of raising $1.7bn in investment by 2021.
The agreement between the two sides will also see an increased number of goods shipped from the EU to Britain.
“We’re making it clear that this is going to be the biggest change to the UK-EU relationship since the end of the Cold War,” Brexit minister Liam Fox told MPs on Wednesday.
He said the EU would increase trade at the pace of 1.8 percent of GDP a year and would be ready to trade with Canada and Australia.
The deal will also be subject to a public vote, with Brexit campaigners arguing it would be the best possible way for the UK to leave the EU.
A government spokeswoman said: “We’re also making clear that we will not accept the agreement until it is approved by the British people, and we will continue to engage with the European Union and the European Commission to ensure that this deal is the best deal for the United Kingdom and its people.”
The Government is expected have the final say on any changes to the deal.
Mr Fox also confirmed that Britain will need to pay £100m a year to the EU as part of the deal, which is a significant increase on the £30m that the EU had agreed with Britain.
He also said that Britain would have to maintain an additional two million workers in the UK by 2021, a number that would make Brexit a drag on the economy.
The UK is expected also to pay around £400m in the first year after the deal is implemented, but Mr Fox said the money would be paid over a five-year period.
The Government’s plan is to increase British exports by 1.2 percent of economic output a year in 2021 and then 3 percent by 2021-22.
The British government said it would continue to increase exports, but it would also reduce tariffs.
Britain will need £2.3bn to pay the EU in 2020 and £3bn by 2021 to meet its £1.9tn Brexit bill.
The £1,100-a-head rate would be phased out over five years, from 2019.
Mr Tory said the Government was committed to the principle of trade and said Britain would continue its access to the European single market.
“There is no doubt that the Government will have to renegotiate this deal, but this is a negotiation that the British public are demanding,” he said.
“The Government has an enormous amount of confidence in the European Parliament and the UK Parliament.”