LONDON - Britain is unlikely to be in a position to leave the European Union institutions by 2021 and must prepare to extend the Brexit transition beyond the two years already planned, the chair of the Brexit select committee Hilary Benn has told Business Insider.
But Davis suggested that these deals should continue to be operative during what the Government refers to as the "implementation period".
According to a draft document setting out how the transition will work, the European Union will signal that a transition period extending beyond December 2020 may be possible.
Tony Blair has told Sky News he thinks it would be "deluded" not to realise that Brexit would "diminish Britain's position on the world stage".
Philip Hammond, who in the 2016 referendum voted to stay in the European Union, sought to allay investor concerns over Brexit turmoil by calling for arrangements that would ensure free and smooth trade and for the "closest possible future relationship".
But the more precise nature of the period between 2019 and 2021 is not that clear.
"There are people on both sides of this argument who do not support us in our intention to deliver the Brexit that the British people have mandated in a pragmatic way that protects British businesses and British jobs", he said.
But he is prepared for a clash with Brussels over the prospect of carrying out independent trade talks and potentially signing deals which would come into force once the transition period is over. This would be unlikely to satisfy hard-Brexiteers like Nigel Farage even if it eventually led to a loser arrangement post-transition.
The UK's representatives however will not be able to participate in the institutions.
Mr Davis said the Chancellor had simply been making the point that little would change during the transition period after Britain left the EU.
He also revealed that Britain would continue paying into the European Union during the transition period, potentially before all the details of the final deal have been agreed, but stressed that Britain would not pay to access the single market as part of the permanent deal. He spoke hours before the head of a hardline group of Brexiteer lawmakers urged May to stop accepting negotiating terms set by the EU.
"We will not be subject to the duty of honest cooperation, which is what stops us arriving at trade deals now, negotiating and signing trade deals now, so that freedom will exist".
Britain's Brexit Minister David Davis on Friday sought to reassure Eurosceptics that the United Kingdom will pursue an independent path in trade relations after Brexit, following remarks by the country's Finance Minister that aroused their anger.
"The value of the implementation period is strongly correlated to the speed at which political agreement is reached", he said.
Last month, ministers suffered a defeat on key Brexit legislation after a Tory rebellion saw an amendment, calling for a "meaningful" vote on any divorce deal, added to the EU Withdrawal Bill.
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