The EU has set out its draft guidelines for trade talks which warn that the U.K.'s current position on Brexit will result in "negative economic consequences."
Donald Tusk, the European Council president, circulated the draft Wednesday which noted that the U.K.'s current proposals to leave the EU would "limit the depth" of a future partnership between the two parties.
The guidelines rejected the possibility of full access to the EU's single market for crucial U.K. sectors such as finance and pharmaceuticals, stating there can be no "cherry picking" through participation based on a sector-by-sector approach.
"Being outside the customs union and the single market will inevitably lead to frictions," the document said. "Divergence in external tariffs and internal rules as well as absence of common institutions and a shared legal system, necessitates checks and controls to uphold the integrity of the EU single market as well as of the U.K. market … This, unfortunately, will have negative economic consequences," it said.