How will Britain trade after Brexit?

  • Video report by ITV News Political Correspondent Paul Brand

As the first phase of the UK's Brexit negotiations are agreed by EU leaders, talks now turn to trade.

There are existing trade models Britain could opt for after Brexit, such as Norway's. They have tariff-free trade with the EU with goods and services, and no real border.

But this would mean the UK staying in the single market, accepting freedom of movement, make payments to the EU budget and be restricted in striking trade deals with other countries.

The British government seem to be leaning more towards a deal like Canada's, but this agreement mostly applies to goods, not services, which make up about 80% of the UK economy.

Which ever way the government turns, there is a great at stake. Some experts predict trade with the EU could fall by a quarter, or perhaps more, which would have a very serious impact on the UK economy.