The minister’s comment prompted anger from the Liberal Democrat leader Sir Ed Davey, who recently called for the UK to join a new customs deal with the EU, allowing tariff- free trade between the two blocs.

It would also restrict the UK’s ability to strike trade deals with other countries.

Sir Ed accused the government of an “act of economic negligence,” adding: “It is alarming that the government is happy to negotiate with China but won’t even look at a better trading arrangement with our closest neighbours in Europe.

“It is time for a proper UK-EU customs arrangement so we can strengthen our negotiations with Donald Trump, cut the red tape on our businesses and grow the economy.”

Conservative shadow foreign secretary Dame Priti Patel accused Labour of “bending the knee to the EU”.

“These latest reports that the government might shackle us to the European Union are deeply concerning, and once again make clear that Keir Starmer and his chums are all too happy to put their ideology ahead of our national interest, no matter the cost.”

Raising the subject in the House of Commons, Conservative MP, John Cooper, said joining the Pan-Euro-Mediterranean Convention would turn the UK “once again into rule-takers and not rule-makers”.

He asked Thomas-Symonds to rule out signing up to an agreement that could see the UK “taking EU rules” and instead “strike out in the world and do new deals with America and around the Pacific-Rim”.

The minister replied that it was not a “binary choice” and the government would not “choose between allies. We look to deepen all our relationships.”

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