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Labour tonight unveiled its latest bid to shape Brexit, demanding full single market access.

The party published amendments to the flagship EU (Withdrawal Bill), which returns to the Commons on Tuesday.

In a softening of its position, Labour calls for common minimum standards, rights and protections with Brussels, and “full access to the internal market of the European Union, underpinned by shared institutions and regulations”.

The party still rules out membership of the European Economic Area - an option many of its backbenchers, such as one-time leadership hopeful Chuka Umunna, want left on the table.

But the fresh move will be seen as an attempt to quell a potential backbench rebellion over the EEA, which threatens to embarrass Jeremy Corbyn .

(Image: AFP)

It is understood Labour MPs will be ordered to abstain in a crunch vote on EEA membership.

The UK would still quit the European Court of Justice, with a new arbitration panel set-up between the UK and EU to settle disputes.

Labour would not sign up to freedom of movement - a key pillar of single market membership - and wants to negotiate a new deal on migration.

Instead, it wants a new “comprehensive” customs union - a clear dividing line with the Conservatives.

Theresa May has insisted the UK will leave the existing customs union and not join a new one.

(Image: AFP) (Image: PA)

Shadow Brexit Secretary Sir Keir Starmer said: “Labour will only accept a Brexit deal that delivers the benefits of the single market and protects jobs and living standards.

“Unlike the Tories, Labour will not sacrifice jobs and the economy in the pursuit of a reckless and extreme interpretation of the referendum result.

“Existing single market agreements that the EU has negotiated with third countries, including Norway, are bespoke deals negotiated with the EU to serve the best interests of those countries.

“We need to learn from them and negotiate our own more ambitious agreement, which serves our economic interests and which prevents a hard border in Northern Ireland.

“Two years on from the referendum it is clear that the Government has no plan for how it will protect jobs and the economy, and guarantee no hard border in Northern Ireland.

“Labour’s amendment, along with a commitment to negotiate a new comprehensive customs union with the EU, is a strong and balanced package that would retain the benefits of the single market.

“Parliament should have the opportunity to debate and vote on it.”

(Image: Getty Images Europe)

Labour MP Chuka Umunna, of the Open Britain campaign, said: “The only way of realising the objectives set out in the amendment, short of EU membership, is through the UK being part of the European Economic Area, as a minimum.

“Like the Tory Government and hard Brexiters this amendment seeks 'access' to the EU's Single Market but this is nowhere near enough.

“What the overwhelming majority of Labour members and supporters want is so much more - to be part of the framework of protections for workers, consumers and the environment which being part of the European Economic Area uniquely offers to non-EU members.

“All the way through the passage of this Bill, the only amendments which have commanded support on both sides of the House and passed are cross party backbench ones.

“So, if we are serious about ‘protecting full access to the internal market of the EU’ and ensuring ‘no new impediments to trade’, logic dictates Labour MPs should be whipped to support the cross party EEA amendment sent to us by the House of Lords.”