The European Union is reportedly planning to offer the UK a much worse trade deal than its agreements with Canada, Japan, and other major trade partners.

The EU has warned member states that UK industry bodies should not be allowed to certify that British goods conform to EU standards after Brexit, according to the Telegraph.

The European Commission's position reflects concerns that the UK will seek to maintain access to the EU single market while diverging away on rules and regulations to gain an advantage.

Visit Business Insider's homepage for more stories.

The European Union is reportedly planning to offer the UK a trade deal with much worse terms than it agreed with either Canada, Japan, or other major international partners.

The European Commission, which will lead negotiations for the EU, has warned member states that UK industry bodies should not be allowed to certify that British goods conform to EU standards after Brexit, EU sources told the Telegraph.

The EU has granted this so-called Mutual Recognition Agreements with its other major trading partners in order to facilitate the movement of goods in key sectors including medicines and manufacturing.

However, the European Commission's is planning to block the UK from securing similar rights due to concerns that the UK will seek to move away from EU trade rules and regulations in order to gain a competitive advantage over its European neighbours.

Chancellor Sajid Javid has insisted that the UK will "not be in alignment" with the EU after Brexit.

Speaking in Brussels on Tuesday, he said: "We will not be in the single market, we will not be in the customs union. We will not be rule-takers," but added that the UK still hoped to sign "a deep and comprehensive free trade agreement" with the EU.

Brexit trade deal in 2020 just not possible'

EU Trade Commissioner Phil Hogan Reuters Boris Johnson has pledged to secure such a deal by the end of 2020 and insisted such an outcome is "epically likely," even legislating to ensure he cannot extend the negotiating timetable.

But EU negotiators have warned the prime minister has not given himself enough time to secure the deep trade deal he is seeking.

Phil Hogan, the new EU Commissioner for trade who will play a central part in negotiations, said last week that a full free trade deal was "just not possible" by the end of 2020.

"Certainly by the end of the year, we are not going to get everything that's in the 36-page document about the future relationship agreed," he told a panel at a Global Counsel trade conference in London.

"Prime Minister Johnson has decided that he wants to have everything concluded by the end of the year. It's just not possible," he said.