The European Union is demanding a potential veto on Britain's post-Brexit laws and regulations to be inscribed in the trade agreement, The Times reported on Saturday, citing senior government officials.
According to the newspaper, the UK's chief negotiator Lord Frost has dismissed this approach.
Since the negotiations have been hampered by Britain insisting on full autonomy after the divorce, the possibility of a no-deal Brexit is looming ahead as both sides have blamed each other for the lack of progress in the previous seven rounds. According to the negotiators, the sticking points include access to fishing waters, the arbitration of legal disputes, and the so-called level playing field, the set of common rules and standards that prevent unfair trade competition.
The eighth round of trade talks between the UK and the EU is due to begin in London on Monday.