Brexit: Businesses warned over friction at borders as government eyes Canada-style trade deal

'That may mean that when it comes to trading with Europe there are some bureaucratic processes', says Gove

Michael Gove has warned businesses they will face greater friction at borders with some "bureaucratic processes" in post-Brexit trade with Brussels as the government gears up for the UK's future outside of the EU.

In a frank admission, the Chancellor of the Duchy of Lancaster said it would be impossible to secure fully frictionless trade with the EU without accepting its rules and laws, which the government is determined to avoid.

As the UK prepares to leave the EU at 11pm on Friday, attention on both sides of the Channel has shifted to the all-important trade talks which are likely to dominate the rest of the year.

Boris Johnson has set himself on a collision course with Brussels by refusing to extend the transition period to hammer out an agreement beyond December - allowing himself only 11 months to negotiate a deal that traditionally takes years to secure.

He is said to be eyeing a basic trade deal similar to Canada's agreement with the EU, a model which was rejected by Theresa May in favour of a bespoke agreement.

Mr Gove made it clear that the UK was interested in a Canada-style agreement and said businesses may need to brace themselves for added checks as the UK could diverge from EU standards.

Asked if he could guarantee frictionless trade, Mr Gove told BBC Breakfast: "No. We want trade to be as frictionless as possible but the EU is clear that you can only have fully frictionless trade if you accept all their rules, you accept all their laws, you are subordinate to their judges, you are subordinate to their political structures.

"We voted to be independent. We want to have as close as possible a relationship with the EU and the approach we want to take is based on the relationship they have with Canada."

He added: "That may mean that when it comes to trading with Europe there are some bureaucratic processes there that aren't there now but we will do everything possible to minimise the friction in terms of our economy."

It comes as the three presidents of EU institutions warned the government the nature of the future relationship would hinge on decisions to be taken in the transitional period, that "every choice has a consequence".

In a symbolic move, Mr Johnson will chair a meeting of his cabinet in Sunderland, the city which was the first to back Brexit when results were announced after the 2016 referendum.

And in what No10 billed as an "address to the nation" an hour before the moment the UK leaves the EU, Mr Johnson will attempt to sound an optimistic note about the future and promise to heal the divides which have been caused in the bitter Brexit battles.

He will say: "Our job as the government - my job - is to bring this country together and take us forward."

He will call Brexit "the moment when the dawn breaks and the curtain goes up on a new act".

"It is a moment of real national renewal and change.

"This is the dawn of a new era in which we no longer accept that your life chances - your family's life chances - should depend on which part of the country you grow up in."