Brexit: EU trying to 'blackmail' Britain, says Trade Secy Liam Fox

The International Trade Secretary issued the warning as negotiations stalled during the latest round of crunch talks in Brussels and expressed frustration at the European Union's wish to first agree a financial settlement for when the UK leaves the bloc.

The EU's chief negotiator Michel Barnier insisted that Britain wants an "impossible" Brexit deal and there has been little progress on key issues, despite Brexit Secretary David Davis saying the "high-stress week" of negotiations had delivered "some concrete progress". Speaking during a trade trip to Japan, Fox told ITV News: "We can't be blackmailed into paying a price on the first part. "We think we should begin discussions on the final settlement because that's good for business, and it's good for the prosperity both of the British people and of the rest of the people of the European Union." Business leaders across Europe want clarity on the shape of the final deal, Fox later told Sky News. He said: "I think there is frustration that we have not been able to get on that longer-term issue, that we're stuck on this separation issue and we're not able to get onto the issues that will matter in the longer term for the future prosperity of the UK and the people of Europe."

Davis appeared to take a more positive stance than his Tory colleague as he prepared to tell business leaders in Washington DC that he was a "determined optimist" about the Brexit negotiations

The Brexit Secretary is due to deliver a keynote speech on Friday to the US Chamber of Commerce, where he will give assurances that Britain will remain outward looking after leaving the EU. He was expected to say: "I am a determined optimist.

"Because I fundamentally believe that a good deal is in the interests of both the UK and the EU and the whole of the developed world." It comes as a cross-party group of MPs also warned that leaving the customs union could cost £25 billion a year.