The EU announced Friday it will work on a post-Brexit free trade agreement modelled on the bloc's deal with Canada, saying Britain's insistence on leaving the single market and customs union left no alternative.

"It's not us, it's our British friends who are giving these red lines which close certain doors. So it will be on this model that we will work," EU negotiator Michel Barnier said after a hard-won agreement on divorce terms that was sealed in Brussels.