"It's understandable. But if this disagreement were to persist there will undoubtedly be a problem".
Japan's ambassador warned Thursday that its big companies - and others - would have to leave the country if trade barriers after Brexit wipe out their profit margins. "By asking to benefit from the advantages of the single market, of the customs union and common policies, the U.K must theoretically accept all the rules and obligations that these entail, until the end of the transition".
If the United Kingdom leaves the customs union, custom checks will have to be introduced on the border between Northern Ireland and the Republic of Ireland, which will become the EU's new external border.
Among the mass of agreements that Britain will now have to renegotiate with Brussels are those governing flights between Britain and the rest of the EU.
He is also said to have hosted a dinner for Conservative donors at his London home last week to discuss the issue, according to Financial Times sources.
Barnier said it was "important to tell the truth" that border checks between Northern Ireland and Ireland would be "unavoidable" if it left the single market and the customs union.
Barnier also voiced surprise at the U.K.'s objection to a fast-track process that Brussels has proposed for adjudicating any disputes over European Union rules that might arise during the transition - with the disputes essentially settled immediately in the EU's favor.
"Any solution must be precise, clear and unambiguous", explained Barnier.
LNPAfter the petition handover Mr Rees Mogg explained live on Sky News how he fully backed
Barnier said deep divisions remained on citizens' rights for European Union migrants moving to Britain during the transition, as well as the UK's ability to object to new European Union laws passed during the phase.
Barnier warned that the issue of Ireland's border could unravel the withdrawal agreement and the transitions period could be in doubt.
"Soros has also spent millions of dollars across Europe, trying to defeat populist candidates and movements that pose a threat to his globalist agenda", The Daily Caller noted.
He said his approach "not been in the least discourteous or vindictive".
Speaking to reporters at the end of a week of technical talks, Michel Barnier also said that Britain has still not outlined its vision of future EU-U.K. relations at virtually the half-way mark of the Brexit negotiations.
Britain wants third countries to continue their current treatment of it and has said it will seek the EU's help in persuading them to do so.
These include the EU's insistence that if Britain breaks the conditions of a transition agreement, the EU could respond with trade sanctions without having to resort to a lengthy European Court of Justice process.
The same document claims Britain's retail sector could be hit by a 20% rise in costs after Brexit - while auto makers could see a 13% rise in manufacturing costs outside the EU.
"This is a democratic and patriotic effort to recover our future and we welcome support for our efforts from many quarters", he said.