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The Brexit secretary said it would be a "more complicated, more difficult and less beneficial" option and the government wanted a separate transition deal.
Here is why people in both the Remain and Leave camps are urging Theresa May to sign Britain up to EFTA and the EEA.
Although Article 50 officially has 19 months to run, Britain only has 13 to 15 months to get a deal — and that makes the EEA the only practical deal available.
We 'efta look again at a bilateral agreement with the EEA.