The European commissioner for finance has revealed the EU would be "open-minded" about closer ties with the UK - including the possibility of forming a customs union.
Valdis Dombrovskis confirmed to the BBC that the EU was "ready to engage" if the UK wanted to explore the move.
His comments came following a meeting with ministers including Rachel Reeves, further revealing the majority of food checks between the UK and the bloc could be removed.
The productive meeting also resulted in Dombrovskis reopening the door for Britain to potentially join the EU's £130billion defence loans scheme. Talks on the issue had previously broken down last year without an agreement being reached.
At the meeting in London, Reeves made the case that a closure relationship between the UK and EU was important as "we are sliding towards a world where the rules are less clear".
Asked if Brussels would be open to talks on Britain rejoining the customs union, Dombrovskis told the BBC: "I cannot jump to conclusions, but I can say that we are ready to engage with an open mind and seek those areas of cooperation."
A customs union would remove barriers to trade by slashing tariffs or taxes on some or all goods between the UK and the EU.
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