Theresa May has set out what she called "hard facts" about leaving the European Union, as she outlined her hopes for a future economic partnership....
"We are leaving the single market, life is going to be different," she told an audience at London's Mansion House.
Access to each others markets would be "less than it is now," she acknowledged.
But she added that the "jurisdiction of the European Court of Justice in the UK must end".
Mrs May acknowledged there would be "ups and downs" and, as in any negotiations, everyone would "not get everything they want" but said the UK and EU had "a shared interest in getting this right, so let's get on with it".
The prime minister started by setting out five "tests" for the negotiations and pledge to "bring our country together".
She said both sides needed to accept that "neither side can have exactly what we want" but she was confident that an agreement can be found.
'Work together'
The deal on access to each other's markets had to be on fair terms - with the need for "binding commitments".
"For example, we may choose to commit some areas of our regulations like state aid and competition to remaining in step with the EU's," she said.
She said the UK wanted the freedom to negotiate trade deals, control of laws and "as frictionless a border as possible" with the EU but said any disputes about the future relationship could not be ruled on by "the court of either party".
On the Northern Irish border, Mrs May rejected suggestions the UK could decide alone not to impose a hard border with the Republic of Ireland: "It is not good enough to say 'we won't introduce a hard border; if the EU forces Ireland to do it, that's down to them'.
"We chose to leave; we have a responsibility to help find a solution. But we can't do it on our own. It is for all of us to work together."
But she also said the EU would have to accept some "hard facts" as well, saying: "The [European] commission has suggested that the only option available to the UK is an off-the-shelf model."
"But, at the same time, they have also said that in certain areas, none of the EU's third country agreements would be appropriate."
With a growing clamour for clarity over Brexit today was a major test for Theresa May.
Not only whether she could keep the various elements of her party onside, but crucially whether she could convince counterparts in Brussels that she had a plan rooted in reality.
Hence her talk of hard truths - her warning that in this negotiation neither side would get everything it wants.
Mrs May was sending a message to those - not least her own backbenchers - who've been piling on pressure in pursuit of their version of Brexit.
She talked of pragmatism and common sense; no doubt a message for those on both sides of the Channel.
There was sweeping vision; regaining control and respecting the referendum result; but she also signalled willingness to compromise which won't play well with some.
The real test will be whether this speech was enough to convince critics that Mrs May's ambition for Brexit is credible an
The prime minister called for a free trade agreement covering most sectors of the economy, going further than the deal signed between Canada and the EU but stopping short of Norway which is a member of the European Economic Area.
"We need to strike a new balance. but we will not accept the rights of Canada and the obligations of Norway," she said.
Amid criticism from the EU that the UK was attempting to "cherry-pick" the best parts of the bloc's rules, she said: "The fact is that every free trade agreement has varying market access depending on the respective interests of the countries involved.
"If this is cherry-picking, then every trade arrangement is cherry-picking."
'Financial regulation'
The prime minister also said the UK wanted to investigate remaining part of the European Medicines Agency, the European Chemicals Agency, and the European Aviation Safety Agency - in return for abiding by their rules and "making an appropriate financial contribution".
And she said the UK would commit to keeping its regulatory standards "as high as the EU's" to ensure smooth trade and that while UK law may not be "identical" to EU law "it should achieve the same outcomes".
In some cases "Parliament might choose to pass an identical law" amid exporters' demands for a single set of regulatory standards.
The UK is due to leave the EU on 29 March 2019 but it wants a transition period lasting around two years after that, intended to smooth the way to the future post-Brexit relationship between the UK and the EU.
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