"We're in intense negotiations with the EU - we've made real progress," Truss said. "We want to get a good deal with the EU, a deal like they have with Canada, which we think is perfectly reasonable."

"We're making good progress on the negotiations," Truss said. "But if the EU aren't prepared to do a deal that allows the UK to retain its sovereignty, then we will go to Australia style terms, and I think that's perfectly reasonable."

(Reporting by Alistair Smout; editing by Guy Faulconbridge)