He said he thanked his EU counterpart for his “incredibly positive” and “helpful” comments. Reynolds add that Sefcovic’s tone was in keeping with what the government had already said about a “twin- track strategy” on trade.

“We can improve the terms of trade with the EU in a way which doesn’t revisit customs unions or single markets or the arguments of Brexit, and we can do that whilst pursuing closer trade links around the world,” Reynolds said.

Labour fought last year’s UK general election with a manifesto pledge to lower Brexit-related barriers and red tape for the export of food and farm products to the European Union.

The question has always been how deep such an agreement might be. It could be settled in the coming weeks, though firm decisions have not yet been made.

On Thursday the EU suggested to the BBC that complete eradication of barriers in the sector would be possible if the UK followed relevant EU rules and standards as they change, a process known as “dynamic alignment”.

Speaking to the BBC in Davos, Reynolds said that both ideas floated by Sefcovic – a fully fledged veterinary agreement with dynamic alignment and a pan-European customs plan – did not break the government’s red lines.

The Conservatives have voiced anger at reports of a potential new deal on UK-EU trade, with shadow foreign secretary Dame Priti Patel telling MPs that the government was “bending the knee to the EU”.

“These latest reports that the government might shackle us to the European Union are deeply concerning, and once again make clear that Keir Starmer and his chums are all too happy to put their ideology ahead of our national interest, no matter the cost,” she said.

But the Liberal Democrats have said the government is not doing enough to smooth trade with the EU.

Party leader Sir Ed Davey told the Commons: “It is time for a proper UK-EU customs arrangement so we can strengthen our negotiations with Donald Trump, cut the red tape on our businesses and grow the economy.”

Reynolds told the BBC he was preparing the UK’s case to avoid potential US tariffs on exports, after President Donald Trump suggested the world could have to pay trillions of dollars to access markets in America.