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The European Union demands that Britain make "sufficient progress" on its withdrawal from the EU before talks on a trade deal can start as it lays out its tough Brexit negotiating plans. Video provided by AFP Newslook

Donald Tusk, President of the European Council speaks during the joint press conference with Maltese Prime Minister Joseph Muscat (not in picture) at the Auberge de Castille in Valletta, Malta, March 31, 2017.(Photo: DOMENIC AQUILINA, EPA)

LONDON The European Union laid out itsnext steps for negotiatingBrexit on Friday,suggesting that talks on a new free trade agreement could begin even before the United Kingdomleaves the bloc.

European Council PresidentDonald Tusk said he will propose the draft negotiating guidelines to the leaders of the 27countries that will remain in the EU when Britain leaves. Theleaders, who will meet at a summit on April 29, must approve the proposals.The EU and Britain have two years to negotiatethe terms of Brexit.

The draft guidelines suggest discussions on a new trade agreement after Britain exits the single market which allows EU members to trade with each other without restrictions could begin within two years.

"The British government has indicated that it will not seek to remain in the single market, but would like to pursue an ambitious free trade agreement with the European Union. Based on the Union's interests, the European Council stands ready to initiate work towards such an agreement, to be finalised and concluded once the United Kingdom is no longer a Member State,"the draft document says.

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The United Kingdom formally began its exit from the bloc on Wednesday. Tusk had 48 hours to respond to the notification of withdrawal.

Our duty is to minimise the uncertainty and disruption caused by the UK decision to withdraw from the EU for our citizens, businesses and Member States, Tusk said in a statement Friday. As I have already said, in essence it is about damage control.

Brexit by the numbers as the process begins. Video provided by TheStreet Newslook

The proposal saysthat the status of EU citizens living in the U.K. must be settled;a legal vacuum for companies once EU laws no longer apply to the U.K. must be prevented;the bloc must ensure that the U.K. honors its financial commitments and liabilities; and a hard border between Northern Ireland and the Republic of Ireland must be avoided.

After more than 40 years of being united, we owe it to each other to make this divorce as smooth as possible, Tusk tweeted.

A majority of Britons voted to leave the EU at a referendum in June. TheU.K. joined the alliancein 1973.

These are draft guidelines and we look forward to beginning negotiations once they have been formally agreed by the 27 member states," aU.K. government spokesman said Friday.

It is clear both sides wish to approach these talks constructively, and as the Prime Minister said this week, wish to ensure a deep and special partnership between the UK and the European Union.

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European Union lays out draft Brexit guidelines