The shadow foreign secretary has told Labour rebels their idea to keep the UK in the single market “will not work”.
But she said a “British bespoke deal” was needed instead.
The Labour leadership has been attacked by some in the party for not supporting a move in the House of Lords to keep the UK in the European Economic Area.
The European Economic Area (EEA) includes all the EU members and Iceland, Liechtenstein and Norway. These countries get full access to the single market while also making a financial contribution and accepting most EU laws.
Free movement laws also apply, so EU citizens can move to all EEA countries to work and live.
On Tuesday evening the House of Lords continues discussing the government’s EU bill and will vote on an amendment aimed at keeping the UK in the EEA.