Chancellor Philip Hammond has pushed for a transitional deal with the European Union once Britain leaves the bloc, and is thought to be in favour of an European Economic Area-type system.
The Labour Party has also made clear it wants the UK to stay in the single market, continue free movement of EU citizens and continue to pay into the EU budget.
The EEA agreement allows non-EU countries Norway, Iceland and Liechtenstein to be part of the single market, which ties them to many of Brussels’ rules.
But Norwegian employers’ organisation NHO is worried the UK being part of the EEA would drastically change the dynamics of the countries in the group.
NHO international director Tore Myhre wrote in a comment: “It is not in our interest to be involuntary involved in Britain’s troubled relationship with the EU.”

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He pointed out that EEA member countries have to be in agreement before a directive is taken into national law, which he worries would become much more difficult if Britain was to join up.
Mr Myhre said: “If they want this as a transitional arrangement, they will not have the same long-term perspective as us.”
The director stated it is both in Norway’s and the UK’s interest if Britain were to stay in the single market.
However, he said the UK should use the EEA agreement as a model and then draw up its own deal which would not affect the EEA countries.
Last week, Norway’s EU minister Frank Bakke-Jensen visited London to meet with Brexit minister Baroness Anelay and Labour representatives.
Mr Bakke-Jensen said its “clear” the Brexit debate has changed.
He told Aftenposten: “This was also what we expected.
“If the British were to be interested in joining the EFTA and EEA agreements, we must consider this based on Norwegian interests.”
He said that, from what he could gather, the official policy of the British government was to leave the single market.
Mr Bakke-Jensen said: “And what I can see from Labour, it is a ‘EEA-like model’, which would not affect our agreement with the EU.”
According to a leaked letter, Labour has demanded the Government make substantial changes to the ‘Great Repeal Bill’ which would allow the UK to remain in the single market, customs union and the European Court of Justice post-Brexit.
The party’s deputy leader Tom Watson suggested “it might be a permanent outcome of the negotiations”.