LONDON (BLOOMBERG) - Prime Minister Boris Johnson told the European Union he'll walk away from the negotiating table in June if it's not clear he's going to get a Canada-style free trade agreement for the country.

Britain's negotiating mandate for the next stage of Brexit, published on Thursday (Feb 27), was in many areas close to what the EU published on Tuesday.

The main differences were around how closely Britain has to stick to EU regulations - the so-called level playing field, how the deal will be structured and governed, and fishing rights in British waters.

"It is a vision of a relationship based on friendly cooperation between sovereign equals," the government said. "With both parties respecting one another's legal autonomy. The government will not negotiate any arrangement in which the UK does not have control over its own laws and political life."

The UK is setting a tough timetable for the negotiations, saying it wants the broad outline of an agreement by June, so the deal can be finalised by September. Britain will assess in June whether the talks are on course to succeed, and then decide whether to continue or to "focus solely" on preparing to leave the EU's regulatory orbit without a deal on Dec 31.

The pound fell after the document was released, erasing gains against the dollar and extending losses against the euro.

"We want the best possible trading relationship with the EU, but in the pursuit of the deal, we will not trade away our sovereignty," Cabinet office minister Michael Gove told the House of Commons on Thursday.

The competing British and EU documents show where the arguments will be.

The EU argues Britain's size and proximity means simply replicating the agreement with Canada is unreasonable. Britain argues that size and proximity aren't necessarily a factor in trade talks.

"Geography is no reason to undermine democracy," Cabinet minister Michael Gove told Parliament. "To be clear, we will not be seeking to dynamically align with EU laws, on EU terms governed by EU laws and EU institutions."

While the EU sees June as a stock-taking opportunity, it has said it will keep trying to get a deal until the last possible moment.

In another potential sticking point, Britain said it won't agree to EU institutions, including the bloc's Court of Justice, having jurisdiction in the UK.

To the EU, that marks a shift from the commitments Britain made in the Political Declaration, the non-binding part of its Withdrawal Agreement with the bloc.

Britain wants to have it own policy on subsidies and tax and by refusing to allow the European Court of Justice any jurisdiction in the country, it makes it harder, in the EU's eyes, for Britain to follow the bloc's state aid rules after Brexit.

The details of the British mandate show that, on financial services, it's not looking for a closer relationship than a non-EU country would expect. But it does want safeguards against the EU suddenly withdrawing the right for British financial services companies to trade in the bloc.