After ten months of planning, Davis will meet with the EU's Chief Negotiator Michel Barnier to agree the structure of the negotiations ahead, so officials have a framework within which to discuss substantive issues.
The negotiations come against the backdrop of an increasingly fractious political climate in the United Kingdom following the general election, and the fallout from the Grenfell Tower fire disaster.
The negotiations have been called the most complex in Britain s history as it unravels 44 years of membership and its threat to walk out with no deal in place has anxious European capitals.
Working groups will be set up to focus on three key areas - the status of EU citizens living in Britain and British citizens living in the EU; the divorce bill for Britain; and the future of the Northern Irish border with EU member Ireland.
"We will leave the customs union when we leave the European Union".
The EU insists that phase one of talks will focus only on the terms of withdrawal, and not on a future trade relationship.
Portugal frustrated by late Mexican equaliser at Confederations Cup
Portugal captain Cristiano Ronaldo insists there is no reason to be alarmed by their opening draw in the Confederations Cup . First, Portugal will take on group leaders Russian Federation in Moscow.
It comes after senior Whitehall sources told The Daily Telegraph that Mr Hammond was pushing for a deal where Britain could retain associate membership of the customs union, but retain the freedom to negotiate separate deals on trade services.
What that future relationship will look like remains anyone's guess.
It is also 82 days after Theresa May sent a letter formally notifying the European Council of Britain's intention to withdraw.
The SNP's Westminster leader Ian Blackford called for cross-party, cross-government talks.
Amid reports that May is set to make a "generous offer" on the rights of European Union citizens remaining in Britain, the source said London had been warned against doing so this week, on the grounds that it could drag up the thorny issue before talks had really got going. But the disastrous outcome of the June 8 snap election, which left her without a majority in the House of Commons, has raised doubts over whether she will even be able to see the two-year process through.
With Whole Foods, Amazon on collision course with Wal-Mart
Much more impactful is the reality that Amazon's technology could make grocery stores as we know them obsolete. Amazon poses a "real threat" to FreshDirect , Burt said, adding, "There's room for one more player".
Yet many in Brussels fear that London has no real strategy, with May under pressure at home, still trying to close a deal with a conservative Northern Ireland party to stay in power, and facing criticism for her handling of the aftermath of a devastating tower block fire.
Before the election, Ms May proposed a clean break from the European Union: leaving its single market, which enshrines free movement of people, goods, services and capital, and proposing limits on immigration and a bespoke customs deal with the EU.
But he warned that "we need to get there via a slope, not via a cliff edge".
Earlier, Mr Hammond told the BBC's Marr programme: "We're leaving the EU and because we are leaving the EU, we will be leaving the single market and by the way, we will be leaving the customs union".
A spokesman for the Department for Exiting the European Union said: "We believe that the withdrawal process can not be concluded without the future relationship also being taken into account".
Barnier says the two sides must reach agreement on a deal by October 2018, to give the European and British parliaments time to ratify the deal by Brexit Day in March 2019.
European Central Bank leaves base interest rates unchanged
While few expect that to happen, the words underline that the bank is not yet willing to call time on the stimulus program. The euro-area economy grew faster at the start of the year than previously estimated as domestic demand bolstered output.
- New Brand—Endless Opportunities
- India take on Pakistan in final of ICC Champions Trophy
- A quick look at the French Open
- Tower blocks of 60s and 70s could be torn down - London mayor
- Trump not under investigation in Russia probe, president's lawyer says
- Niantic Teases New Pokemon Go Features Are Coming Soon
- Basketball diplomacy in North Korea as U.S. student is released
- Deputy AG Rosenstein May Recuse Himself from Russia Investigation
- What's Next for House Leadership with Scalise Absent?
- Lead surgeon: United States congressman Scalise showing improvement after being shot