Barnier added that Prime Minister Theresa May might instead offer to join a customs union with the EU, although that would prevent London cutting its own trade deals with other countries.
Building on the government's devolution agenda for the Northern Powerhouse, the Prime Minister will also confirm that government will lay the legislation to formally conclude the North of Tyne Devolution Deal with Newcastle, Northumberland and North Tyneside.
"I think that would be a challenge, but one that I am up for", Raab told a parliament committee.
Gurr told The Guardian last month Amazon has invested £9.3 billion ($12.2 billion) in its United Kingdom operations since 2010.
Mr Raab insisted the new arrangements were aimed at ensuring a coherent approach.
"I do remember Prime Minister May saying that no-deal was better than a bad deal".
She said: "The number of job losses will depend on the amount of access that the sector continues to have and the amount of business it can follow up there". Those plans are ambitious, principled and pragmatic. "I think the United Kingdom has understood our concerns and respects our principles and the United Kingdom had promised to come back to us with concrete proposals on how to address our concerns".
European Union looks set to reject United Kingdom government's plans for the City of London post-Brexit.
The technology needed for the UK's customs plan in the white paper, in the unlikely event of a U-turn by Barnier, is not expected to be ready until 2022 at the earliest.
To avoid customs checks after Brexit, the government wants an unprecedented system, where the United Kingdom would collect European Union duties, while having the freedom to set different tariffs on goods destined for the British market.
Meanwhile, the Government published details of the legislation it plans to use to implement the withdrawal agreement taking the United Kingdom out of the European Union next March.
Speaking after talks with Mr Raab, Mr Barnier said that Theresa May's Brexit White Paper plan was a "real step forward".
Raab told a committee of MPs that May's statement simply confirmed that there is "one team, one change of command". "Now we're going to be wasting money on a whole department to prepare for the increasingly likely no-deal nightmare".
But the meeting comes as both sides of the negotiations step up plans to cope with a collapse in talks which would result in the United Kingdom leaving without a deal in March 2019.
Mr Raab repeated the government's intention to reach a deal for an European Union summit in October, to allow for the Withdrawal Agreement Bill to pass through parliament by early 2019.
"From the 30th March 2019 until the 31st December 2020, common rules will remain in place". Precise details will not be known until the withdrawal agreement is concluded.