So, where are we?

What has been agreed in Brussels?

Theresa May has been given the go-ahead for the next stage of the Brexit talks. The first phase dealt with the divorce bill, citizens’ rights and Northern Ireland. Phase 2 will be about trade between the UK and the EU and agreeing a transition period, extra time after we leave in March 2019, to implement that deal.

What happens now?

Trade negotiations will not begin until March next year. This is because the British government has yet to decide what sort of post-Brexit deal it wants. Brussels also needs to talk to the remaining EU27 countries to agree what deal it wants. Belgium, for instance, which has close trade links with the UK, will have different demands to Hungary or Slovakia.

What is the most likely option?

Theresa May wants a bespoke free trade deal based on the existing rules of EU trading. The EU says the UK’s demands are contradictory: we want to mirror EU rules and regulations but refuse to accept Brussels’ oversight. The most likely option will be a Canada-style deal, but that took seven years to negotiate and does not include financial services - the UK’s biggest sector.

Can we get a deal?

Time is short. EU Council President Donald Tusk said securing a trade deal is “realistic but dramatically difficult”. Trade talks will not start until March and will have to be wrapped up by October 2018 for the deal to be approved by the European Parliament. Theresa May also has to sell the deal to MPs, who now have a vote on the final agreement.

A pressing problem for the Prime Minister is the terms of the transition. Brexiteers are not happy we will have to abide by EU rules and accept freedom of movement until 2021.

And, during this time, we will not be able to strike new trade deals with other countries.