AT A GLANCE

Customs

Britain would leave the EU’s ‘common external tariff’, allowing parliament to set its own tariff rates. This was a key demand from Brexiteer ministers. Sources said British tariffs would apply to 96 per cent of imports. For a small proportion of ‘unfinished goods’ destined for the EU, the UK would apply EU tariffs and collect them on Brussels’ behalf. EU tariffs would also apply to goods that simply transit through British ports.

Regulation

UK would agree to maintain ‘full regulatory alignment’ with Brussels on goods. This was demanded by Business Secretary Greg Clark and Chancellor Philip Hammond as vital for ‘frictionless trade’. But many Eurosceptics believe it would wreck hopes of new trade deals. Parliament would retain a fig leaf of control with the ultimate ability to tear up the deal but this would come at the price of losing trade access.

Immigration

THE PM told MPs that ending free movement remains a red line in negotiations. But some ministers are pushing her to trade access to the British jobs market for access to Europe’s single market.

Trade

Mrs May said that the deal would allow the UK to set an ‘independent trade policy’, allowing Britain to slash tariffs on imports as part of new deals. But it is far from clear that Brussels would agree to a deal that would allow the UK to be a low-tariff island with full access to EU markets. Pro-Brexit MPs say that without the freedom to change rules, the prospects for new trade deals may be slim.