Chief EU negotiator Michel Barnier said on Friday that he had sent an "ambitious" first draft of what could be a new post-Brexit trade deal with Britain to EU capitals.
The European Union member states will now have to decide whether and how they want to modify Barnier's proposal, as he pursues his negotiations with London. But even if the Brussels veteran's text finds favour with MEPs and the 27 capitals, there are provisions that are unlikely to be acceptable to Number 10.
The draft - obtained by AFP - would ensure Britain does not diverge far from EU state aid, environmental, labour and quality standards, while trade will be overseen by a "Specialised Committee on the Level Playing Field."
But, in the case of any dispute over interpretation of EU law, the eventual deal's arbitration committee would have to defer "to the Court of Justice of the European Union to give a ruling on the question."
London has been adamant it will not sign up to any deal that gives the Luxembourg-based court jurisdiction over Britain.
If the draft is retained, the deal would also ensure both sides "authorise the fishing vessels of the other party to engage in fishing activities in its waters" according to agreed quotas.
Britain may welcome the draft's offer to negotiate quotas on an annual basis, a previous British demand, but London will insist on regaining full control over its coastal waters.
Prime Minister Boris Johnson's government says it wants a simple free trade agreement between "sovereign equals" and is prepared to sacrifice access to the EU market in exchange for freedom to write its own laws.
Barnier's draft includes a section on coordinating EU and UK foreign and defence policy, which it said would be presented to London "bearing in mind that the United Kingdom has expressed clearly that it does not wish to engage in negotiations on foreign policy matters."
Number 10 confirmed this, telling reporters: "We believe that there are ways of cooperating on external security and defence that don't require treaty obligations."
Next week's face-to-face round of EU-UK negotiations in London has been cancelled because of the coronavirus pandemic, but both sides are keen to press on. There is also an unspoken race to publish a comprehensive draft proposal as both sides seek to gain the initiative in a tricky months-long negotiation.
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