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Brexit: Theresa May to discuss end deal with ministers Ministers meet to thrash out Brexit end deal
(about 3 hours later)
Theresa May is due to meet her "Brexit cabinet" - about a dozen of her most senior ministers - to discuss for the first time what the UK's future relationship with the EU should be. Theresa May and her senior ministers are to formally discuss for the first time what the UK's long-term relationship with the EU should be.
The PM will later tell MPs the UK wants to sign trade deals during what she calls an implementation period. The EU has agreed that Brexit negotiations can now move on to discussing the UK and the EU's future relationship.
EU leaders have agreed talks can move on, including to discuss a transition deal for a post-Brexit period. Until now they have only been discussing "divorce" issues like how much money the UK owes.
Labour has raised concerns that trade may not be discussed for months. Not everyone agrees how closely aligned the UK should stay to EU trade rules.
The EU has published its guidelines for phase two of the negotiations, with discussions on long-term future economic co-operation not likely to begin until March - although "internal preparatory discussions" on future relations can take place before then. The UK voted to leave the European Union in June 2016 and Brexit is due to happen at 23:00 GMT on 29 March, 2019.
'Shared market approach' The full cabinet will hold another discussion on Tuesday.
Mrs May will tell MPs that the guidelines point to the "shared desire of the EU and the UK to make rapid progress on an implementation period". BBC assistant political editor Norman Smith said there was a "clear divide" between ministers, with some like Chancellor Philip Hammond and Home Secretary Amber Rudd calling for the UK to stick closely to the EU's single market to preserve access for British firms.
She will say during the temporary period the UK would "not be in the single market or the customs union". On the other side others, like Foreign Secretary Boris Johnson and Michael Gove, want more divergence so the UK has more freedom to strike its own trade deals with other countries.
But the UK would propose "that our access to one another's markets would continue as now, while we prepare and implement the new processes and new systems that will underpin our future partnership". The EU's chief negotiator Michel Barnier has said there is "no way" the UK will be able to select just the good bits of all the possible arrangements.
The EU's guidelines say the UK will "continue to participate in the customs union and single market" during the transition. "They have to face the consequences of their own decision," he said.
One suggestion for a future deal, from the centre left think tank the IPPR, is a so-called "shared market approach". What happens in the meantime?
It would see the UK and EU continuing the regulatory alignment that exists today, and the formation of a new customs union similar to the existing one. After the UK leaves the EU in March 2019, but before the final "end state" is reached, the government wants a temporary "implementation period" of about two years.
The group believes that such a model would aim to keep the benefits of the single market while allowing divergence from EU rules over time. This is what negotiations are expected to focus on in the coming weeks.
However, Michel Barnier, the EU's chief Brexit negotiator, has said there was "no way" the UK will secure a bespoke deal with the EU. Later in the House of Commons - from about 15:30 GMT - Mrs May will tell MPs she wants "access to one another's markets" to continue "as now" during this period.
He told Prospect magazine "there won't be any cherry picking" to "accommodate their wishes". The UK will also negotiate, and "where possible" sign trade deals, which would kick in after the end of the implementation period, she will say.
'Extremely tight' She will also say that during this period the UK will register people arriving from the EU to prepare for the new border controls promised after Brexit.
On Monday, Ms May will tell MPs: "We will prepare for our future independent trade policy by negotiating - and where possible signing - trade deals with third countries, which could come into force after the conclusion of the implementation period." The EU's negotiating position makes clear that it expects the UK to observe all of its rules - including on freedom of movement - and accept the jurisdiction of the European Court of Justice during the implementation, or transition, period.
Labour's shadow international trade secretary Barry Gardiner has said it would be a "real problem" for business if the EU did not start talking about trade until March. Labour's shadow international trade secretary Barry Gardiner has said it would be a "real problem" for business if, as expected, the EU did not start talking about trade until March.
He has also said Labour would not put a time limit on a post-Brexit transition phase, because the expected two-year period would be "extremely tight".He has also said Labour would not put a time limit on a post-Brexit transition phase, because the expected two-year period would be "extremely tight".
Writing in two of the Sunday newspapers over the weekend, Mrs May vowed she would "not be derailed" from securing an "ambitious" deal. A video guide to Brexit
The prime minister lost in the Commons last week when MPs - including 11 from her own party - voted to give Parliament a legal guarantee of a vote on the final Brexit deal struck with Brussels.