Britain will seek discretionary control over immigration and lawmaking and reject compulsory contributions to the European Union budget when negotiating its future relationship with the bloc, ITV reported, citing an unidentified government official.
Those conditions make it unlikely that Britain will be able to remain a full member of the single market, ITV’s political editor Robert Peston said in a public post on Facebook. Brexit Minister David Davis is instead working on an agreement modeled on the deal the EU is close to completing with Canada, with an additional section to cover Britain’s services sector, Peston said.
Prime Minister Theresa May has promised to respect the wishes of an electorate which voted to take Britain out of the EU on June 23. Single-market access is one of the key elements of the negotiation and it particularly affects Britain’s financial services sector. U.K. banks are concerned about retaining their so-called passporting rights which allow them to deal with clients across the EU.
Davis’s department is studying which elements of Britain’s current access to the EU market are most valuable, Peston cited the official as saying.
The Brexit department’s focus for now is on the non-tariff barriers that can discriminate against non-members of the single market, such as rules and regulations about how things are made, what kind of checks they undergo when they cross borders, how services are sold and who is allowed to sell what.