Brexit - Is The EFTA/EEA Model Still On The Agenda?

Whilst the recent agreement on phase 1 of the exit negotiations is to be welcomed, as noted in our earlier article " Keep the champagne on ice for now", now comes the difficult part: there remains much to be negotiated before we have any clarity on the likely scope of any transitional arrangement which is the most pressing concern for the business community. As to the longer term UK/EU relationship, the Cabinet appears still to be divided on its vision and strategy for the next phase of the negotiations, so there is still ample scope for a breakdown.

Sensing a gradual softening in the UK government's position, some proponents of a soft Brexit have become more vocal in pushing for continued membership of the Single Market, for which the obvious model is participation in EFTA/the EEA. Indeed, some commentators have seized on the phrase "regulatory alignment" in the phase 1 agreement as pointing in that direction. Such a model has been repeatedly dismissed by the