UK to hug close to EU rules post Brexit

Bloomberg

Britain will stay closely aligned to the European Union’s regulatory regime after it leaves the bloc but wants the freedom to go its own way if it chooses in future, Brexit Secretary David Davis has said.
During negotiations with the EU, the UK will aim to secure the power to diverge from the bloc’s rules on financial services and other trade issues, Davis told a panel of lawmakers in London on Wednesday. Still, it will be up to parliament and the government to decide later “whether or not” this power is used, he said.
Davis’s comments represent the clearest statement so far on what UK Prime Minister Theresa May’s government wants to achieve for a future relationship with the EU after Brexit. “The aim in this whole exercise will be to maintain the maximum possible access to the European market whilst at the same time exercising our own freedom over what we are going to do in the future,” Davis said. “I see my task as creating that freedom.”
May’s Cabinet is currently finalising its plan for the so-called “end state” of Brexit — what kind of future trade partnership Britain hopes for. Negotiations between the UK and the EU on this issue are due to begin in March. Before then, officials on both sides will hash out the terms of a transitional phase potentially lasting up to two years.
Davis told the committee that he wanted the transition period — also called an “implementation” phase — to help businesses cope, by keeping trading terms in line with single market membership.

RED LINE
Davis also confirmed that the European Court of Justice will hold sway over the UK in the transition, which the EU expects to last until the end of 2020. Escaping the writ of the ECJ is a Brexit “red line” for May.
While officials have been holding talks behind the scenes, Davis said he had not yet decided when he will next sit down opposite his EU counterpart, Michel Barnier, for formal negotiations, though it could be as soon as next week.
The indications are that the UK wants to wrap up talks on the transition so it can quickly move on to negotiating future trade terms. Davis said an agreement could be fixed on transition before the end of March. “I am relaxed about transition because my primary concern is about the future relationship,” he said.