-Free trade deal proposal & Davis’ resignation
A new U.K.-EU free trade area for goods announced Friday will be created under Brexit plans agreed by Prime Minister Theresa May and her ministers at Chequers - the prime minister's country retreat.
According to the new trade proposal, the U.K. will have the same rules for all goods as it currently does as a member of the bloc. However, the government wants the U.K. to be free to diverge from EU rules over services, one of the biggest drivers of the U.K. economy. Almost 80 percent of the U.K.’s economy is based on the service sector.
"This is an important further step in our negotiations with the European Union. But, of course, we still have lots of work to do in ensuring with the EU we get to the end point in October. But this is good. We have come today, following our detailed discussions, to a positive future for the U.K. This will deliver security and prosperity for our people." Theresa May told Sky News on Friday.
However, media reports reveal that David Davis resigned as Secretary of State for Exiting the European Union. The Brexit secretary’s resignation follows growing tension in May’s cabinet over her vision of a post-Brexit relationship with the EU. Davis had also clashed with May over her Customs Union plan with the EU that would see the U.K. closely aligned with the EU when it comes to trade.
The prime minister failed to unite her cabinet on her "third way" vision for a soft Brexit at a summit at her private residence at Chequers on Friday.
Although her cabinet agreed on this "third way" vision, there are signs of growing rebellion among the hard Brexiteers in her party as they disagree with her plans for a soft Brexit. May has appointed Dominic Raab as Brexit secretary after Davis resigned from the government.