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Boris Johnson and Ursula von der Leyen had a “positive” exploratory meeting on the next round of Brexit talks, making a concerted effort to put the divisions of the past three years behind them.

The new president of the European commission said the two sides should focus on mutual interests, and both leaders reportedly agreed that there could be common ground on the climate crisis, human rights and security.

But the British prime minister, who has made it clear he does not want the UK to remain aligned with EU rules and regulations, said he was aiming for a fast Canada-style free trade agreement and would not be requesting an extension to the transition period.

Von der Leyen said in a speech before the meeting that such a timeframe was essentially impossible if Britain wanted a comprehensive agreement, and reiterated that the UK would not be allowed to have its cake and eat it:

The more divergence there is, the more distant the partnership has to be. Without free movement of people, you cannot have free movement of capital, goods and services. Without a level playing field on environment, labour, taxation and state aid, you cannot have highest-quality access to the world’s largest single market.

Meanwhile, the prime minister’s Brexit bill cleared the House of Commons, passing at third reading by a majority of 330 to 231 and heading to the House of Lords, where peers could give it a more challenging hearing but are unlikely to block its passage.

But in signs of potential problems ahead, MEP’s expressed “grave concern” about the UK government’s attitude to the 3.3 million EU citizens in Britain, and the UK was accused of behaving “like a bunch of cowboys” after a confidential EU report accused it of “deliberate violations and abuse” of the Schengen Information System database.

Croatia’s prime minister, Andrej Plenković, whose country is taking over the presidency of the EU, said the EU would block the City’s access to EU markets if Johnson tried to exempt the UK from its laws, while Northern Ireland’s new customs arrangements would not be ready by the end of the year, an expert report said, exposing the UK to EU legal action.

What next

The Johnson-Von der Leyen meeting may have been all smiles but the faultlines – and not just over the impossibility of reaching a comprehensive deal covering all aspects of the future relationship in just 11 months – are clear:

By the end of June, the EU will need to unilaterally decide on equivalence in 26 areas in the financial services sector in order to allow the City to continue to operate largely as it does today for EU clients

The British fishing industry wants radical change from the common fisheries policy under which nearly 60% of fish in UK waters is caught by EU-based boats; the large European fishing nations insist on their historical rights of access.

A “zero tariff, zero quotas” deal on goods will require UK alignment with EU environmental, labour, social and state aid rules, which Johnson has rejected. Von der Leyen made clear the alternative implies fundamental change for the UK car and pharmaceutical industries.

Best of the rest

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In the Guardian, Mujtaba Rahman identifies the two major stumbling blocks ahead and argues a low-alignment deal now seems likely but comes with great risks:

First, Downing Street insists it will not extend the transition in any circumstances. The EU’s 27 member states will only agree on the commission’s mandate to negotiate on their behalf by the end of February. The cabinet and Whitehall will also need time to settle on a final policy. Ratification of the deal will probably take two to three months. In a best-case scenario, that leaves March to September – seven months – to strike an agreement. It’s an understatement to suggest this might not be long enough … The challenge Johnson is setting himself is immense. The risk of a no-deal cliff edge at the end of the year will remain a key concern. Second, many at the top of government see diverging from EU rules as the big prize of Brexit. While legislation enshrining existing EU standards in the areas of workers’ rights and the environment is likely, it’s doubtful this government will agree to follow EU rules in the future. Could Johnson prove more pragmatic? Perhaps, but probably only when talks reach a climax in the autumn. The government could be tempted to follow EU rules in sectors such as aerospace, pharmaceuticals and chemicals. But this is not a given. A scrappy, relatively unambitious, low-alignment trade deal is arguably the most plausible landing zone. The risk of tariffs, not just regulatory barriers, is real.

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Useful thread from an international legal expert on what will – and will not – happen on 31 January: