Thread by @tnewtondunn

The spectacularly big row over whether to allow Australian agriculture zero tariffs in a trade deal - as per @pmdfoster and @GeorgeWParker's top scoop today - is now engulfing at least half the Cabinet. I learn however that George Eustice has a plan to end the stand off (1)

Eustice, who wants to protect UK farmers from being under cut, will tell Liz Truss he will accept zero tariffs but NOT zero quotas. Instead, flashpoint Australian imports, such as beef and lamb, must have annual caps, or TRQs (tariff rate quotas) as they're known (2)

The Australians must then be told its TRQs on beef and lamb or no deal, and then challenged to bring down the whole thing over that one element. “They’ve defended their interests well. We just need to do the same for ours”, one close to the talks tells me (3)

Truss argues there is no threat from Australian meat flooding the UK market as it can't even fulfil all its current global demand. Eustice parries by saying HMG would also have to offer zero tariffs and quotas to the US, Brazil and Mexico, who certainly would flood the market (4)

Truss is proposing a long 10 year transition to ease the pain on UK farmers and allow them to diversify, but Eustice's camp argue that just kicks the can down the road, and for a lot of very rural parts of the country there is no alternative but to farm sheep and cattle (5)

Eustice has some powerful allies for his offer: not just Michael Gove, who fears for the damage it could cause the union, but also Scots Sec Alister Jack (over beef) and Welsh Sec Simon Hart (over lamb), who are also terrified it will fuel their separatist movements (6)

I'm also told Eustice is digging in hard on TRQs and will not budge, which conjures up the prospect of resignation if he loses. A showdown meeting of all Cabinet parties is on Thursday. If there is no peace by then, the PM will have to rule. More on @TimesRadio after 7am (7)