Thread by @JamesERothwell

As UK comes under mounting pressure to shift its red lines on Brexit, Iceland points out that being in the EEA hasn't prevented it from doing free trade deals around the world. My latest:

telegraph.co.uk/politics/2018/…

Iceland's foreign minister also took issue with claim that EEA members are mere ruletakers. “It’s not true we take 80 to 90 per cent of acquis, we have taken 13.4 since 1994...for us, it is a good deal," he told me.

But he conceded that some of the EU laws Iceland was taking on were "strange" - possibly referring to this looming Brussels - Iceland bunfight I reported on last week. So far from perfect - and inapplicable to UK?
telegraph.co.uk/politics/2018/…

EEA's free movement is a UK red line, for example...or is it? Not according to this v interesting briefing to the Indy. Suggests UK's post-Brexit immigration policy will be "very similar to free movement."

independent.co.uk/news/uk/politi…

So perhaps we are going to budge on free movement anyway. OK. What about free trade deals? Iceland's got plenty of those. China is the main success story, but through EFTA it also enjoys deals with Mexico, CARICOM, Georgia.

Obviously, Iceland and UK economies are apples and oranges. One has a population of 300,000, the other 60m. And UK could be a very disruptive trading partner within EEA as it's so big. But model illustrates that narrow paths out of the forest do exist if compromises are made.

And compromises have been the main flavour of these talks, Look at the transition talks - we said we'd fight free movement. We folded. Same for EU acquis - we folded. Look at citizens rights in stage one. As one source told @pmdfoster - an 80-20 fold each step of the way

So, the 100bn euro question: what will an 80/20 fold mean on the issues of trade and solving the Irish border? Probably something that is similar - but for aforementioned reasons not exactly the same as - Icelandic/EEA model.

Is that "Brexit betrayal" or Brexit disaster? Per Icelandic experience, no. Deals can still be done. Wiggle-room can be found. But compromises have to be made, and not everyone can be satisfied.