I don't really buy this idea that the negotiations are a clash of philosophical outlooks. If it's really about sovereignty, why do we hear nothing about similar arrangements at the WTO?
If you break the WTO rules on subsidies, you get hit by tariffs. It's the same basic arrangement. But I have literally never heard a Brexiter complain about this.
We all know that you give up some degree of domestic political control in order to enter into mutually advantageous international relationships. The difference is that Europe is a totemic issue with immediate political implications for the PM at home. The WTO isn't.
So the real heart of the matter isn't economic, or philosophical. It's political.
Ah - here's David putting it with much more expertise and precision than I have. https://twitter.com/MartynWilliams2/status/1337029980073680899?s=19