Europe’s top court has ruled that a key EU-Singapore trade deal requires backing by all EU member states — but only for a narrow set of issues — in a decision that could chart the way for a post-Brexit accord with the UK.

The European Court of Justice ruled that EU member states must sign off on specific areas related to investment in the Singapore trade deal. However, it added that the remainder of the agreement was the exclusive competence of the EU, a finding that could make it easier to push through trade deals with Brussels.

The Institute of Directors, a British business organisation, welcomed the decision. “This ruling will probably make it easier for the EU to conclude trade deals without fear of as many hold-ups from national and sub-national legislatures,” said Allie Renison, head of EU and trade policy.