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Despite British plans to unilaterally change the Brexit deal, the European Union wants to continue working with London on the planned trade pact. This was announced by the Vice President of the EU Commission, Maros Sefcovic, in Brussels. An ultimatum imposed by the EU to walk away from breach of contract is apparently ineffective: the British government has shown no intention of giving in, Sefcovic admitted.
After the UK leaves the EU, a trade deal will be established at the end of October to regulate economic relations from 2021, when the transition period expires. However, Brussels is outraged that London wants to cancel the exit agreement agreed with an “internal market law”. Specifically, there are several key provisions on Northern Ireland in the Brexit Treaty (read more here).
“Extremely serious violation” of the Brexit deal
Sefcovic had set a deadline until the end of September, Wednesday, to withdraw the controversial clauses. However, at a meeting of the so-called Joint Committee, British Minister of State Michael Gove gave no indication that Britain was ready, Sefcovic said. The vice commissioner called the plans a “breach of trust.”
The passage of the domestic market law is “an extremely serious violation” of the Brexit deal, Sefcovic said. The EU will inform “in due course of the next steps” on the legal procedure against the British project. In this case, it is possible to file a claim with the Court of Justice of the European Union or appeal to the dispute resolution body of the withdrawal agreement. If the EU gets there, fines could be imposed on Britain.
Gove himself confirmed that the clauses provided by the UK government were still in force. This is necessary as a “safety net” and has the support of Parliament. Britain’s House of Commons will vote again on Tuesday on the planned internal market law.
Despite the dispute over the internal market law, negotiations on the next deal should continue as planned. The last round at the moment is scheduled for Tuesday through Friday. The trade agreement is of the utmost importance for EU companies. At the end of the year, the UK will also leave the EU internal market and customs union after a transition phase. Without a contract, a tough Brexit threatens tariffs and other major trade barriers.
After leaving the EU until the end of the year, Britain is still in the EU internal market and customs union during a transitional phase. During this time, both parties want to negotiate their future relationships and, in particular, agree to a business deal. Talks about this haven’t progressed in months. Tuesday begins the ninth and, for the moment, the last round of negotiations. A breakthrough seems extremely unlikely given the hardened positions.