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Details of the UK government’s plans to monitor trade between different parts of the country from next year will be released on Wednesday.
The Internal Market Bill will set out how the powers currently held by the EU will be divided after the post-Brexit transition period ends.
But it has promoted a dispute over elements that could allow ministers to modify the UK exit agreement.
It comes as talks on a trade deal with the EU continue in London.
The permanent secretary of the Government Legal Department, Sir Jonathan Jones, resigned in light of the bill.
Sir Jonathan, the government’s top attorney, is understood to believe that he went too far in violating the government’s obligations under international law.
And speaking in the Commons on Tuesday, Northern Ireland Secretary Brandon Lewis admitted that the bill would violate international law in a “very specific and limited way.”
Meanwhile, the Scottish government has said it will not consent to the law, arguing that it undermines the return.
The legislation will see Scotland, Wales and Northern Ireland with powers in areas such as air quality and the efficiency of buildings currently regulated at the EU level.
It will also create a new body, the Office for the Internal Market, to ensure that rules adopted in different parts of the UK do not undermine cross-border trade.
The new body will be able to issue non-binding recommendations to the UK Parliament and delegated administrations when clashes arise.
However, plans to grant additional powers to UK ministers to ensure enforcement of customs and trade rules in Northern Ireland have sparked a dispute over the UK’s legal obligations in its exit agreement.
Violation of international law
Under the UK withdrawal agreement, Northern Ireland will remain part of the EU’s single market for goods in an attempt to avoid creating a hard border with the Republic of Ireland.
In parallel with talks on a post-Brexit trade deal, the UK and the EU are negotiating the precise nature of the new customs controls that will be required.
On Tuesday, Lewis, the Northern Ireland secretary, told MPs that he would allow ministers to override the EU law in “strictly defined circumstances” if the border negotiations failed.
He admitted that this would violate international law in a “very specific and limited way,” but insisted that it was a “safety net” in case talks to resolve the agreements failed.
The government says it remains fully committed to the withdrawal agreement, and the bill is a necessary step to avoid a loophole if these talks fail.
However, Labor leader Sir Keir Starmer condemned the bill and accused Downing Street of “reopening old arguments that had been resolved.”
Former Conservative Prime Minister Theresa May warned that the legislation could damage “confidence” in the UK over future trade deals with other states.
Irish Foreign Minister Simon Coveney called Lewis’s comments “seriously disturbing”.
The bill has also sparked a new dispute with the Scottish government, which has accused the UK government of a takeover.
‘Plane in bad condition’
Scottish Constitution Secretary Michael Russell said ministers would find it “impossible” to recommend that the Scottish Parliament give its consent to the bill.
He added that the bill “undermines devolution and the Scottish Parliament, and that, by the UK government’s own admission, it will violate international law.”
He added that the “shabby plan” to monitor UK cross-border trade “would open the door to a race to the bottom” in food and environmental standards.
Scotland’s Secretary, Alister Jack, said the new legislation is about “respecting and strengthening payback” by providing certainty to companies.
“Without this legislation, there would be a serious risk to our jobs and businesses,” he added.
The bill has also been attacked by Labor Welsh Brexit Minister Jeremy Miles, who accused the government of “stealing powers from delegated administrations”.
“This bill is an attack on democracy and an affront to the people of Wales, Scotland and Northern Ireland,” he added.