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The government will drop parts of the legislation that could have seen the UK violate international law after reaching an “agreement in principle” on Brexit divorce issues.
Cabinet Office Minister Michael Gove said he was “delighted” to have reached an agreement, including on post-Brexit arrangements for the Irish border, following talks with European Commission Vice President Maros Sefcovic.
As a result, the government said it would withdraw the most controversial parts of its Internal Market Law.
The proposed legislation had seen the EU threaten legal action against the UK as part of a bitter dispute.
The government also promised not to introduce any similar measures in its Tax Bill, which will be debated by MPs in the House of Commons later on Tuesday.
Gove and Sefcovic are co-chairs of the EU-UK Joint Committee, which oversees the implementation of the Withdrawal Agreement, the divorce deal Britain agreed with the bloc last year.
Their discussions are separate from the ongoing negotiations on a post-Brexit trade deal, which are still stalled before the end of the Brexit transition period on December 31.
Prime Minister Boris Johnson and the president of the European Commission, Ursula von der Leyen, will meet in Brussels “in the next few days” in an attempt to try to break the deadlock in an EU-UK trade deal.
