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The UK is planning new legislation that will overturn key parts of the Brexit withdrawal agreement, risking the collapse of trade negotiations with Brussels.
Sections of the domestic market bill, due to be released on Wednesday, are expected to “remove the legal force from parts of the withdrawal agreement” in areas such as state aid and Northern Ireland customs, according to three people familiar with the plans.
The move would “clearly and consciously” undermine the Northern Ireland deal that Boris Johnson signed last October to prevent a return to a hard border in the region, a person with knowledge of the plans said.
Last week, EU chief negotiator Michel Barnier warned that “a precise implementation of the withdrawal agreement” was vital to the success of the trade talks and a key issue of trust between the two sides.
“It’s a very powerful instrument,” said one of those familiar with the subject. “The bill will state explicitly that the government reserves the right to establish its own regime, directly establishing UK law in opposition to the obligations arising from the withdrawal agreement, and with full knowledge that this will violate international law.” .
The UK Internal Market Bill, outlined in a 100-page white paper in July, is designed to ensure the “smooth running” of trade between England, Wales, Scotland and Northern Ireland after the UK leave the single market and the EU customs union at the end of this year.
But some clauses in the bill will effectively nullify parts of the so-called Northern Ireland protocol, which was signed alongside the withdrawal agreement in October and has angered prominent Brexit-supporting MPs who see it as a threat to British sovereignty.
A government spokesman said it was “working hard to resolve outstanding issues” with the Northern Ireland protocol. He added: “As a responsible government, we are considering alternative options in case this is not achieved to ensure that Northern Ireland communities are protected.”
Under the withdrawal agreement, the UK must notify Brussels of any State aid decisions affecting the Northern Ireland goods market and oblige companies in the province to submit customs formalities when shipping goods to the rest of the UK. But clauses on the domestic market and finance bills will force UK courts to follow the new UK law rather than the EU deal, diluting the protocol’s ability to meddle in state aid policy. from United Kingdom.
The fall finance bill, used to convert the chancellor’s budget into law, is also expected to overwrite a third aspect of Northern Ireland’s protocol covering the payment of tariffs on goods entering the region, according to those familiar with the plans.
Officials say the plans risk poisoning the prospects for a last-minute deal.
Lord Frost, the UK’s chief negotiator, has already deepened tensions ahead of negotiations set to resume in London on Tuesday, saying in a Sunday newspaper interview that the UK would not become a “client state” of the European Union.
A second person familiar with the impending bill said Lord Frost had personally pushed for the decision to take the “nuclear option” of overwriting the withdrawal agreement, despite progress in talks on implementing the Irish protocol.
Christophe Hansen, the European Parliament’s lead MEP for the adoption of the future trade agreement, told the FT that full respect for the withdrawal agreement was a central issue of “trust” and a “litmus test” of the UK’s will to respect the agreements with Brussels. .
“It is very important for us to see that it gets under way,” he said, warning that otherwise the EU could not be sure that Britain will abide by any future association agreements.
