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LONDON – The British government has opted to press with a controversial bill that could eventually undermine the Brexit divorce deal signed last year despite an ultimatum and threat of legal action from the EU.
Following the plans published by the UK government, bets between the two parties are getting higher if the legislature can change legally binding Brexit agreements with Brussels.
Britain’s Internal Market Bill would provide for the British Government not to consult the European Union in state aid matters related to the trade of goods between Northern Ireland and the rest of the European Union. The UK agreed to do the opposite when signing its divorce agreement with the European Union in January. The bill would also potentially change the requirements that Northern Irish firms meet export summary declarations when shipping goods to the mainland.
Westminster’s blowout move could break international law and jeopardize a trade deal not only with the European Union, but also with the US
At an emergency meeting in London on Thursday, European authorities asked the UK government to revise its plans “in the shortest possible time and by the end of the month in any case”.
The European Union said in a statement after the meeting, “By putting this bill forward, the UK has severely damaged the trust between the EU and the UK. It is now up to the UK government to re-establish that trust.” is dependent.”
It is a precondition for the European Union that the UK respects earlier legislative deals before the conclusion of any trade agreement with the UK
Michael Gov, who represented the UK government at that meeting, said the British cabinet would not withdraw “new law schemes”.
He said that the Internal Marble Bill does not abolish previous commitments.
The European Union disagrees and said it would “not be shy to use all available legal means” if Britain goes ahead with the bill in its current form.
Meanwhile, there will be meetings between the two sides next week.
They are negotiating a new trade regime to be implemented from March 2021. But the coronovirus epidemic briefly prevented meetings between the two sides. Despite the promise to speed talks during the summer, there has been no significant progress.
They are stuck on state aid and fisheries.
Some analysts believe the latest increase in the bill could be a compromise strategy aimed at bridging those differences. Others have changed their forecasts, predicting that failure in trade negotiations will be the most likely outcome.
UK economist Thomas Pugh of Capital Economics told CNBC’s “Squawk Box Europe” on Friday that no one knows if it is an asana or whether it is being established without a deal.
Without a trade agreement before the end of the year, trade between the European Union and the UK would be carried out under World Trade Organization rules. This would mean higher costs and barriers for businesses on both sides of the English Channel than the current regime.