UK threatens to rewrite Brexit over trade row

AFP

Britain’s tortuous divorce from the European Union veered into fresh crisis on Monday after London threatened to undermine the exit agreement unless free trade terms are agreed by next month.

In yet another twist to the four-year saga since Britain voted narrowly to quit the bloc, Prime Minister Boris Johnson’s government was on Monday reportedly planning new legislation to override parts of the Brexit Withdrawal Agreement it signed in January.

That could potentially jeopardize the treaty and create frictions in Northern Ireland where special arrangements had been made to avoid a hard border with the Republic of Ireland that could be detrimental to a peace agreement.

Sections of the proposed internal market bill are expected to “eliminate the legal force of parts of the withdrawal agreement” in areas including state aid and Northern Ireland customs, the Financial Times newspaper said, citing three people familiar with the plans.

EU officials were aghast, cautioning that such a step — leaked on the eve of new talks in London — would tarnish Britain’s global prestige and heighten chances of a tumultuous final disentangling from the bloc on December 31.

Britain commented on FT’s report that it was committed to implementing the divorce deal and the protocol relating to Northern Ireland while taking steps to “clarify” specific elements of the agreement.

“We are taking limited and reasonable steps to clarify specific elements of the Northern Ireland Protocol in domestic law to remove any ambiguity and to ensure the government is always able to deliver on its commitments,” said Johnson’s official spokesman.

“As a responsible government, we cannot allow the peace process or the UK’s internal market to inadvertently be compromised by unintended consequences of the protocol.”

Officials confirmed a bill governing Britain’s internal market in trade would be submitted to parliament tomorrow.

There was surprise and anger on both sides of the Irish border and in Brussels at the reported plan to undermine the withdrawal pact.

“I trust the British government to implement the Withdrawal Agreement, an obligation under international law and prerequisite for any future partnership,” said Ursula von der Leyen, head of the EU executive.

Irish Foreign Minister Simon Coveney asked: “Is this political gamesmanship or is there really a piece of legislation that’s going to emerge this week, which is contrary to the withdrawal agreement? We’ll have to wait and see.”

Also on Monday, London has set a deadline of October 15 to strike a deal.

“If we can’t agree by then, then I do not see that there will be a free trade agreement between us, and we should both accept that and move on,” Johnson said.

Britain left the EU on January 31 but talks on a new trade deal before the end of a status-quo transition arrangement in December have snagged.

Without a deal, about US$900 billion annual trade between Britain and the EU could be thrown into uncertainty. Trading between the two parts will be most likely in accordance with WTO terms.