Brexit back in crisis
That could potentially jeopardise the whole treaty and create frictions in British-ruled Northern Ireland where special arrangements had been made to avoid a hard border with Ireland to the south 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 diplomats 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 Dec. 31.
The report was neither confirmed nor denied by Britain.
A government spokeswoman said it would work to resolve outstanding disagreements about Northern Ireland with the EU but was considering fall back options. “We will always reserve the right to act in the best interests of Northern Ireland and the UK’s internal market,” she said.
Sterling fell against the dollar and euro.
Britain says considering ‘fall back options’ on Northern Ireland Brexit problems
Britain left the EU on Jan. 31 but talks on a new trade deal before the end of a status-quo transition arrangement in December have snagged on state aid rules and fishing.
London has set a deadline of Oct. 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 was to say on Monday, according to his office.
Without a deal, about $900 million annual trade between Britain and the EU could be thrown into uncertainty, including rules on everything from car parts and medicines to fruit and data.
Some Brexit-supporting members of the ruling Conservatives oppose the withdrawal agreement as threatening British independence even if the two sides secure future trade ties.