Factbox-UK's treaty-breaking Brexit laws: What happens next?

  • 12/8/2020
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LONDON (Reuters) - Prime Minister Boris Johnson could drop clauses in legislation that will deliberately breach Britain’s European Union exit treaty if negotiators agree a deal with the bloc on how to manage the Irish border. The clauses have drawn warnings that they would wreck talks on trade deals with the EU and the United States and damage Britain’s international standing. WHAT IS THE LEGISLATION? There are two bills, both at different stages of the legislative process: the Internal Market Bill and the Taxation (Post-Transition Period) Bill. The government says certain clauses in both bills are necessary to create a safety net that protects Northern Ireland if talks on how to manage the Ireland-Northern Ireland border fail. The Internal Market Bill is in its final stages of approval. It aims to ensure the United Kingdom’s four nations can trade freely with one another after leaving the EU. The government says that requires creating powers to override parts of the January withdrawal treaty. Northern Ireland minister Brandon Lewis called it a “very specific and limited” breach of international law. For example, both bills circumvent an agreement with the EU on how to set taxes for goods moving into Northern Ireland from the rest of the United Kingdom. They do this by granting ministers the power to set the applicable rates unilaterally. WHAT HAPPENS NEXT? The government said it could drop the clauses from the Internal Market Bill and review the taxation bill if talks between Britain and the EU on how to implement the rules on the Irish border reach a satisfactory conclusion in the coming days. These talks are separate to the main negotiations on a Brexit free trade deal. Parliament voted in favour of the Internal Market Bill clauses on Monday, but they could yet be removed before the bill becomes law. The Taxation Bill begins its journey through parliament on Tuesday, and will be debated in full on Wednesday. WHAT IS THE PROBLEM THE LAWS ARE TRYING TO SOLVE? The government says it needs a safety net to prevent the EU interpreting the complex customs agreements between Ireland and Northern Ireland in a way that limits trade. The EU wants to make sure the open border with Ireland does not act as a back door into the bloc for goods. London wants to make sure goods flow freely between Northern Ireland and the rest of the United Kingdom.

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