What just happened?
On Thursday 10 September, Michael Gove met with European Vice President, Maros Sefcovic.[1] This emergency meeting was scheduled after the UK has proposed controversial legislation to override parts of the Withdrawal Agreement which was signed last year. The proposed Internal Market Bill, proposed on the 9 September, aims to ensure that goods continue to move easily between the UK’s four nations post-Brexit.[2]
Brexit: What is the Internal Market Bill and does it break international law?
What does this mean?
Significantly, the Internal Market Bill which addresses the Northern Ireland Protocol is what spikes the greatest concern amongst the EU. Under the Protocol, Northern Ireland will continue to enforce the EU’s customs rules and Single Market rules on goods, which will make checks on goods travelling from Northern Ireland to the Republic of Ireland unnecessary. This aims to prevent a hard border in Ireland. The rest of the UK will stop following these rules after 31 December which means that some checks on goods entering Northern Ireland from Great Britain will be necessary.[3] The new Bill proposed by the British Government suggests that there should be no new checks on goods travelling to and from Great Britain. In addition, if the UK and EU are unable to agree on a trade deal, it delegates powers on UK ministers to modify and disapply the rules relating to trade in order to protect the peace in Northern Ireland. The EU fears that this threatens the Good Friday Agreement.
The UK Government has emphasised the principle of parliamentary sovereignty, stating that enacting such legislation would not be unconstitutional as the treaty obligations have not yet been enshrined in domestic legislation. Following tense talks, the EU issued a warning statement which states that "neither the EU nor the UK can unilaterally change, clarify, amend, interpret, disregard or disapply the agreement".
There is controversy amongst the Conservatives, including previous prime ministers Sir John Major and Theresa May who have criticised the Bill. Sir John Major expressed “If we lose our reputation for honouring the promises we make; we will have lost something beyond price that may never be regained.”[4]
Critics argue that the new Bill will seriously damage the UK’s reputation, whilst Boris Johnson argues that it would ensure the integrity of the internal market. Mr Gove has promised to fight for unfettered access to goods from Northern Ireland to the rest of the UK.
What does this mean for the legal sector?
European Commission president, Ursula von der Leyen, expressed great concern about the UK’s intended actions and stated that the proposed amendment of the agreement would ‘break international law and undermine trust between the two sides.’ Contrastingly, the UK Government insists that parliamentary sovereignty means that the UK are able to override international obligations.[5] After a somewhat tense telephone conversation with Mr Gove, Mr Sefcovic stated that he would listen to what Mr Gove had to say before deciding whether Britain can be trusted.[6]
Former Prime Minister, Sir John Major (Picture) criticised the internal market bill, stating “If we lose our reputation for honouring the promises we make; we will have lost something beyond price that may never be regained”.
The EU has stressed the importance of the UK fully and timely complying with the Withdrawal Agreement, including the Protocol on Northern Ireland. The EU has stated that this is not open for discussion or renegotiation – the UK must comply with international law. The EU would not be ‘shy’ of taking legal action against the UK as a result of this. The proposed Internal Market Bill has caused a great deal of controversy amongst the EU. The UK has been given an ultimatum: abandon their new controversial plans or receive no trade deal and a plethora of legal sanctions. According to the draft working paper created by the EU, the UK’s new plans are a substantive breach of the Withdrawal Bill which provides legal remedies. In addition, after the transition period, the EU may open a dispute settlement mechanism which may impose legal sanctions upon the UK.[7]
Despite this threat, Michael Gove insists that he would not and could not withdraw the new Brexit Bill. Mr Gove states that he is looking forward to the second reading of the Bill in the House of Commons this week.
Written by Hannah Travis
Assessing Firms:
#IrwinMitchell #AkinGumpLLP #DLAPiper #HoganLovells #White&Case #Bird&Bird #CliffordChance
References:
[1] Brexit Judgement Day: Gove in emergency talks with EU as huge row erupts (Express and Star, 10 September 2020).
[2] Brexit: What is the Internal Market Bill and why is it controversial? (Sky News, 15 September 2020).
[3] Brexit: What is the Northern Ireland protocol and why is it needed? (BBC News, 9 September 2020).
[4] EU’s ‘serious concerns’ over Brexit treaty move ahead of emergency talks (Express and Star, 10 September 2020).
[5] Brexit: EU ultimatum to UK over withdrawal deal changes (BBC News, 10 September 2020).
[6] Michael Gove tells EU that he ‘would not and could not’ withdraw new Brexit Bill despite threatened legal action (ITV News, 10 September 2020).
[7] EU considers legal action over UK plan for Brexit breach (Bloomberg, 9 September 2020).
Disclaimer: This article (and any information accessed through links in this article) is provided for information purposes only and does not constitute legal advice.