Britain announces legislation on Wednesday for life outside the EU after throwing its trade talks with the bloc into jeopardy by announcing in advance that the new plans would break international law and "clarify" a deal it signed in January.
The announcement of the plans, which the government said would break international law "in a very specific and limited way", has contributed to concerns Britain could be cast out of the European Union's single market with no agreement on trade.
The pound has slid 1.8% against the dollar since Friday and was at its lowest level in six weeks.
Britain quit the EU in January but has remained part of the single market under a status quo agreement which expires in December. It has been negotiating a trade deal that would then take effect, but says it is willing to walk away if it cannot agree favourable terms.
The British government minister responsible for Northern Ireland, Brandon Lewis, told parliament on Tuesday that Wednesday's new bill would break international law but was needed to clarify the Brexit agreement in the event the sides fail to reach a trade deal.
Irish Prime Minister Micheal Martin said he would speak to Johnson to express "very strong concerns" about the initiative while his deputy Leo Varadkar called it a "kamikaze" threat that had backfired.
Britain's top civil service lawyer resigned abruptly on Tuesday over what newspapers described as concern about government plans that would break the law.
The trade negotiations have all but stalled over disagreements over fisheries and state aid. EU chief Brexit negotiator Michel Barnier arrived in London on Wednesday to meet his British counterpart David Frost with both parties warning they have until October to agree a deal.
The EU has warned Britain that if it reneges on the divorce treaty there would be no trade agreement.
"What is clear is that agreed deals must be honoured," German Economy Minister Peter Altmaier said. "That means negotiations should not be burdened by any unilateral changes made to the content of agreements made between the EU and Britain."
EU diplomats are uncertain whether Britain's Internal Market Bill is part of a negotiating strategy, following comments by Prime Minister Boris Johnson this week that both sides should move on if no deal could be struck.
END TO UNELECTED EU POWERS
The new bill will ensure that "no longer will unelected EU bodies be spending our money on our behalf," said Michael Gove, the minister handling Brexit divorce issues for Britain.
"These new spending powers will mean that these decisions will now be made in the UK, focus on UK priorities and be accountable to the UK parliament and people of the UK."
On Northern Ireland, Lewis said the provisions would ensure businesses based there would have "unfettered access" to the rest of Britain, without paperwork.
It would also ensure there would be no legal confusion about the fact that while Northern Ireland would remain subject to EU rules on state aid for business, Britain would not.
Northern Ireland, which borders EU member Ireland, has always been a stumbling block in talks, and almost killed off the Brexit deal until Johnson found agreement with then Irish Prime Minister Varadkar last year.
That agreement calls for border-free trade on the island of Ireland, which the EU says should in some cases require checks on goods passing between Northern Ireland and Britain. But Johnson has ruled out requiring export declarations or tariffs on such goods. He has also said Britain would not be bound by EU rules on providing state aid to companies.
Some fear that a failure to agree on border arrangements could jeopardise the 1998 Good Friday Agreement which largely ended three decades of political and sectarian conflict in Northern Ireland.
Senior members of Johnson's Conservative Party have voiced anger that Britain might consider breaching its obligations under an international treaty.
"Any breach, or potential breach, of the international legal obligations we have entered into is unacceptable, regardless of whether it’s in a ‘specific’ or ‘limited way’," Bob Neill, chairman of parliament's justice committee said.
Reuters
Wed Sep 09 2020
European Union and British flags flutter in front of a chancellery in Berlin, Germany, April 9, 2019. REUTERS file pic
Who are the Israeli hostages released by Hamas on Sunday?
Israel confirms names of three women after they were handed over to Israeli military in Gaza by the International Committee of Red Cross.
More than 200,000 KTMB train tickets allocated for CNY snapped up - Loke
KTMB says 210,000 of the 270,000 train tickets allocated in conjunction with the Chinese New Year season have been sold.
Facebook, TikTok, WhatsApp, Telegram are online platforms preferred by scammers - Fahmi
Fahmi Fadzil says the losses from scams and fraud committed on these platforms easily reached hundreds of millions of ringgit.
Man executed for causing heavy casualties in south China car-ramming case
Fan Weiqiu was convicted ramming his car into the crowd at a sports centre in November last year, causing heavy casualties.
Gov't not rushing to achieve developed nation status - Rafizi
Rafizi Ramli says the country is now in a good position, attracting foreign investors and being seen as a strategic gateway to ASEAN.
South Korea's Yoon shuns questioning as security tightened after court rampage
Authorities says security was being beefed up at the Seoul Detention Centre where Yoon Suk-Yeol is being held as a pre-trial inmate.
Triumphant Trump returns to White House, launching new era of upheaval
Donald Trump is the first US president since the 19th century to win a second term after losing the White House.
Sim: Malaysia's labour market faces significant challenges posed by three paradoxes
Steven Sim says the first paradox is the low median wage, which does not align with the country's low unemployment rate.
Mugshot, khaki uniform and solitary cell for South Korea's detained President Yoon
Here's some facts about the facility and what is expected to unfold for the former prosecutor-turned-president.
Trump says to repeal Biden's multiple executive orders within hours of inauguration
Trump says the executive orders he is about to sign includes border security, energy, federal government spending, TikTok, DEI programmes.
Trump's return adds new twist to Western firms' Russia exit dilemma
Donald Trump's mere arrival may give some companies the political cover to stay on in Russia.
Slim chance of Trump 2.0 reversing Biden's proposed AI chip export controls
Investment bank says it sees "little chance" for a complete overturn of that decision by the incoming Trump administration.
PM to lead ASEAN’s global voice at WEF 2025
This will be Datuk Seri Anwar Ibrahim's first participation in WEF since assuming the role of Prime Minister.
Malaysia calls for ASEAN cybercrime task force to tackle rising digital threats - Ahmad Zahid
Datuk Seri Dr Ahmad Zahid Hamidi says must implement AI-driven predictive policing and real-time urban surveillance.
Trump says he will quickly release JFK, Robert Kennedy, MLK assassination files
Donald Trump did not specify which documents would be released, and he did not promise a blanket declassification.
Suspected Bangladeshi arrested in stabbing of Bollywood star Saif Ali Khan
Primary evidence suggests that the accused is a Bangladeshi citizen and after entering India illegally he changed his name, police says.
Floods: More victims in Sarawak, situation in Sabah unchanged
All the flood victims are residents of Rumah Tembawai Kapok, a longhouse in the Awik area of Saratok.
[COLUMNIST] Active neutrality in the pursuit of AI innovation
Malaysia must address its innovation barriers to achieve its goal of becoming a global technology leader.
Trump says he will prevent transgender athletes from participating in women's sports
Donald Trump says he will take action to "keep men out of women's sports."
ASEAN tells Myanmar junta peace, not election, is priority
Malaysia wants to know what Myanmar has in mind, says Malaysian Foreign Minister Mohamad Hasan.