The UK government presented to the House of Commons a draft law on the UK internal market, which the authorities said will ensure its integrity after the Brexit transition period. Earlier, the President of the European Commission, Ursula von der Leyen, wrote that she was very concerned about the British government’s statements about its intention to breach the agreement on the UK’s withdrawal from the EU.
The draft is highly controversial because – as its critics say – the act will in practice invalidate the provisions of the protocol on Northern Ireland, which is part of the agreement on the withdrawal of Great Britain from the European Union, concluded last October. Under this agreement, Northern Ireland is to remain part of the EU’s single market for trade in goods to avoid a return to a hard border with the Republic of Ireland, which could jeopardize the peace process in the British province.
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Government: The law is necessary to prevent harmful tariffs
The London government explains that the law is needed to prevent “harmful” tariffs on goods moving from the rest of the UK to Northern Ireland in the event that the UK’s FTA negotiations with the EU fail.
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It specifies how the competences that have so far been in the hands of Brussels will be distributed between the House of Commons and the autonomous governments of Scotland, Wales and Northern Ireland. Under this legislation, Scotland, Wales and Northern Ireland will have powers in areas such as air quality and energy performance in buildings, which are currently regulated at EU level.
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A new body will also be set up – the Internal Market Authority – to ensure that standards adopted in different parts of the UK do not weaken cross-border trade. The new body will be able to issue non-binding recommendations to the British Parliament and decentralized administrations in the event of conflicts.
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A key element, however, is empowering ministers to define rules on state aid, as well as whether it is necessary to control goods moving between Northern Ireland and the rest of UK territory.