Chicken Game Escalates Between UK and EU... "No Withdrawal" Despite Legal Action Warning
UK-EU Emergency Meeting on Internal Market Bill... UK Cabinet Secretary "Will Neither Withdraw Nor Proceed"
8th Future Relationship Negotiations End Without Results... No-Deal Possibility Increasing
[Asia Economy Reporter Jeong Hyunjin] The European Union (EU) has threatened legal action against the United Kingdom for unveiling the 'Internal Market Bill,' which nullifies parts of the existing EU Withdrawal Agreement. The UK responded by stating "there will be no withdrawal," signaling a willingness to engage in a 'chicken game.' On the 10th (local time), both sides held the 8th round of negotiations to redefine their relationship but made little progress.
According to the UK daily The Guardian and others on the 10th (local time), the EU strongly urged the UK government to scrap the Internal Market Bill by the end of this month. The EU took a hardline stance, warning that failure to comply would result in legal measures including financial and trade sanctions. It appears the EU is prepared to take legal action through the European Court of Justice (ECJ) even before the transition period ends, potentially imposing trade sanctions or initiating arbitration procedures to levy fines.
Maros Sefcovic, Vice-President of the European Commission, expressed dissatisfaction ahead of an emergency meeting with Michael Gove, the UK Chancellor of the Duchy of Lancaster, in London, stating, "We have not received assurances that the UK will respect the content, spirit, and timetable of the Withdrawal Agreement."
The EU has demanded that the UK repeal the bill by the end of this month, calling it a "gross violation of the Withdrawal Agreement." On the same day, the EU shared a legal analysis with member states stating that the bill breaches the Brexit agreement and that litigation against the UK is possible.
The controversial draft of the UK government's Internal Market Bill includes provisions on domestic trade within the UK?England, Scotland, Northern Ireland, and Wales?after the Brexit transition period ends at the end of the year. The problematic section concerns Northern Ireland, which, despite being UK territory, remains part of the EU single market. The bill allows goods moving from Northern Ireland, where EU regulations apply, to the rest of the UK to bypass customs checks and permits ignoring obligations listed in the Withdrawal Agreement, such as prior notification to the EU regarding state subsidies.
Michael Gove, UK Chancellor of the Duchy of Lancaster, responded to the EU's demands by stating, "We explained to Vice-President Sefcovic that we will neither withdraw nor repeal the bill." He immediately appeared before the House of Commons, explaining, "For the past 40 years, many rules governing the movement of goods within the UK have been based on EU single market regulations. As we leave the EU, a strong legal framework is needed to support this, and the Internal Market Bill was introduced to secure that." The Guardian assessed this as "the UK government's firm rejection of the EU's final ultimatum, putting Brexit negotiations at risk of collapse."
Michel Barnier, the European Union (EU) Brexit negotiator, looks at a placard held by anti-Brexit protesters in London, UK, on the 9th (local time). [Image source=Reuters Yonhap News]
View original imageThe 8th round of transition period negotiations between the UK and the EU held in London that day also failed to produce significant results. Michel Barnier, the EU's Brexit negotiator, emphasized, "Mutual trust between both sides, now and in the future, is essential for their future relationship," while noting substantial differences on key issues. Barnier stated that disagreements remain large regarding state subsidies and EU fishing rights in UK waters. Further talks are scheduled next week in Brussels, Belgium, where the EU headquarters are located, but expectations for an agreement are low.
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The Internal Market Bill has also caused significant turmoil within the UK. The UK Parliament is set to review the bill on the 15th and 16th. Given that the Conservative Party leadership has already expressed concerns about 'violating international law,' there are predictions that the bill may fail to pass in Parliament. Ireland is also opposed. Irish Prime Minister Miche?l Martin expressed opposition to UK Prime Minister Boris Johnson the day before. He emphasized to foreign media that the UK government must act to restore trust in the international community. Some observers suggest that the series of events surrounding Brexit could also fuel Scotland's desire for independence.
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