Brexit in crisis as UK threatens to undermine divorce treaty

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LONDON: Britain’s tortuous divorce from the European Union veered into fresh crisis on Monday after London signalled it could undermine the exit agreement with Brussels unless free trade terms are agreed by next month.

In yet another twist to the four-year saga since Britain voted narrowly to quit the EU, Prime Minister Boris Johnson’s government was reportedly planning new legislation to override parts of the Brexit Withdrawal Agreement it signed in January.

That could potentially jeopardise the whole treaty and create frictions in British-ruled Northern Ireland, where special arrangements had been made to avoid a hard border with Ireland to the south that could be detrimental to a peace agreement.

Britain said it would honour the deal and was simply offering clarifications to avoid any future legal difficulties.

But the Financial Times newspaper cited three people as saying the proposed internal market bill was expected to “eliminate the legal force of parts of the withdrawal agreement” in areas including state aid and Northern Ireland customs.

EU diplomats were aghast, cautioning that such a step – leaked on the eve of new talks in London – would tarnish Britain’s global prestige and heighten chances of a tumultuous final disentangling from the bloc on December 31. Irish Foreign Minister Simon Coveney asked: “Is this political gamesmanship or is there really a piece of legislation that’s going to emerge this week, which is contrary to the withdrawal agreement? We’ll have to wait and see.” Without a deal, about $900 billion annual trade between Britain and the EU could be thrown into uncertainty, including rules on everything from car parts and medicines to fruit and data.