The new legislation would be risky in terms of the collapse of trade negotiations with Brussels. According to be published this Wednesday, sections of the internal market bill are expected to "eliminate the legal force of parts of the withdrawal agreement" in areas including state aid and Northern Ireland customs, according to three people familiar with the plans.
The move would "clearly and consciously" undermine the agreement on Northern Ireland that Boris Johnson signed last October to avoid returning to a hard border in the region, one person with knowledge of the plans said. Last week, the EU's chief negotiator Michel Barnier warned that "a precise implementation of the withdrawal agreement" was vital for trade talks' success and a vital issue of trust between them. "It is a very blunt instrument," said one of those familiar with the matter. "The bill will explicitly say the government reserves the right to set its regime, directly setting up UK law in opposition with obligations under the withdrawal agreement, and in full cognizance that this will breach international law."
The UK internal market bill, outlined in a 100-page white paper in July, is designed to secure the "seamless functioning" of trade between England, Wales, Scotland, and Northern Ireland after the UK leaves the EU's single market and customs union at the end of this year. But some clauses in the bill will effectively override parts of the so-called Northern Ireland protocol, which was signed alongside the withdrawal agreement in October and has enraged prominent Brexit-supporting MPs who see it as a threat to British sovereignty. A government spokesperson said it was "working hard to resolve outstanding issues" with the Northern Ireland protocol.