🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

UK's Brexit treaty override powers approved by parliament's lower house

Published 09/29/2020, 03:42 PM
Updated 09/29/2020, 03:50 PM
© Reuters. FILE PHOTO: British PM May meets German Chancellor Merkel to discuss Brexit in Berlin

LONDON (Reuters) - Britain's House of Commons approved legislation on Tuesday that gives ministers the power to break its divorce deal with the European Union, despite the threat of legal action from Brussels and unrest within the governing Conservative Party.

The UK Internal Market Bill, which ministers acknowledge breaks international law, was approved by 340 votes to 256 and now passes to the House of Lords for debate.

The bill seeks to protect free trade between Britain's four nations once a Brexit transition period ends, but has soured relations with Brussels just as time is running out to reach a deal on their long-term relationship.

After an initial uproar within Prime Minister Boris Johnson's party, including criticism from three former Conservative prime ministers, a rebellion was snuffed out by a concession to give parliament a say over using the powers.

The government says clauses in the bill which override the Withdrawal Agreement, signed by Johnson in January, are necessary to protect free trade with Northern Ireland, and will only be used if talks on a border solution with the EU fail.

The EU, which wants to make sure Northern Ireland's open border with member state Ireland does not act as a back door for goods to come into the bloc, says it is an extremely serious violation of the exit treaty and has threatened to sue.

Scrutiny in the House of Lords, parliament's upper chamber, is expected to take until early December. Johnson does not have a majority there and revisions to the most contentious clauses are likely to have strong support.

But talks with the EU are expected to move more quickly, and if a deal can be reached on an Irish border solution the powers may not be needed.

© Reuters. FILE PHOTO: British PM May meets German Chancellor Merkel to discuss Brexit in Berlin

If there is no deal, any changes made by the Lords would need approval from the Commons, creating potential for a political standoff.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.