The Brexit Hubris

Business Standard     18th September 2020     Save    

Context: Given the complexity of the process and innumerable issues that have sprung up in the BREXIT process, UK would leave the EU without a deal on January 1, 2021.

Issues in BREXIT process:

  • The Internal market bill: Led to violating key aspects of the EU withdrawal agreement 
  • Raises a possibility of  a split within the UK 
  • Diminish U.K’s global reputation as an upholder of international treaties with US expressing reservations about discussing a free-trade agreement.
  • The status of Northern Ireland: the only land border with the EU(The Republic of Ireland)
  • The Internal Market bill violates the withdrawal agreement that had stipulated that there would be no border checks of goods flowing between the Republic and Northern Ireland 
  • It threatens the fragile peace that was established in 1998 after  a centuries-long civil war, by giving British ministers power to impose border checks.
    • Undermining local powers due to ‘power grab’ by the Westminster: Bill gives the post-Brexit powers over regulations and standards to the Westminster that should have devolved to the administrations of Northern Ireland, Wales, and Scotland. 
  • Provision related to state aid:
    • The Bill gives the UK government the unilateral right to decide whether to inform the EU about state aid to firms doing business with its member-states.
    • The refusal to declare details of state aid has heightened EU suspicions that the UK would use state subsidies to make British goods more competitive and this can distort fair competition.

Conclusion: The Bill, which is now before the House of Lords, suggests that the UK’s post-Brexit problems have only just begun.