The UK’s post-Brexit relations with the European Union are at a precarious point, with Rishi Sunak’s plan to scrap thousands of EU laws by the end of this year threatening to trigger a full-scale trade war between the two sides. Letters from leading EU politicians seen by the Observer reveal deep concern that the UK is about to lower standards in areas such as environmental protection and workers’ rights, breaching the “level playing field” provisions that were at the heart of the post-Brexit trade and cooperation agreement (TCA). In response, the EU is preparing its own “unilateral rebalancing measures”, which sources say could include the option of imposing tariffs on UK goods entering the EU single market.
The warnings of retaliatory moves by the EU have been issued by two senior figures involved in the planned European response: France’s ex-Europe minister Nathalie Loiseau and David McAllister, the German MEP who chairs the European parliament’s foreign affairs committee. Michel Barnier, the EU’s former chief negotiator, has also issued a warning to Sunak over the move.
The prospect of a trade war with the EU comes amid growing evidence that Brexit is inflicting serious damage on the UK economy. Last week the International Money Fund (IMF) said it expected Britain to grow at a slower rate than any other of the G7 leading industrialised countries, including Russia, which is being economically drained by its war with Ukraine.
Under the TCA, the UK agreed to maintain high standards on labour and social protection, the environment, climate and other areas in order to ensure fair conditions for UK-EU trade, in return for the EU agreeing to tariff-free access to the single market for British manufactured goods. But now Sunak’s attempt to show the UK is “taking back control” by axing much of EU retained law within the next 10 months risks triggering another Brexit-related economic crisis.
The UK’s post-Brexit relationship with the European Union is at risk of becoming increasingly strained, with Rishi Sunak’s plan to scrap thousands of EU laws by the end of this year threatening to spark a full-scale trade war between the two sides. This could have devastating consequences for the UK economy, which is already being hit hard by Brexit. The EU has warned of retaliatory moves, such as the option of imposing tariffs on UK goods entering the single market, if the UK fails to uphold the high standards of labour and social protection, the environment, climate and other areas that were agreed upon in the Trade and Cooperation Agreement. The UK government has insisted that it is committed to upholding its international obligations, but the potential for a trade war remains a real possibility.
Source: www.theguardian.com