The UK Internal Market Bill has recently made headlines due to debate over its potential influence on negotiations with the European Union (EU) and its implications for international treaties. This controversy arises from the potential of the bill to modify aspects of the Brexit withdrawal agreement.
The Essential Components of the Bill
The overarching objective of the bill is to shield jobs and facilitate trade within the UK after the 2020 transition period for exiting the EU concludes. The transition period, as defined in the withdrawal treaty, is set to end in December 2020.
This legislation would enable the UK government to provide financial support to Scotland, Wales, and Northern Ireland. Furthermore, it would present new avenues for government spending of taxpayers’ funds, which were previously managed by the EU.
The bill also grants ministers the authority to establish regulations, particularly regarding trade and state aid, irrespective of their compliance with the agreement formerly reached with the EU under the Irish Backstop (previously known as the Northern Ireland Protocol).
The Irish Backstop constitutes a draft agreement between the UK and the EU, aiming to prevent a stringent border in Ireland post-Brexit. Following the transition, Northern Ireland will transform into the sole land border of the UK with the EU.
The UK government maintains that this Bill is instrumental for seamless trade between England, Scotland, Wales and Northern Ireland, and can serve as a catalyst in the recovery from the Covid-19 pandemic.
Current System and Post-Brexit Aspirations
Presently, the UK forms part of the European single market, adhering to mutually agreed upon regulations and standards across the continent. Post-Brexit, the aspiration is to sustain an “internal market” across England, Scotland, Wales, and Northern Ireland.
Brexit necessitates the establishment of rules and regulations around facets like food and air quality, and animal welfare exclusively within the UK. However, a disagreement persists on which of the four countries should wield ultimate authority.
Criticisms of the Bill
England, under the EU Withdrawal Treaty, is obligated to collaborate with Brussels (headquarters of the EU) on any arrangements pertaining to Northern Ireland, and not to unilaterally dictate such matters.
Scotland perceives this new Bill as an unjustifiable acquisition of power by England from the devolved administrations in Scotland, Wales, and Northern Ireland.
Another criticism relates to the condition where all four nations would have to accept goods at the standards set in any one country. This raises concerns that local quality control measures could be compromised if England establishes a standard impractical or unprofitable for the other three countries.
Moreover, under the proposed law, any disagreements would be resolved by a new Office for the Internal Market. While ostensibly an independent third-party forum, the devolved administrations view it as yet another instance of decision-making authority being snatched away from them.
