The controversial bill sets out rules for the operation of the UK internal market trade between England, Scotland, Wales and Northern Ireland after the end of the transition period in January.
It proposes:
- The establishment of two legal principles, mutual recognition and non-discrimination, to ensure there are no new barriers for businesses trading across the UK, allowing a good or service to be sold anywhere in the UK without discrimination.
- Giving UK ministers powers to modify or “disapply” rules relating to the movement of goods from Northern Ireland to Great Britain that will come into force from 1 January, via the Northern Ireland Protocol, if both sides cannot agree beforehand.
- Powers to override previously agreed obligations with the EU in the Withdrawal Agreement on state aid – government support for businesses.
The Bill has come under some scrutiny, particularly over its provisions for Northern Ireland which would allow Ministers to unilaterally re-interpret and disapply parts of the Northern Ireland protocol, as well as ignore their legal obligations under both domestic and international law to enact the Withdrawal Agreement in full.
The EU has warned the UK that this could potentially affect trade talks and have warned that the UK could face legal action if it continues with the controversial elements of the Bill.
Despite the disagreement over this, the UK and EU are set to hold further talks on the future relationship later this week.
UPDATE: The Bill has now been amended by the Government to include a provision requiring Ministers to seek approval from MPs before using the contentious Northern Ireland powers. If the Bill passes third reading, it will be sent to the House of Lords for consideration.