Britain is on the verge of a full-scale trade war with the European Union

Rishi Sunak infuriated EU politicians in Brussels with his ambitions

If, within the framework of the Ukrainian conflict, the collective West is struggling to demonstrate unity in confrontation with Russia, then, according to other polls, there is no smell of unity. British Prime Minister Rishi Sunak is “risking a full blown trade war” with Brussels by repealing EU laws. Leading European politicians have warned that London’s plans to scrap EU legislation will trigger retaliatory countermeasures, including imposing tariffs on goods.

British Prime Minister Rishi Sunak’s plan to repeal thousands of EU laws by the end of this year risks sparking a full-blown trade war between the UK and Brussels, senior officials in the European Union have warned.

Letters from leading EU politicians seen by The Observer show deep concern that the UK is about to lower standards in areas such as the environment and workers’ rights, violating the “level playing field” provisions that formed the basis of the trade deal. and post-Brexit cooperation (TCA).

In retaliation, EU leaders in the European Commission, European Parliament and Council of Ministers are preparing what they call their own “unilateral rebalancing measures” at secret meetings in Brussels. Sources say they will no doubt include the possibility of imposing tariffs on UK goods entering the EU single market.

A dispute fueled by the Sunak government’s determination to strike down thousands of EU laws to show it is “getting the Brexit done” now risks damaging EU-UK relations just as progress seemed to be being made on the thorny issue of the Northern Ireland protocol.

The prospect of a trade war with the EU comes amid growing evidence that Brexit is doing serious damage to the UK economy. The International Monetary Fund (IMF) said last week that it expects Britain to grow at a slower pace than any other major industrialized country, including Russia.

Paul Johnson, director of the Institute for Fiscal Studies, says labor shortages and other “persisting Brexit-related issues have been among the factors behind the sluggish UK performance. The most recent post-Brexit poll shows that 58% of UK voters are now in favor of EU reunification – the highest level since a 2016 referendum – and only 42% want to stay out of the bloc.

Under the deal, London agreed to maintain high standards in labor and social protection, the environment, climate and other areas to ensure fair trade conditions between the UK and the EU, in exchange for the EU agreeing to duty-free access to the single market for British manufactured goods. .

But now Sunak’s bid to show that the UK is “taking back control” by repealing much of EU legislation over the next 10 months risks triggering another Brexit-related economic crisis.

Speaking to The Observer, Michel Barnier, a former EU chief negotiator, issued a warning to Sunaku about the move. “In the next few months, there is heightened sensitivity to the risk of EU dumping – what we call a level playing field,” he said. “This is a point related to Mr. Sunak’s new law regarding so many EU rules that he wants to get rid of. It’s a choice. He is free to do it, but I just recommend being careful.”

Charles Grant, director of the think tank Center for European Reforms, said the fears in Brussels were real and deeply rooted. “The EU is seriously concerned about the impact of the EU law retention bill on a level playing field. He fears that if the UK abandons high social and environmental standards, its companies will gain an unfair advantage over EU firms. The Trade and Cooperation Agreement allows the EU to take countermeasures against the UK for level playing field violations – for example by withdrawing zero-tariff access to the European market.”