Amidst Brexit Turmoil, U.K. Government States to Break International Law Over Brexit 

After reports that Britain may undercut its divorce treaty with the European Union, the British acknowledged in Tuesday that it could break international law but only in a “limited way”.  

The government’s legal department head quit in disagreement with a plan to overwrite parts of the Withdrawal Agreement treaty signed in January as pound fell sharply on fears of a no-deal Brexit.  

Britain left the European Union on Jan. 31. Talks on new trade terms have made little advancement as the deadline in October is nearing and the end of status-quo transition arrangement in late December.  

As diplomats assessed whether Johnson was blustering or serious about allowing a clamorous finale to the four-year saga, Britain insisted it would abide by the treaty. 

Northern Ireland Minister Brandon Lewis told lawmakers in the House of Commons on Tuesday that a planned law that would supersede parts of the Brexit Withdrawal Agreement applying to Northern Ireland would “break international law, in a very specific and limited way.” 

“There are clear precedents for the U.K. and indeed other countries needing to consider their international obligations as circumstances change,” Lewis said. 

“We are taking the powers to disapply the EU law concept of direct effect required by article 4 in a certain, very tightly defined circumstance,” he told the parliament. 

He added that the government supported the Northern Ireland protocol of the Withdrawal Agreement and there was “clear precedence” for what Britain was planning. 

Former Prime Minister Theresa May said the government posed a serious risk to its international image if the supposed divorce deal reneged from its agreement governing the roughly $1 trillion annual trade. 

“The government is now changing the operation of that agreement,” May, who resigned after her own Brexit deal was repeatedly rejected, told parliament. 

“Give that, how can the government reassure future international partners that the UK can be trusted to abide by the legal obligations of the agreement is signs?” May asked. 

The Financial Times said the government’s “very unhappy” legal head Jonathan Jones walked out in p 

The government’s legal head Jonathan Jones walked out in protest “very unhappy” over the possible plan to undercut withdrawal agreement in relation to the protocol for British-ruled Northern Ireland as stated by the Financial Times. 

The prospect of a messy divorce between the EU’s $16 trillion and United Kingdom’s $3 trillion economies pushed sterling to two-week lows with traders betting there was more volatility to come. 

“We need to see more realism from the EU about our status as an independent country,” said David Frost, Britain’s top Brexit negotiator, adding that Britain was ramping up no-deal preparations. 

Britain says the EU has failed to comprehend that U.K. is now independent especially when it comes to fishing and state aid. With this said, the latest round of negotiations in London are likely to be tough. 

The EU, weary of wrangling, says it needs specifics from London and that Britain cannot make its own rules and have preferential access to its markets. 

“A disorderly Brexit would not be good for Europe, it would be a real disaster for Britain and its citizens,” German Finance Minister Olaf Scholz told Reuters. 

British officials say they can make do with an Australia-style arrangement. Australia is negotiating a free trade deal with the EU to improve its market access, but for now largely trades with the bloc on World Trade Organization terms. 


In the daily charts of GBP/USD, we can see a significant drop on Wednesday morning. The price opened at 1.298 and currently down until 1.292. 

Since at the start of September, the sterling pulled back from the resistance at 1.34 and has been dropping since then signaling a strong pull from the sterling bears. 

The Brexit talks between United Kingdom and the European Union has greatly scarred the sterling and speculations of gains until the end of the year is halted by most FX strategists around the world. 

Traders around the globe are waiting for the Brexit agreement and trade to come in to terms to further make a decision in the market but as things are happening the way as it is now, the sterling might remain in a negative outlook for a longer period. 

The price may continue to hover below the 1.34 resistance until the end of the year and may consolidate within this resistance at 1.34 and support level at 1.22. 




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