The European Union is considering ending the trade agreement with Britain

The headquarters of the European Union in Brussels

The European Union is studying the possibility of ending the post-Brexit trade deal if the UK government reneges on its commitments on Northern Ireland, according to people familiar with the matter.
British Prime Minister Boris Johnson has threatened to suspend parts of the Brexit protocol if the dispute over trade rules for goods shipped to Northern Ireland, which governs trade between the territory and the rest of the United Kingdom unilaterally, is not unilaterally resolved, using the powers granted to him in Article 16 of the agreement.
European officials discussed the need to prepare a strong response to this threat.
Abolishing last year’s trade deal would destroy the already under-supplied British economy. It will also impose costs on European companies with their UK customers.
The decision will require the collective support of the governments of all 27 EU countries. It will lead to a cooling-off period before tariffs, quotas and other barriers to trade between Britain and the EU begin to be imposed.
The EU could terminate the deal entirely or target specific industries.

Source: db a


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