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Brexit poker: UK ramps up no-deal preparations as new round of talks begins

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Britain headed into a fresh round of Brexit trade talks on Tuesday acknowledging it could break international law but only in a "limited way" after reports it may undercut its divorce treaty with the European Union.

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As the pound fell sharply on fears of a no-deal exit, the government's legal department head quit in disagreement with a plan to overwrite parts of the Withdrawal Agreement treaty signed in January.

Britain left the European Union on Jan. 31 but talks on new trade terms have made little headway as the clock ticks down to an October deadline and then the end of the status-quo transition arrangement in late December.

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

Asked if anything in the proposed legislation potentially breached international legal obligations or arrangements, Northern Ireland minister Brandon Lewis said: "Yes, this does break international law in a very specific and limited way."

"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 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.

Amid warnings from the EU that if it reneged on the divorce deal there would be no agreement governing the roughly $1 trillion annual trade, former Prime Minister Theresa May said the government risked serious damage to its international image.

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

"Given that, how can the government reassure future international partners that the UK can be trusted to abide by the legal obligations of the agreements it signs?" May asked.

Brexit talks off to a rocky start

The Financial Times said the government's "very unhappy" legal head Jonathan Jones walked out in protest over the possible plan to undercut the withdrawal agreement in relation to the protocol for British-ruled Northern Ireland.

The prospect of a messy divorce between the EU's $16 trillion and United Kingdom's $3 trillion economies pushed sterlRead More – Source

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