Maros Sefcovic, the bloc’s chief Brexit negotiator, warned the UK that scrapping thousands of European rules around banking, food exports and data sharing “would further deepen trade barriers” amid the current cost of living crisis.
Mr Sefcovic delivered a keynote speech to business leaders in London where he warned of the dangers of serious deals Britain has struck with the EU alongside the Brexit negotiations.
One of these agreements is a data adequacy pact that guarantees the free flow of data between companies and an agreement for the sale of organic food.
However, Brussels has not yet made any commitment to improve city banks’ access to EU financial markets, The Telegraph reported.
All of these agreements are subject to UK and EU rules which are considered equivalent and can be revoked if either party is found not to meet those standards.
Efficiency Secretary Jacob Rees-Mogg is set to publish a Brexit Freedoms Bill next month, outlining the government’s plans to make the most of leaving the bloc.
Mr Rees-Mogg claims Brexit and getting rid of Brussels bureaucracy will give Britain a stronger economy and less inflation by easing the burden on business and helping lower prices.
The government plans to appeal 4,418 laws and has pledged to cut £1bn in EU costs for businesses.
Mr Sefcovic has warned that the bloc will hit back on the withdrawals, especially given the row over the Northern Ireland Protocol.
He told Bloomberg: “A long shadow cast over our relationship in this way increases our vigilance, including with regard to UK statements about ‘scrapping EU regulations’, touted by some as a major benefit of Brexit.
READ MORE: ‘Wouldn’t Work’ Maros Sefcovic Beats Truss’ Brexit Bill
In other words, an end to mutual recognition is a possibility if the UK changes its standards. We are therefore keeping a close eye on developments.
“But even if regulatory divergence is practically and legally possible, it will add costs and further deepen trade barriers between the EU and the UK. Because more divergence means more friction and less trade – it’s that simple.”
He added that these kinds of actions “damage businesses on both sides of the Channel in times of economic pressure”.