The Bill has also caused controversy because it also proposes to grant ministers powers to override parts of the Brexit Withdrawal Agreement that the UK concluded with the EU last year, in particular, in relation to the terms of the Northern Ireland Protocol.
Competition law expert Totis Kotsonis of Pinsent Masons said: "The government has acknowledged that this is a breach of the UK’s obligations in international law. Commentators have also argued that this may impact the UK’s ability to negotiate international trade agreements with third countries".
"At the time of writing, the EU has made it clear that it expects the UK government to amend the Bill so that it does not lead to the UK breaching its obligations under the Withdrawal Agreement. A potential stand-off on this issue could lead to the two sides failing to reach an agreement on a trade deal by the end of the transition period".
Francis added: "Ultimately, this raises more uncertainty about future trading relationships and what practical challenges there will be to UK-EU trading going forward. With the end of the transition period looming and the impact of the Covid-19 pandemic still at the fore, businesses must have a clear understanding of the type of Brexit they face so they can plan, adjust and future-proof where necessary".
The government has also announced the creation of a new Office for the Internal Market (OIM) to monitor and report on the smooth running of UK trade. The OIM, which will be set up within the Competition and Markets Authority (CMA), will also provide independent technical advice to the UK parliament and the devolved administrations on regulation that may damage the UK's internal market.
Competition law expert Alan Davis of Pinsent Masons said: "The CMA has had a long-standing advocacy role in advising and making recommendations to the government on the impact on competition arising from legislative proposals. Its OIM role will be advisory and non-binding, with any disputes that arise needing to be resolved politically, or in the courts".