Regulatory divergence would prolong EU-UK tensions

Significance

Thus far, the UK government has signalled a willingness to diverge from the EU’s GDPR regulations and from standards on gene editing, medical devices, chemicals and trademarks.

Impacts

• The United Kingdom could be exempt from the EU’s carbon border mechanism if it aligns its emissions trading scheme with the EU's ETS.
• Regulatory divergence from the EU could create conflict between London and the devolved governments of the United Kingdom.
• Divergence would undermine the prospects of closer trade integration between the EU and UK economies.