The EU has threatened the UK with legal action if it does not ditch a bill to override key parts of the Brexit divorce deal “by the end of the month”.
In a statement following emergency talks between the two sides, the EU said the bill “seriously damaged trust between the EU and the UK”.
The UK government said its Parliament was sovereign and could pass laws which breach the UK’s treaty obligations.
Meanwhile, trade talks between UK and EU officials continue in London.
The source of the EU’s concern is Prime Minister Boris Johnson’s proposed Internal Market Bill, which was published on Wednesday.
It addresses the Northern Ireland Protocol – an element of the withdrawal agreement designed to prevent a hard border returning to the island of Ireland.