The UK and European Union reached a new deal on Northern Ireland’s trading arrangements aimed at ending years of often acrimonious wrangling and paving the way for warmer relations more than half a decade after Britons voted for Brexit.
(Bloomberg) — The UK and European Union reached a new deal on Northern Ireland’s trading arrangements aimed at ending years of often acrimonious wrangling and paving the way for warmer relations more than half a decade after Britons voted for Brexit.
Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen said negotiations had led to a change in the legal text of the Northern Ireland Protocol, a part of the UK’s divorce deal with the EU governing trade with the region.
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Sunak said sealing the deal — known as the “Windsor Framework” — was a “decisive moment,” while von der Leyen described it as “extraordinary” and said it would ensure a “long-lasting” solution for all parties.
“Today’s agreement delivers smooth flowing trade within the whole United Kingdom, protects Northern Ireland’s place in our union, and safeguards sovereignty for the people of Northern Ireland,” Sunak said on Monday in a press conference alongside von der Leyen.
It’s an achievement for the British prime minister, who has sought to dial down tensions with the bloc since taking power in October and has been rewarded with EU concessions. The deal could also pave the way for closer collaboration between the two sides on financial services, security, scientific research, and immigration.
The two sides have been negotiating over new terms to ease trade flows between Britain and Northern Ireland and put to rest the biggest hangover of Brexit three years after the formal divorce.
The original treaty gave Northern Ireland unique access to both the UK and EU markets, but effectively imposed a customs border in the Irish Sea between the Great Britain and the region. That proved tough to implement and controversial in the challenging politics of the region. It also became a tempting target for pro-Brexit politicians eager to prolong the battle with Brussels.
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Sunak said the new deal took several “big steps forward” that would be an improvement on the existing Protocol. They include:
- A “green” and “red lane” system, with goods traveling from Great Britain to Northern Ireland requiring less onerous checks and paperwork than those destined for the EU
- Removal of existing requirements on trade from Northern Ireland to Great Britain, as well as on pets and parcels traveling between the two regions
- The ability of the UK government to make decisions on value added tax and excise changes that could apply in Northern Ireland as well as Great Britain
- Medicines approved by the UK regulator will automatically become available in Northern Ireland.
In an attempt to address unionist concerns on Northern Ireland’s governance, Sunak announced a new “Stormont Brake.” That will allow the Northern Ireland Assembly to oppose revised or amended EU goods rules through a “petition of concern” mechanism, requiring the support of 30 Northern Irish Assembly members from at least two parties. The UK government would then decide whether to veto the application of that new EU rule.
EU officials described the brake as a measure of last resort that would only apply when the bloc amends or replaces existing laws that would have a significant and persistent impact on everyday lives of people in Northern Ireland. If London triggers the brake, the EU would be empowered to take unspecified measures to protect its internal market, officials said.
Finally, if the EU disagreed with the UK on whether the conditions were met to trigger the mechanism, a dispute resolution will be available. EU officials said the European Court of Justice wouldn’t be involved in this process but would continue to be the sole arbiter of EU law.
Nevertheless, in a further sign of thawing tensions, the UK government said it would drop the Northern Ireland Protocol Bill. The legislation was introduced by former Prime Minister Boris Johnson in a highly controversial threat to the EU to override the Protocol.
Von der Leyen met later Monday with King Charles III, while European Commission vice president Maros Sefcovic briefed member states on the terms of the agreement on Monday afternoon. The UK prime minister will brief the House of Commons on the deal Monday evening.
Clinching a revised deal was an outcome that sometimes seemed impossible for the UK government and threatened to spark a trade war as tensions rose in 2022.
But there could still be peril ahead. Sunak was unable to convince unionists in Northern Ireland and Brexiteers in his own ruling Conservative Party to endorse the agreement last week. He said on Monday that parties would want to consider the details of the deal, a process that will take “time and care.”
Parliamentary Vote
For the past year, the Democratic Unionist Party has blocked the formation of Northern Ireland’s power-sharing government in protest at the protocol. Without DUP support for the new deal the region’s constitutional crisis risks dragging on.
UK officials said in recent weeks that they believed the deal they were heading toward would meet the seven tests set by the DUP for an acceptable resolution. But an announcement was delayed for days because of DUP concerns, with leader Jeffrey Donaldson proving hard to win round.
Donaldson responded to Monday’s announcement by saying he and his party would “study the detail” in the coming days and may still seek “clarification, re-working or change.”
“In broad terms it is clear that significant progress has been secured across a number of areas,” Donaldson said. However he warned: “There can be no disguising the fact that in some sectors of our economy EU law remains applicable in Northern Ireland.”
Sunak also needs to keep onside ardent Brexit-backers in his own party, many of whom are close to the DUP. He leads a party riven by internal divisions after nearly 13 years in power, and any mismanagement risks a rebellion.
MPs are likely to be given a vote on the agreement next week, according to a person with knowledge of the plan.
The European Research Group — a staunchly pro-Brexit caucus of the Conservative Party — will hold a meeting to discuss the terms of the deal Tuesday evening, according to a person familiar.
Though the agreement may not require a vote in the House of Commons — the process that ultimately brought down Theresa May in 2019 — Sunak said Parliament would get the chance to do so, when the time is “appropriate.”
–With assistance from Alex Wickham and Morwenna Coniam.
(Updates with context of Northern Ireland trade fight in seventh paragraph.)
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