UK PM Sunak strikes deal with EU over Northern Ireland
BRITAIN and the European Union announced a new deal for post-Brexit trading arrangements for Northern Ireland on Monday (Feb 27) in a bid to end a row that has overshadowed their ties since Brexit.
The deal seeks to resolve the tensions caused by the Northern Ireland protocol, a complex agreement which set the trading rules for the British-ruled region that London agreed before it left the EU but now says are unworkable.
The two sides have agreed to separate goods just going to Northern Ireland and those which will continue into the EU into “green” and “red” lanes.
This is designed to reduce the paperwork facing companies that have said they were unable to provide a full range of products to Northern Ireland because the number of checks were too onerous.
Under the earlier deal agreed with the EU, Northern Ireland followed some of the bloc’s laws so that goods flow freely over the border with Ireland without checks.
Prime Minister Rishi Sunak said at a news conference that the Northern Ireland Assembly will now be able to “pull an emergency brake” on any changes to EU rules and the UK government will “have a veto”.
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Businesses in Northern Ireland currently follow EU rules on value-added tax (VAT). This means tax breaks by British government payments to help firms in Northern Ireland must be compliant with rules set by the EU.
Under the new deal, the British government will have freedom to set VAT in the province.
“Parliament will have a vote at the appropriate time and that vote will be respected,” Sunak told reporters at a news conference with European Commission President Ursula von der Leyen.
The European Court of Justice (ECJ) will have the final say on European Union law and single market issues, said von der Leyen. REUTERS
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