London Daily

Focus on the big picture.
Sunday, Jun 01, 2025

Factbox: Britain's new Brexit trade deal - what has been agreed?

Factbox: Britain's new Brexit trade deal - what has been agreed?

Britain and the European Union announced a new deal for post-Brexit trading arrangements for Northern Ireland on Monday 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.

Below are the key parts of the new framework outlined by Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen at a news conference and in British government documents:


FREE FLOW OF TRADE


When Britain left the EU, then Prime Minister Boris Johnson agreed to a deal that effectively left Northern Ireland in the bloc's single market for goods because of its open border with EU member Ireland, creating a customs border with mainland Britain.

The British government has wanted to reduce the number of checks on goods travelling from Britain to Northern Ireland.

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.

"Today’s agreement delivers smooth flowing trade within the whole United Kingdom," Sunak said. "It means food retailers like supermarkets, restaurants and wholesalers will no longer need hundreds of certificates for every lorry."


EU LAWS


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.

The Northern Ireland Assembly will now be able to "pull an emergency brake" to stop new EU single market rules applying if 30 out of the 90 members from at least two parties oppose the meeasures.

If the threshold is met they can ask the UK government to apply a veto to the new laws.

Von der Leyen said said Britain and the EU would consult each other extensively when introducing new laws and regulatory changes in an effort to reduce the need for using the brake.

But she said that the European Court of Justice will remain the ultimate arbiter of whether Northern Ireland is following single market rules.

The Democratic Unionist Party (DUP), Northern Ireland's biggest unionist party, which is being closely watched for its reaction, said the new deal shows "significant progress", but stopped short of supporting it at this stage because EU law remains applicable.


VALUE ADDED TAX AND STATE AID


Businesses in Northern Ireland currently follow EU rules on state aid and 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 and subsidies in most instances in the province.


HORIZON


Under a trade agreement signed at the end of 2020, Britain negotiated access to a range of science and innovation programmes including Horizon, a 95.5 billion euro ($101 billion)programme that offers grants and projects to researchers.

But the EU had blocked Britain's participation because of the government's stance on the Northern Ireland protocol. British scientists had been deeply concerned about missing out on funding.

Von der Leyen said once the new deal is implemented work would begin on restarting Britain's cooperation with Horizon.

"This is good news for all those who are working in research and science," she said.

($1 = 0.9443 euros)

Newsletter

Related Articles

0:00
0:00
Close
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
×