London Daily

Focus on the big picture.

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

London Daily
0:00
0:00
Close
UK Maintains Non-negotiable Stance on Falklands and Gibraltar
Controversy Surrounds A75 Road Closures and 96-Mile Diversion
Crunch Time in Conservative Leadership Race
Keir Starmer's Challenges in the Wake of Sue Gray's Departure
Coroner Urges UK Government to Improve Severe ME Care
Starmer Calls for De-escalation in Middle East Amid Heightened Tensions
Chancellor Reeves Decides Against Pension Tax Hike
UK Advocates Urge Tobacco Windfall Tax and Permanent Levy
Starmer's Chief of Staff Plans Major Overhaul at Downing Street
Key Labour Thinktank Advocates New Powers for Mayors
Rachel Reeves Considers New Fiscal Rules for Infrastructure Spending
Great Britain Faces Lowest Winter Blackout Risk in Four Years
The Impact of Online Culture on Young Women: Survey Insights
Hypersonic Jet to Revolutionize Air Travel
Russian Medic Arrested for Alleged Satanism and Promoting LGBTQ Rights
UK: Chagos Islands Deal Was About Securing US Military Base
RT has converted key archive speeches delivered by Putin into spoken English using the help of AI
Walmart is now selling a new book titled The Achievements of Kamala Harris—and all the pages are blank.
Bill Gates: "6% of global emissions are cows... You can either fix the cows to stop them farting, or you can make beef without the cow."
Facilitated Communication: Miracle Tool or Manipulative Method?
The Allure of Browsing Online Property Portals: A Modern Obsession
Suspected Acid Attacker in London Bailed Amid Investigation
Tragic Channel Crossing: Four Migrants Killed
Labour Cabinet Ministers' Stances on Assisted Dying
The Influence of Tory Members on Party Leadership
UK Plans Major Overhaul of Employment Rights
UK Food Industry Lobbying Delays £1.7 Billion Plastic Packaging Tax
New UK Tipping Law Sparks Confusion Among Restaurant Staff
Debate Heats Up Over Assisted Dying Legislation in the UK
New Personalized Cancer Therapies Undergo Extensive Clinical Study
UAE Energy Minister: OPEC+ Doing a 'Noble' Job in Balancing Oil Market
Call for Wealth Tax Hikes to Curb Reform UK's Rise
Labour MP Supports Chancellor's Rejection of Wealth Tax
Debate Intensifies Over VAT Introduction for UK Private Schools
Israel Plans Retaliation Against Iran Amid Rising Regional Tensions
Norwegian Police Conclude 'Spy Whale' Hvaldimir's Death Due to Infection
Dominica Sells Citizenship to Boost Climate Resilience
Greta Thunberg Detained in Brussels During Protest Against Fossil Fuel Subsidies
UK Returns Chagos Islands to Mauritius After Decades-Long Dispute
UK Reaffirms Commitment to Overseas Territories Amid Falkland Islands Dispute
France's Silent March Supports Gisèle Pelicot: A Shocking Case
Robert Jenrick's Leadership Prospects: Challenges from the Right
Declining Interest in Grammar Schools Amid VAT Concerns
Emirates Bans Pagers and Walkie-Talkies on All Flights
Malaysian Father Burns Son's Motorbike to Prevent Racing Accidents
Donald Trump Urges Israel to Hit Iran's Nuclear Facilities First
Private Schools Face Enrollment Decline Due to Impending VAT on Fees
Wetherspoon’s CEO Criticizes Smaller Beer Glass Proposal and Licensing Hour Reduction
Starmer Defends UK Chagos Islands Decision Amidst Tory Criticism
Naomi Campbell Banned from Charity Work After Fashion for Relief Mismanagement
×