A “decisive breakthrough” has been made with the European Union over post-Brexit trade arrangements for Northern Ireland, the Prime Minister has confirmed.
Rishi Sunak presented the “new Windsor framework” at a press conference with EU chief Ursula von der Leyen today, three years after the original Brexit deal.
Speaking on Monday, the British leader acknowledged that the UK and the EU “have our differences” but declared “the beginning of a new chapter in our relationship”.
The agreement includes green lane and red lane trade routes – with goods remaining in the UK using the green lane to avoid customs red tape and goods moving into the EU being sent on the red lane.
A “landmark” drug settlement has also been promised, as drugs approved for use by the UK medicines regulator will automatically become available in every pharmacy and hospital in Northern Ireland.
The deal comes with a new ‘Stormont brake’ – a move designed to ‘safeguard’ Northern Ireland’s sovereignty.
“The elected Assembly can put the brakes on changes to EU rules on goods that will have significant and lasting effects on everyday life,” said Mr Sunak. “When he withdraws, the UK government will have a veto.”
He promised his deal would deliver “the smooth flow of trade across the UK, protect Northern Ireland’s place in our union and ensure the sovereignty of the people of Northern Ireland”.
However, there are still hurdles to overcome as Mr Sunak must now seek to win the support of unionists and Tory Eurosceptics.
Parliament will have a vote on the deal “and that vote will be respected”, he announced today after officials previously refused to confirm this would happen.
Ms von der Leyen said the European Court of Justice (ECJ) was the “sole and ultimate arbiter of EU law” and would have the “final say” on single market decisions.
“Extensive consultations” with the UK and Northern Ireland will regulate the system, he added.
The EU chief will continue to have tea with the king at Windsor Castle, despite criticism that the meeting would drag Charles into the politically contentious deal.
The Prime Minister said: “For a quarter of a century the Belfast/Good Friday Agreement has endured because at its heart it respects the aspirations and identity of all communities. Today’s agreement is about maintaining that delicate balance and charting a new course for the people of Northern Ireland.”
After unveiling the planned red and green strips, he said: “Food retailers such as supermarkets, restaurants and wholesalers will no longer need hundreds of certificates for each lorry and we will end the situation where food produced under UK rules of the Kingdom could not be sent and sold in Northern Ireland.
“This means that if food is available on supermarket shelves in Great Britain, then it will be available on supermarket shelves in Northern Ireland.”
Continuing to refer to the parcel shipping and VAT process, he added: “This means we have removed any sense of a border in the Irish Sea. Secondly, we have protected Northern Ireland’s place in the Union.’
Ms von der Leyen said she was “proud” to keep her commitment to fix problems with the Northern Ireland Protocol.
“This new framework will allow us to start a new chapter,” he said. “It provides long-term solutions that we are both confident will work for all people and businesses in Northern Ireland. Solutions that directly respond to the concerns they have raised.’
The prime minister hopes the deal will win the approval of the Democratic Unionist Party (DUP) so that devolution can be restored in Northern Ireland to reopen Stormont.
Mr Sunak said he understood the parties would want to review the deal in detail, “a process that will take time and care”.
Party leader Sir Jeffrey Donaldson previously said: “We will take our time to look at the detail and measure an agreement against our seven tests.”
The pound and the UK’s biggest companies fell as the prime minister and Ms von der Leyen began speaking at a news conference in Windsor.
Both sterling and the FTSE 100 were trading higher earlier in the day in anticipation of a new Brexit deal, but gave back some of those gains during the press conference.
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