The government has scrapped the controversial Northern Ireland Protocol Bill as there is now ‘no legal justification’ for it. The EU will therefore drop the legal actions it launched against the UK over the Bill.
The framework, announced by Prime Minister Rishi Sunak and president of the European Commission Ursula von der Leyen this week, restricts the application of EU rules to the ‘minimum necessary’ so that less than 3% will be applicable. The oversight of the European Court of Justice is retained for matters of EU law only.
UK VAT and excise rules will now apply for alcoholic drinks for immediate consumption and immovable goods, whereas EU VAT rules could be applied under the Northern Ireland Protocol. However, EU VAT will still apply to other items.
A ‘Stormont brake’ is introduced, under which the Northern Ireland Assembly can oppose new EU goods rules that would have ‘significant and lasting effects’ on the people of Northern Ireland. In order to trigger the brake, the support of 30 members from at least two parties is required.
Bureaucracy on trade will be reduced through the use of a green lane and red lane, the former being used to fast-track goods intended to stay in Northern Ireland by removing customs checks and certifications. With a supermarket truck having to provide 500 certificates under the Northern Ireland Protocol, it can now simply make a declaration that the goods will stay in Northern Ireland. The red lane will be used for goods intended to enter the EU.
The same medicines with the same labels will be available across the UK, without the barcode scanning requirements of the Protocol. Similarly, the framework ends the restrictions on movement of seed potatoes, oak trees and other plants between Northern Ireland and the rest of the UK.
Sunak said the agreement was ‘written in the language of laws and treaties. But really, it’s about much more than that. It’s about stability in Northern Ireland. It’s about real people and real businesses.’
