Britain & EU Close in On Crucial Brexit Deal for Northern Ireland
On the morning of December 24th, 2020, the United Kingdom and the European Union appear to have reached a landmark agreement on the future of Northern Ireland. After months of on-and-off negotiations, the two sides shocked the world by finalizing a Brexit deal that is expected to guarantee Northern Ireland’s place within the UK, while at the same time maintaining the status quo on the Irish border.
This lengthy and complex agreement is widely seen as a major breakthrough in the UK’s relationship with the EU and marks the first time since the Brexit Referendum that both sides have agreed on a course of action. The deal provides much-needed clarity on the future status of Northern Ireland, which has long been a contentious point between the two sides. Here, we take a closer look at what the new agreement involves and why it is so important.
The Significance of the Agreement
The new agreement is significant in several key ways:
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It provides much-needed certainty for businesses operating in Northern Ireland. The deal solves one of the most difficult issues that Brexit posed: How to keep the Irish border open without undermining the UK’s single market. This was the major sticking point in past negotiations and had been a major source of frustration for many businesses on both sides of the border. The agreement provides much needed clarity and cuts out the uncertainty that had been in the air.
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It also brings an end to the fate of the “backstop” which had been a major source of contention between the UK and EU. The backstop was originally designed to prevent a hard border in Northern Ireland, but it was seen by many as a way to keep the UK in the EU’s customs union. This would have been a major problem, as it would have prevented the UK from striking trade deals with other countries. The new agreement, however, eliminates the need for a backstop and makes it much easier for the UK to move forward with its post-Brexit plans.
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Finally, the agreement is significant because it has allayed fears that there could be a return of the Troubles in Northern Ireland. There had been fears that a hard border between the UK and the EU would create tensions and inflame old political wounds. This could have posed a major security risk and, at worst, could have led to a return of the violence that plagued the region for decades. The new settlement, however, obviates this risk and helps to ensure a lasting peace in the region.
The Contents of the Agreement
Now, let’s take a closer look at the contents of the agreement itself. In general, the agreement follows the same framework outlined in the December 2020 EU-UK Joint Report. It provides that:
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Northern Ireland will remain within the UK’s customs territory. This means that goods entering Northern Ireland from the EU will be subject to the same customs rules as goods entering the rest of the UK.
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There will be no hard border on the Irish island. Goods and services will flow freely between Northern Ireland and the Republic of Ireland. This ensures that businesses in the region can continue trading without interruption.
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Northern Ireland will remain in the EU’s Single Market for Value Added Tax (VAT). This means that goods and services sold in Northern Ireland will continue to be subject to EU-wide VAT rules.
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The EU will recognize the UK’s right to set its own trade policies. This means that the UK will be free to negotiate and sign trade deals with other countries.
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Northern Ireland will remain subject to EU state aid rules. This is important, as it ensures that the UK government cannot give unfair advantages to businesses operating in Northern Ireland.
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The UK will have the right to set its own regulations on goods entering Northern Ireland from the rest of the UK. This will help ensure that businesses within the UK maintain the same competitive edge that they do now.
The agreement between the UK and the EU is a huge step forward for both sides and is sure to be welcomed by businesses and citizens alike. It brings much-needed clarity to the ambiguous post-Brexit landscape and should help to calm tensions in the region. Now, it is up to both sides to ensure that the agreement is implemented quickly and efficiently. Only then can we be sure that Northern Ireland will remain in the UK, while at the same time preserving the open-border that has served the region so well for so many years.
