NUNZIUM

News That Matters

28.02.2023
THEME: POLITICS

UK and EU seal a deal to resolve trade dispute over Northern Ireland

Northern Ireland is a region in the northeast of the island of Ireland that has been a part of the United Kingdom since its creation in 1921. The region was created due to the Government of Ireland Act 1920, which partitioned Ireland into two separate entities: Northern Ireland, which remained part of the UK, and the Irish Free State, which later became the Republic of Ireland. The partition of Ireland was a contentious issue, with many Irish nationalists opposing it and seeking a united Ireland. This led to a conflict known as the Troubles, which lasted from the late 1960s until the Good Friday Agreement of 1998. The conflict was primarily between Irish nationalists, who wanted Northern Ireland reunited with the rest of Ireland, and unionists, who wanted Northern Ireland to remain part of the UK. The Good Friday Agreement established a power-sharing government in Northern Ireland, with representatives from both nationalist and unionist parties. The agreement also included provisions for decommissioning paramilitary weapons and prisoners' early release.

Brexit has had significant implications for Northern Ireland, as it shares a land border with the Republic of Ireland, an EU member state. The UK's decision to leave the EU meant that a border would need to be established between Northern Ireland and the Republic of Ireland, which raised concerns about the potential impact on the peace process. The Northern Ireland Protocol, included in the Brexit Withdrawal Agreement, aims to avoid a hard border on the island of Ireland by keeping Northern Ireland aligned with some EU rules, which has led to some trade barriers between Northern Ireland and the rest of the UK. The Protocol has been a contentious issue in Northern Ireland, with some unionists opposing it and some nationalists supporting it.

On Monday, February 27, UK Prime Minister Rishi Sunak and EU Commission Chief Ursula von der Leyen sealed a deal to resolve their strained post-Brexit trade dispute over Northern Ireland. The critical point of the agreement is the definition of two different lanes for good export from the UK to Ireland. Goods from Britain destined for Northern Ireland will travel through a new "green lane, " with reduced checks and paperwork. A separate "red lane" is instead for goods at risk of moving into the EU, which will be subject to usual checks according to the EU regulations. Under the new deal, UK VAT and excise rules will apply to Northern Ireland for alcoholic drinks for immediate consumption and immovable goods such as heat pumps - EU VAT rules will still apply for other items. A procedure is also agreed on to allow the Northern Ireland Assembly to object to new EU rules that introduce substantial changes. Finally, it will be easier for pet owners to travel between the UK and Northern Ireland. Monday's outcome has been primarily hailed positively between Dublin, Belfast, London and Brussels. But the deal is not yet entirely over the line, as Sunak still needs to appease and get the backing from some Conservative party members and Northern Ireland's politicians – especially the Democratic Unionist Party (DUP) members.