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Deal agreed on NI protocol – updated

[ February 27, 2023   //   ]

Rishi Sunak and European Commission president Ursula von der Leyen have agreed a deal on new post-Brexit trade arrangements for Northern Ireland, after months of behind-the-scenes negotiations.

Full details of the plan have yet to be revealed, but it includes green and red lanes for trade arriving into Northern Ireland from the GB mainland, depending on whether goods are destined – or likely to be destined – for Ireland.

The prime minister’s statement also suggested that existing grace periods including those for parcels will become permanent.

Logistics UK said the announcement that an agreement has been reached was positive news for industry, and it would now take time to work through the technical details with members.

Chief executive of FTA Ireland, Aidan Flynn, commented: “The announced breakthrough on the NI Protocol looks set to create greater certainty for businesses on the island of Ireland, EU and the UK, where focus can now move to supporting and strengthening trade relations. FTA Ireland will now prioritise reviewing the details of the agreement with its members.” 

Parcels broker ParcelHero meanwhile welcomed the new ‘Windsor Framework’, saying it would end checks and most red-tape on goods for sale or being delivered to Northern Ireland. However, it warned that any further delays in greenlighting the deal would hit the UK economy and weaken chances for further EU post-Brexit deals.

Head of consumer research, David Jinks said: “This agreement in principle means British goods destined for Northern Ireland will go through a Green Lane, without unnecessary checks and paperwork, while products destined for the Republic of Ireland will receive closer examination in the Red Lane. That seems an eminently sensible solution.

“It’s particularly pleasing that the new deal ends, once and for all, the threat that parcels sent from GB retailers and suppliers to NI customers would require a customs declaration. It also ends the threat of Customs paperwork for individuals sending parcels from the rest of the UK to friends and family in NI. So far this particularly contentious part of the original Protocol agreement has not been enforced, due to an extended grace period. It’s good to see that this requirement has now been officially dropped.

“We further welcome the Prime Minister’s statement that: “burdensome Customs bureaucracy will be scrapped” and that the deal will ensure the smooth flowing trade within the UK and remove “any sense of a border in the Irish Sea”.

He added: “The time has come for politicians to put aside ideology in favour of getting trade moving. Continuing uncertainty and bureaucracy are creating huge headaches for retailers simply wishing to continue trading in this vital part of the UK market, and for exporters hoping for wider UK-EU trading reforms.”

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