Talks between the European Union (EU) and the UK are set to resume this afternoon (Thursday, October 6) on issues surrounding Brexit, including the Northern Ireland Protocol.
Discussions had stalled between the UK and EU in February but talks are set to resume between the vice-president of the European Commission, Maros Sefcovic, and the new UK Foreign Secretary, James Cleverly today.
The EU launched legal action against the UK in June, when the UK planned to bring a bill altering parts of the protocol that were agreed during the Brexit deal signed at the end of 2020 to parliament.
A grace period had been agreed between the UK and EU on delaying full customs checks at the Northern Ireland border, but the UK government has signaled its intentions to delay imposing full checks, thus breaching the agreement.
The EU Commission is alleging that the UK has:
- Failed to comply with the applicable customs requirements, supervision requirements and risk controls on the movement of goods from Northern Ireland to Great Britain;
- Failed to notify the transposition of EU legislation laying down general EU rules on excise duties, which will become applicable from February 13, 2023;
- Failed to notify the transposition of EU rules on excise duties on alcohol and alcoholic beverages, which facilitate access for small and artisan producers to lower excise duty rates, among other provisions;
- Failed to implement EU rules on Value Added Tax (VAT) for e-commerce, namely the Import One-Stop Shop (IOSS) which allows businesses to comply with VAT obligations on distance sales of imported goods.
The Northern Ireland Protocol Bill references four principal legislative changes to the previously agreed Brexit arrangements.
These are:
- The introduction of green and red channels to remove unnecessary costs and paperwork for businesses trading within the UK, while ensuring full checks are done for goods entering the European Union (EU);
- Businesses would have the choice of placing goods on the market in Northern Ireland, according to either UK or EU goods rules, ensuring Northern Irish consumers are not prevented from buying UK standard goods, assuming that UK and EU regulations diverge over time;
- Northern Ireland would be subject to the exact same tax and spending policies as would be the case for Great Britain (GB). Specifically, VAT would be included in this context;
- Brexit-related disputes would be resolved by independent arbitration and not by the European Court of Justice.
Minister for Foreign Affairs, Simon Coveney, has confirmed that October 28, this year, will be a key date in the evolution of the Northern Ireland Protocol.
He inferred that the October date is the deadline that has been set for the calling of new elections in Northern Ireland.
The foreign minister believes that the UK is using the Northern Ireland Protocol legislation, currently making its way through Westminster, as a negotiating ploy during talks with the EU.
He also confirmed the commitment of the European Union to be as flexible as possible, when it comes to the full implementation of the protocol.
However, all future arrangements must be based within a scenario, which sees Northern Ireland remaining inside the EU Single Market for goods, he explained.