London unveils unilateral plans

Post-Brexit N Ireland trade

The UK government yesterday announced its intention to drastically overhaul post-Brexit trade rules in Northern Ireland, arguing the plan was needed to end political paralysis in the territory but risking a trade war with the EU.

Foreign Secretary Liz Truss said she would introduce legislation reforming the so-called Northern Ireland Protocol "in the coming weeks" -- unless Brussels caves on its insistence that the pact cannot be rewritten.

The protocol was agreed as part of Britain's 2019 Brexit divorce deal with the European Union, recognising Northern Ireland's status as a post-conflict territory that shared the UK's new land border with an EU member.

Its requirement for checks on goods arriving from England, Scotland and Wales has infuriated pro-UK unionists in Northern Ireland, who claim the protocol is undermining their place within the UK and are refusing to join a new power-sharing government in Belfast.

"Our preference remains a negotiated solution with the EU, and in parallel with the legislation being introduced, we remain open to further talks," Truss told parliament.

Truss denied Britain was breaching international law by effectively abrogating a key element of the Brexit deal, arguing that the government had tried to implement the protocol "in good faith" but had been stymied by EU inflexibility.

The largest pro-British party, the Democratic Unionist Party (DUP), said it would not share power with pro-Irish rivals Sinn Fein until the protocol is reworked.

Its hard line came nearly two weeks after Sinn Fein won a historic victory in elections for the devolved Stormont assembly, which entitled the party to the role of first minister in a joint executive with the DUP.

Under the new plan, the UK intends unilaterally to create a "green channel" for British traders to send goods to Northern Ireland without making any customs declaration to the EU.

The EU would have access to more real-time UK data on the flow of goods, and only businesses intending to trade into the single market via Ireland would be required to make declarations. The EU would need to trust the UK to monitor the flow, and Truss vowed "robust penalties" for any companies seeking to abuse the new system.