Rishi Sunak announced a “decisive breakthrough” on post-Brexit trading arrangements with the EU.
Speaking at a press conference alongside EU chief Ursula von der Leyen at the Fairmont Windsor Park hotel, the Prime Minister said he had secured three major changes to the Northern Ireland Protocol as part of the "Windsor Framework".
The Protocol mechanism, agreed as part of the 2019 withdrawal agreement, effectively kept the province within the EU's single market and gave the European Court of Justice ultimate say over trade disputes.
Unionists had argued the international treaty undermined Northern Ireland's place within the UK.
Hailing his new deal with the EU this afternoon, Sunak said: “I’m pleased to report that we have now made a decisive breakthrough.
“Together we have changed the original protocol and are today announcing the new Windsor framework.
Sunak said the new agreement protects “Northern Ireland’s place within the union” and allows VAT and excise changes to be applied across the whole of the UK.
The Prime Minister said legal text has been changed in order to protect Northern Ireland's place in the UK, with a right to amend VAT.
Outlining the first major change, he said: “We’ve amended the legal text of the of the protocol to ensure we can make critical VAT and excise changes for the whole of the UK, for example alcohol duty, meaning our reforms to cut the cost of a pint in a pub will now apply in Northern Ireland.”
“For a quarter of a century the Belfast/Good Friday Agreement has endured because at its heart it is respectful to the aspirations and identity of all communities. Today’s agreement is about preserving that delicate balance and charting a new way forward for the people of Northern Ireland.
Rishi Sunak has come to an agreement with Ursula von der Leyen
Image: GB News
“Today’s agreement delivers smooth-flowing trade within the whole United Kingdom, protects Northern Ireland’s place in our union and safeguards sovereignty for the people of Northern Ireland.
"This means that if food is available on supermarket shelves in Great Britain, then it will be available on supermarket shelves in Northern Ireland.”
The Prime Minister added green and red lanes for trade have been introduced to allow seamless trade to Ireland.
He said: “Today’s agreement delivers the smooth flow of trade within the United Kingdom. Goods destined for Northern Ireland will travel through a new green lane with a separate red lane for goods at risk of moving on to the EU."
Rishi Sunak and Ursula von der Leyen deliver a speech following their Brexit agreement
Dan Kitwood
“Food retailers like supermarkets, restaurants and wholesalers will no longer need hundreds of certificates for every lorry and we will end the situation where food made to UK rules could not be sent to and sold in Northern Ireland.
"This means that if food is available on supermarket shelves in Great Britain, then it will be available on supermarket shelves in Northern Ireland.”
Bill Cash is one of the backbench Tory MPs Rishi Sunak will be hoping his agreement satisfies
Image: Parliament
Sunak added a "Stormont brake" can be applied in order to stop EU law in Northern Ireland.
The prime minister says the UK Government will be able to apply a veto should the brake be pulled.
It remains unseen as to whether Unionist MPs will back the motion, with Rishi Sunak potentially facing increased pressure should this not be the case.
The Prime Minister promised MPs would get a vote on the deal "at the appropriate time" and that the ballot "will be respected".
It remains unclear as to whether the DUP will support the agreement
Liam McBurney
Senior members of the Brexiteer European Research Group of Conservative MPs have vowed to carefully look at the legal implications of the new agreement before giving their consent to it.
Northern Ireland's Democratic Unionist Party (DUP) have also said they will carefully look at the details of the changes before giving their verdict.
The party has effectively blocked the sitting of Northern Ireland's devoted government in protest at the terms of the Protocol.
If the agreement fails to meet the red lines set by the party, it could mean the party continues to abstain from restoring the Stormont Assembly.