The Northern Ireland Protocol Bill, published on 13 June 2022, aims to amend the operation of the Northern Ireland Protocol in the domestic law of the UK. It will disapply elements of the Protocol and provide delegated powers to government ministers to make new law in connection with the Protocol, including where provisions cease to have effect in the UK and to implement any agreement with the EU regarding the Protocol.
Leaving aside the political implications, the Bill will allow the UK government to address practical problems the Protocol has created in Northern Ireland in the following areas:
Customs processes: green and red channels will be introduced to remove unnecessary costs and paperwork for businesses trading within the UK, while ensuring full checks are required for goods entering the EU. Goods staying in the UK will no longer be subject to checks and duties, with only ordinary commercial information required. A new trusted trader scheme will be introduced to support this. Goods going to the EU, or moved by traders not in the new trusted trader scheme, would be subject to full checks and controls and full customs procedures.
More flexible regulation: businesses will have the choice of placing goods on the market in Northern Ireland according to either UK or EU goods rules, to ensure that Northern Ireland consumers are not prevented from buying UK-standard goods where UK standards have diverged from EU standards.
Tax discrepancies: the Bill will ensure that Northern Ireland can benefit from the same tax and spending policies as the rest of the UK, including, for example, VAT cuts on energy-saving materials. The existing arrangements in the Protocol on VAT and excise to support trade on the island of Ireland would be maintained, but there will be the ability to adapt or disapply rules.
Governance: disputes will be resolved by independent arbitration and not by the European Court of Justice.
The arrangements for the common travel area remain unchanged. The provisions can be replaced by a negotiated settlement, if one is agreed with the EU. The majority of the Bill will come into force on a date set by regulations, though the final provisions in clauses 21–25, primarily regarding the introduction of regulations, will come into force on the date of Royal Assent.
In a statement on 13 June, Maroš Šefčovič, Vice-President of the European Commission, confirms the EU’s view that there will be no renegotiation of the Protocol, noting that the relationship between the EU and UK must ‘be based on the full respect of the legally binding commitments that we have made to one another’ and that the Protocol was ‘the one and only solution we could jointly find to protect the hard-earned gains of the peace process in Northern Ireland, while addressing the challenges created by Brexit, and the type of Brexit chosen by the UK government’.
Although EU remains open to the possibility of exploring ‘the full potential of the flexibilities put forward’, Šefčovič notes that ‘only joint solutions would create the legal certainty that people and businesses in Northern Ireland deserve’ and that unilateral action by the UK to disapply core element of the protocol puts Northern Ireland’s access to the EU single market for goods at risk.
The Commission is considering continuing its infringement action against the UK government which it started in March 2021 but which had been put on hold while talks continued. In parallel with legal action, the Commission also intends to present ‘in greater details’ its model for flexible implementation of the Protocol.
The Northern Ireland Protocol Bill, published on 13 June 2022, aims to amend the operation of the Northern Ireland Protocol in the domestic law of the UK. It will disapply elements of the Protocol and provide delegated powers to government ministers to make new law in connection with the Protocol, including where provisions cease to have effect in the UK and to implement any agreement with the EU regarding the Protocol.
Leaving aside the political implications, the Bill will allow the UK government to address practical problems the Protocol has created in Northern Ireland in the following areas:
Customs processes: green and red channels will be introduced to remove unnecessary costs and paperwork for businesses trading within the UK, while ensuring full checks are required for goods entering the EU. Goods staying in the UK will no longer be subject to checks and duties, with only ordinary commercial information required. A new trusted trader scheme will be introduced to support this. Goods going to the EU, or moved by traders not in the new trusted trader scheme, would be subject to full checks and controls and full customs procedures.
More flexible regulation: businesses will have the choice of placing goods on the market in Northern Ireland according to either UK or EU goods rules, to ensure that Northern Ireland consumers are not prevented from buying UK-standard goods where UK standards have diverged from EU standards.
Tax discrepancies: the Bill will ensure that Northern Ireland can benefit from the same tax and spending policies as the rest of the UK, including, for example, VAT cuts on energy-saving materials. The existing arrangements in the Protocol on VAT and excise to support trade on the island of Ireland would be maintained, but there will be the ability to adapt or disapply rules.
Governance: disputes will be resolved by independent arbitration and not by the European Court of Justice.
The arrangements for the common travel area remain unchanged. The provisions can be replaced by a negotiated settlement, if one is agreed with the EU. The majority of the Bill will come into force on a date set by regulations, though the final provisions in clauses 21–25, primarily regarding the introduction of regulations, will come into force on the date of Royal Assent.
In a statement on 13 June, Maroš Šefčovič, Vice-President of the European Commission, confirms the EU’s view that there will be no renegotiation of the Protocol, noting that the relationship between the EU and UK must ‘be based on the full respect of the legally binding commitments that we have made to one another’ and that the Protocol was ‘the one and only solution we could jointly find to protect the hard-earned gains of the peace process in Northern Ireland, while addressing the challenges created by Brexit, and the type of Brexit chosen by the UK government’.
Although EU remains open to the possibility of exploring ‘the full potential of the flexibilities put forward’, Šefčovič notes that ‘only joint solutions would create the legal certainty that people and businesses in Northern Ireland deserve’ and that unilateral action by the UK to disapply core element of the protocol puts Northern Ireland’s access to the EU single market for goods at risk.
The Commission is considering continuing its infringement action against the UK government which it started in March 2021 but which had been put on hold while talks continued. In parallel with legal action, the Commission also intends to present ‘in greater details’ its model for flexible implementation of the Protocol.
