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Trade with Northern Ireland was one of the most difficult issues during the Brexit process, as from January 1 Northern Ireland will be the only UK territory to have a land border with the EU.
Goods traveling from the main UK territory to Northern Ireland were exposed to customs duties and taxes for fear of not entering the EU single market via the EU-owned Republic of Ireland.
However, London said it would be unacceptable as such a scenario would separate Northern Ireland from the rest of the UK.
UK Senior Minister Michael Gove confirmed that an agreement reached in Brussels this week ensured that Northern Ireland’s business would be “duty free”.
“British sausages will continue to travel to Belfast and Ballymena in the New Year,” Gove told lawmakers.
He also stated that the “trusted merchant” scheme “will ensure that products sold in Northern Ireland and companies operating in Northern Ireland are not taxed.”
Irish state broadcaster RTE has announced that up to 98% of the tax will be exempt from January 1. products imported to Northern Ireland from England, Scotland and Wales.
“The remaining two percent will potentially be eligible for a tax refund,” the report said. It adds that the levies will only apply if the UK and the EU do not agree on free trade in separate negotiations.
However, despite months of negotiations, it seems difficult to reach an agreement before the December 31 deadline.
A separate agreement on Northern Ireland trade provides for the presence of EU observers in provincial ports but, according to UK officials, they will not have the power to carry out inspections independently.
They also won’t be able to wear uniforms, according to Gove. There will be no chance for the EU to establish its own “mini embassy” in Northern Ireland, the minister said, reassuring some pro-EU conservatives who feared such a prospect.
There will be “limited and proportionate” border crossings on the Northern Ireland-Ireland border to inspect part of the transport of food and animals, Gove added.
The open border between the Republic of Ireland and Northern Ireland is one of the key provisions included in the Good Friday 1998 agreements, which effectively ended more than 30 years of violence in Northern Ireland.
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