Brexit customs deal close as UK-EU talks poised to intensify

The UK and European Union are nearing an agreement on customs aimed at reducing trade friction between Great Britain and Northern Ireland as they prepare to intensify wider post-Brexit negotiations.

Officials hope to announce significant progress toward a solution for customs arrangements if discussions go well over the coming days, according to people familiar with the matter. Talks are ongoing and a successful outcome is not guaranteed, the people said.

While talks continue on technical matters, UK Foreign Secretary James Cleverly and European Commission Vice-President Maros Sefcovic will take stock Monday with a view on how the two sides can reach a comprehensive deal. The aim is to then move into a negotiating “tunnel” of intensive talks, though big gaps remain on many issues. 

“We continue to work closely with our EU counterparts,” Prime Minister Rishi Sunak’s spokesman Jamie Davies told reporters in a regular briefing on Friday. “It remains our ambition to try and reach an agreement as soon as we can with the EU.” The commission did not immediately comment.

The long-running talks gathered momentum this week after the EU agreed to use a real-time UK database tracking goods moving over the Irish sea border. The database agreement will allow the EU to make real-time risk assessments on goods coming into their single market — unlocking the possibility of a deal over customs.

The UK has proposed “green” and “red” customs lanes for goods, separating those only going to Northern Ireland from those which will continue into the EU. The plan would be underpinned by a “trusted trader” program. The EU proposal is for an “express” lane, which would still require suppliers to complete some customs paperwork.

Disputes over the Northern Ireland protocol have caused frictions since the wider UK-EU Brexit deal saw both sides agree to avoid a land border on the island of Ireland. That effectively placed a frontier in the Irish Sea, and allowed Northern Ireland to remain in the EU’s single market.

After two years of rancor, the two sides now hope to unlock a comprehensive deal on Northern Ireland by the end of February, ahead of the April anniversary of the 1998 Belfast peace agreement, Bloomberg previously reported. 

More complex issues beyond customs remain, including checks on agri-food products and the role of the European Court of Justice. Any deal would also need to be pitched to the ruling Conservative Party in London and the Democratic Unionist Party in Northern Ireland, which is staunchly opposed to the protocol. 

But Sunak has already won the backing of Labour leader Keir Starmer, who pledged his support on Friday for any eventual deal, dampening the prospect of a future rebellion back in London from opposition MPs. 

“I say to the prime minister, if there is a deal to do in coming weeks – do it,” Starmer said in a speech at Queen’s University Belfast on Friday. “Whatever political cover you need, whatever mechanisms in Westminster you require, if it delivers for our national interest and the people of Northern Ireland - we will support you.”

-With assistance from Alex Wickham and Emily Ashton.