Sunak’s NEW Windsor Framework

By Vanya D

A brief overview:

The Prime Minister Rishi Sunak has signed a new deal with the European Union over post- Brexit trading agreements for Northern Ireland (NI) on the 27th February. This agreement between Rishi Sunak and Ursula von der Leyen, the European Commission president, comes after months of discussion over the previous controversial agreement for the region. The Windsor Framework is an improved deal, aiming to substantively ease how the protocol will work for businesses as well as individuals, by establishing a “sea border” instead of a “hard border”.

What is the Northern Ireland Protocol and why was it opposed?

The Northern Ireland Protocol is a protocol to the Brexit-withdrawal agreement that governed the customs, immigration and trade between Northern Ireland, the rest of the UK and the EU. It was ratified in January 2020 by Boris Johnson, alongside the withdrawal agreement. The protocol prevented a hard border between Ireland and Northern Ireland from being created and established free flow of goods throughout Ireland. However, it created barriers between NI and the rest of the UK. Furthermore, it kept NI in the EU market, thus subjecting them to certain rules of the EU like customs checks and trade controls.

This was met by strong opposition from unionist parties in NI, like the DUP. They argued that this agreement was effectively creating a border by generating trade barriers between NI and the rest of the UK, thus making them second-class citizens in comparison to those of England, Wales, and Scotland. Businesses claimed that checks on goods entering NI from GB were disrupting trade, creating additional paperwork, increasing prices, and bankrupting businesses. Legal experts said NI could be “symbolically separated” from the rest of Britain.

How does the Windsor Framework amend this Protocol?

Prime Minister Rishi Sunak moved from a confrontational approach of trying to rewrite the entire protocol to genuine resolution of amending the existing one. The new agreement contains 3 substantive changes on how the protocol will operate:

1. Checks on goods moving from Great Britain into Northern Ireland

Previously, all products moving across the Irish Sea would require the same regulations including customs declarations and certificates. Now, under the new arrangements, 2 lanes will be created - red and green.

Green lanes: To use the green lanes, businesses will have to register under the new United Kingdom Market Scheme (UKIMS) which will then face minimal paperwork and no routine physical checks.

Red lanes: Goods moving on to the Republic of Ireland and the rest of the EU will face the usual third country checks.

- It also adds that pets can be moved between GB and NI without an additional passport (good news!) and personal parcels can be sent without additional costs or paperwork (cheaper shipping!)

- This clause also means drugs approved for use by UK’s medicines regulators will be automatically available in NI.

2. Issue of NI VAT and state-aid status

Under the new deal, the rules on the structure of excise duties have been loosened thus bringing NI’s VAT status into conformity with GB’s and allowing a lower VAT rate than is compatible with EU law.

3. How the protocol is governed and who enforces it

It has been agreed that the Northern Ireland Protocol, like any other EU law, will remain under direct jurisdiction of the European Court of Justice (ECJ). This is good outcome for businesses as if their rights are infringed, they are guaranteed remedies by EU courts.

What has the response to the Windsor Framework been like?

The proposed agreement does not need parliamentary approval. However, the PM has promised that MPs in London will have an opportunity to vote on it. Labour leader, Sir Keir Starmer has indicated that Labour will vote in favour of the Windsor Framework as it is in ‘national interest’. Brexit hardliners are yet to respond to the news but are unlikely to incite a significant rebellion.

However, the DUP still insists that NI should not be subject to any EU involvement and is boycotting the devolved assembly in Stormont over the issue. The PM’s aides have said they hope the greater say over EU rules will be enough to win over the Unionists, but it is unlikely to have their backing for the deal immediately. While Sunak’s government doesn’t need DUP votes to pass the deal, their support is crucial in resuming power sharing in Northern Ireland. Despite DUP’s disagreement, Northern Irish businesses have reacted positively to the news, with an end to the uncertainty and challenge of trade. Northern Irish Minister Steve Baker has said the deal was a “triumph”.

Overall, the response to the new Windsor Framework has been positive as almost everybody agrees it is better than the status quo, which only fuelled political and economic instability. In its editorial comment, the Daily Telegraph said this was “arguably [Sunak’s] best day yet as prime minister” adding that “time will tell if he has pulled off a political triumph”. The Dublin- based Irish Times sees it as a “route to stability and progress” and adds that the very nature of Brexit means that no agreement will give everybody what they want.

In conclusion, this new agreement brings about legal certainty for businesses and investors, political stability in Northern Ireland and resolves the most practical problems to ordinary people caused by Brexit. This deal has bettered UK-EU relations which will unlock progress into many frozen issues with the EU. This includes the UK’s membership of the Horizon Project which would bolster security and foreign policy cooperation and could effectively deepen cooperation on other mutual interests like the energy crisis. The deal also portrays Sunak as a more credible character to the US Biden administration, who care deeply about peace in Northern Ireland. Thus, this deal should be supported by all parties when the time comes for MPs to vote on it.