The European Union and the United Kingdom reach a new agreement on post-Brexit trade rules in Northern Ireland

UK rations the sale of some vegetables 0:55

London (CNN) --

Britain and the European Union have reached an agreement on new trade rules in Northern Ireland in an attempt to resolve a contentious issue that has stoked post-Brexit tensions in Europe and on the island of Ireland.

The agreement could resolve the issue of imports and border controls in Northern Ireland, one of the most difficult and controversial aspects of the United Kingdom's separation from the European Union.

Speaking at a news conference in Windsor, just outside London, Prime Minister Rishi Sunak said the new deal, dubbed the "Windsor Framework," will allow for "smooth trade" within the UK, "protect Ireland's place from North" in the United Kingdom and will "safeguard" the sovereignty of Northern Ireland.

The president of the European Commission, Ursula von der Leyen, acknowledged the tense relations between the United Kingdom and the European Union since Brexit.

She said that for the two sides to "get the most out of our partnership", new solutions are needed.

She pointed to UK and EU cooperation on Ukraine, saying "we needed to listen to each other's concerns very carefully."

The agreement is intended to fix the problems created by the Northern Ireland Protocol, an addendum to Brexit agreed by Boris Johnson and the European Union in 2019. The protocol was created to avoid a hard border on the island of Ireland by keeping Northern Ireland aligned with the European Union, which means that the goods do not need to be controlled between Ireland and Northern Ireland, which belongs to the United Kingdom.

The two leaders highlighted three essential areas in which the new agreement will improve protocol.

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Sunak said the agreement will protect the free flow of trade between Britain and Northern Ireland by creating green and red lines for goods entering Northern Ireland.

Goods that are at risk of entering the Republic of Ireland will be redlined before entering Northern Ireland.

Goods that remain in Northern Ireland will move freely, Sunak said, meaning "if there is food available on supermarket shelves in Britain, there will be in Northern Ireland."

The Prime Minister said that through the agreement, the United Kingdom and the European Union have succeeded in protecting "Northern Ireland's place in the union" by allowing the British government to determine the VAT rates applicable in Northern Ireland, against the current system in which the EU determines the rates.

He said this would allow recent policies, such as reform to lower the price of beers in British pubs, to now apply in Northern Ireland.

Lastly, he also announced a new “Stormont brake” that would allow Northern Ireland's home rule to put an “emergency brake” on any new European Union law being imposed on the province.

UK Prime Minister Rishi Sunak (left) and European Commission head Ursula von der Leyen hold a joint press conference after their meeting at the Fairmont hotel in Windsor, west London, on 27 February 2023. (Photo by DAN KITWOOD/POOL/AFP via Getty Images)

"This will establish a clear process through which the democratically elected assembly can pull an emergency brake on changes to EU assets, rules that would have a significant and lasting effect on everyday life," Sunak said.

He added that if the Northern Ireland government stops a bill, the Westminster government will have a veto power on the bill.

Von der Leyen arrived in the UK on Monday for final talks with Sunak, ahead of a statement on the deal in the House of Commons.

Von der Leyen will also meet King Charles III for tea at Windsor Castle, Buckingham Palace has confirmed.

Negotiations intensified in recent weeks after months of deadlock over how to manage controls in Northern Ireland, which is part of the United Kingdom but shares a land border with the Republic of Ireland, a European Union member state.

Now that the deal is finalized, Sunak is facing political backlash from hardline eurosceptics in his Conservative Party.

Von der Leyen's meeting with the king has also sparked controversy.

"The King is delighted to meet any world leader visiting Britain and is advised by the Government to do so," the Palace said in announcing the meeting.

According to a royal source, the meeting would be an opportunity for Carlos to discuss issues like the war in Ukraine and climate change.

But it was criticized by some leading unionist figures.

"Can't believe No. 10 is asking HM the King to get involved in finalizing a controversial deal like this," former Northern Ireland Prime Minister Arlene Foster wrote in a tweet.

"It's crude and will go down very badly in Northern Ireland."

The Protocol on Northern Ireland, signed with Brussels by former Prime Minister Johnson, tried to recognize the delicate situation that Brexit created in Northern Ireland.

Normally, the existence of a border between a Member State of the European Union and a non-EU nation such as the United Kingdom would require infrastructure such as customs posts.

But during the period of sectarian fighting known as the Northern Irish Conflict or “The Troubles”, in English, security posts along the border between Northern Ireland and the Republic of Ireland became targets of paramilitary groups fighting for a united Ireland.

• Why is the border with Ireland a big problem for Brexit?

In theory, the Northern Ireland Protocol was intended to eliminate the need for border infrastructure.

It was agreed that Northern Ireland would remain within the regulatory purview of the EU and that goods entering Northern Ireland from Great Britain would be checked prior to arrival, which meant the imposition of a maritime border.

This angered the pro-British Northern Irish unionist community, who argued that they were being separated from the rest of the UK and closer to the Republic of Ireland.

Disputes over the agreements have, in part, been an obstacle to the restoration of the Northern Ireland Assembly, suspended since 2017. Power-sharing between unionists and republicans is a key part of the Good Friday Agreement, the peace agreement which marked the end of the conflict.

The disputes have also affected trade between Great Britain and Northern Ireland, to the point that the UK has not fully implemented the protocol.

-- Niamh Kennedy and Jessie Gretener contributed to this report.

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