Brussels and UK near their first deal over NI Protocol

BRUSSELS has rowed back from threats to launch a retaliatory strike against Britain over Article 16 as the UK and EU near their first deal to break the deadlock in talks over the Northern Ireland Protocol.

European Commission officials signalled a possible compromise and said they are closing in on an agreement to protect medicine supplies to the province in a private briefing with senior EU diplomats.

With hopes rising of a breakthrough as soon as tomorrow, Lord Frost has signalled a new Brexit deal for Northern Ireland could be agreed before Christmas.

Mr Sefcovic, Commission vice president, resisted calls from hardline member states to draw up a list of potential retaliatory measures that could be triggered if Britain opts to use Article 16.

He insisted the bloc should focus on securing a deal, using medicines as a test to whether a wider agreement for Northern Ireland can be reached.

In private, Mr Sefcovic has called on member states to dial down their threats of a trade war citing a new positive dynamic in the talks between EU and UK officials.

Lord Frost has also urged the EU to “stand back” from the threat of potential sanctions against Britain while the talks are ongoing.

“There are no options on the table,” an EU diplomat said, after the Commission’s briefing. “As long as the cooperative spirit endures, this process should be given the chance to sort out the most pressing issues.”

The British Government argues that the current regime is having an adverse impact on trade flows between Northern Ireland and the rest of the UK and is calling for the Protocol to be completely overhauled.

Lord Frost said a negotiated solution is favoured by the Government, with Article 16 there as a potential fallback to protect trade flows between the province and Great Britain.

“I think it’s everyone’s preference, it’s certainly our preference to try to resolve it without using Article 16, but if we can’t resolve it in the negotiations, Article 16 is a perfectly legitimate option to solve these problems. That’s why it has to be on the table,” he added.