The Financial Times reported that EU is floating around a compromised Irish border backstop proposal to solve the ongoing Brexit negotiation impasse. The proposal was briefed to EU ambassadors earlier on Wednesday.
Under the proposal, EU would lay out the full terms of a “bare-bones” whole-UK customs union in the withdrawal agreement. It would apply a common external tariff on imports from outside the EU and rules of original. Meanwhile, under the backstop, Northern Ireland would remain in a deep customs union with the EU, applying all “customs code” and following EU’s regulations for goods and agri-food products. The stop-gap measures would remain in place until concluding the permanent UK-EU trade deal.
UK Prime Minister Theresa May is expected to tell the EU whether UK is open to the compromise next week. And that would be a key factor to determine if a November Brexit summit is to be held.
