Hillary Benn suggested the Government could suspend the Windsor Framework over the trade war row (Image: Parliament Live / White House)
A top minister has refused to rule out suspending part of the Brexit agreement with the EU if the bloc retaliates with reciprocal tariffs on the United States. The Windsor Framework agreed between Rishi Sunak and Ursula von der Leyen in 2023 means that in such an event, those tariffs would also be applied to Northern Ireland as the territory is legally part of the EU’s customs area.
This would mean that US goods entering Northern Ireland would be more expensive for Britons living there than in mainland Great Britain, and damage the cohesion of the United Kingdom’s economy. Updating parliament this afternoon, Northern Ireland Secretary Hilary Benn refused to rule out using Article 14 of the Windsor Framework to suspend its operation and avert such a scenario.
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His Tory opposite, Alex Burghart, said the Government must act to ensure businesses and consumers in Northern Ireland are not disadvantaged as a result of the potential EU-US trade war.
READ MORE: Trump tariffs threaten major Brexit row between UK and EU
EU retaliatory tariffs would be imposed on Northern Ireland (Image: Wire)
He asked: “Will the Secretary of State confirm to the House that in the event that we see a major diversion of trade, his government will be prepared to use Article 16 of the Windsor Framework, which allows the government to take decisions to ensure businesses in Northern Ireland are not damaged?”
Mr Benn refused to rule out using the mechanism, which could spark diplomatic hostilities between the UK and the EU.
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He told MPs: “Northern Ireland imports about ￡800 million of goods from the USA, which is about 2% of Northern Ireland’s total purchases, and therefore that impacts on this question.
“We’re going to have to take this a stage at a time. The Prime Minister has made it quite clear that he will do what is in the national interest to protect our businesses, our companies and our economic future.”
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However Mr Benn defended the wider Windsor Framework, which was opposed by leading Brexiteers at the time such as Boris Johnson, arguing that the treaty allows Northern Ireland firms to reclaim EU customs duty paid on goods that are imported to Northern Ireland but then do not move into the EU.
DUP MP Gavin Robinson has warned that Northern Irish businesses “must not become collateral damage” in any trade war between Brussels and Washington.
Last week former Brexit negotiator Lord Frost said the government must unilaterally enact Article 16 and disapply the framework to ensure the economy of Northern Ireland is not hit by the trade row.
He said: “If this comes to pass, then the Government should use Article 16 of the Protocol, on safeguards and trade distortion.”
He cited the relevant provision within the treaty: ”If the application of this Protocol leads to serious economic, societal or environmental difficulties that are liable to persist, or to diversion of trade, the Union or the United Kingdom may unilaterally take appropriate safeguard measures."
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The debate comes as the European Commission proposes counter-tariffs on the United States of 25% on a range of goods, including diamonds, eggs, dental floss, sausages and poultry.
EU trade ministers met in Luxembourg on Monday and approached agreement over the bloc’s response to President Trump’s tariffs, which were set at 20% on all goods for the European Union.
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It’s expected that the first round of EU countermeasures will be agreed tomorrow, and may include US bourbon whiskey.
An EU diplomat said: “We need to strike the right balance to protect the most exposed EU economies.
“We are united in our desire for a proportionate response, because retaliatory measures against US products will have a knock-on effect on our industries."