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The UK and the EU are set to thrash out their differences over the implementation of the Northern Ireland Protocol.

Brexit minister Lord Frost and Maros Sefcovic, the European Commission vice president, will meet on Wednesday after the latter suggested the EU is finding it hard to trust the UK following its departure from the bloc

Mr Sefcovic said there have been “numerous and fundamental gaps in the UK’s implementation” of the two sides’ trade deal and that the EU will act “firmly” if the UK does not agree on deadlines for complying with its obligations.

In turn, Environment Secretary George Eustice claimed the Northern Ireland Protocol, in the way the EU wants to implement it, would make it impossible for UK producers to sell British sausages to Northern Ireland.

Sky News has taken a closer look at the issues.

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Many suppliers in Britain ‘have chosen to stop supplying to Northern Ireland’

What is the Northern Ireland Protocol?

It is a crucial part of the Internal Markets Bill, which was drawn up to ensure trade between all four UK nations remains barrier-free after the Brexit transition period ended on 31 December 2020.

More on Brexit

The Northern Ireland Protocol was put in place to avoid the introduction of a hard border between Ireland and Northern Ireland in the event of a no-deal Brexit.

It states that Northern Ireland will remain part of the UK’s customs territory – so if the UK signs a free trade deal with another country, Northern Irish goods would be included.

However, Northern Ireland will have to stick to some EU rules to allow goods to move freely into the Republic.

Goods moving from the rest of the UK to Northern Ireland will not be subject to a tariff unless they are “at risk” of being moved into the EU afterwards.

Mr Eustice said in 2020 there would need to be “some checks on some goods” and “some customs processes but not customs checks” at the border with the Republic.

Goods coming from Northern Ireland to Great Britain can have “unfettered” access, the Internal Market Bill says. This means goods sold in Northern Ireland will be accepted everywhere else in the UK, but the reverse may not be true.

A sign on a lamppost that reads 'Ulster is British - no internal UK Border - Unionists against NI Protocol', opposite the Department of Agriculture, Environment and Rural Affairs (DAERA) Redlands site. It will be used to inspect animal products travelling from Great Britain into Northern Ireland after the post-Brexit transition period at the end of the year.
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The Northern Ireland Protocol was meant to prevent a physical border on the island of Ireland

What has happened since the Brexit transition period ended?

Products from Great Britain entering Northern Ireland have had to undergo EU import procedures at the ports.

An Irish Sea border has effectively been imposed in an effort to prevent a physical border between Ireland and Northern Ireland.

This has resulted in delays and sometimes sparse supermarket shelves.

A sign is seen with a message against the Brexit border checks in relation to the Northern Ireland protocol at the harbour in Larne, Northern Ireland February 12, 2021. REUTERS/Clodagh Kilcoyne
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Checks imposed at the port in Larne, Northern Ireland, have not been popular

What are the UK and EU disagreeing over?

Under the protocol, a ban will come into force if the UK and EU cannot agree on new regulatory standards to cover the sale of some products after a “grace period” allowed under the agreement.

In March, the UK unilaterally extended the grace period for supermarket goods and parcels for another six months, after it was due to finish at the end of that month.

The EU launched legal action against the UK for extending that grace period.

Graffiti on the A2 outside Carrickfergus in Belfast. The DUP has rejected claims it is whipping up tensions over Irish Sea trade in an effort to get Brexit's contentious Northern Ireland Protocol ditched. Physical inspections on goods entering Northern Ireland from Great Britain, which are required under the protocol, have been suspended amid threats and intimidation of staff. Picture date: Wednesday February 3, 2021.
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The UK promised there would be no sea border

It is understood British ministers are now considering a unilateral extension for chilled meats, including sausages and mince, which is due to end on 30 June.

After the grace period, chilled meats produced in Great Britain will not be allowed to be sold in Northern Ireland as they are not from the EU, which has strict restrictions on food products.

Mr Sefcovic said retaliation by the EU would be so extreme it would ensure the UK “abides by its international law obligations”.

Boris Johnson‘s spokesman said there was “no case whatsoever” for blocking the sale of chilled meats.

Sausages on sale at the butchers at Polhill Farm Shop near Sevenoaks 20/3/2020
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British sausages have been the focus of the latest disagreement

Lord Frost claims the EU has been “inflexible” over the protocol, something the EU rejects.

The EU has said the UK could align with its animal health and food safety rules to remove the need for 80% of the current Irish Sea customs checks.

But the UK has rejected this, as it says it will tie Britain’s hands in trade negotiations with other countries.

The UK has also accused the EU of failing to engage with its own proposals, especially with the issues people in Northern Ireland are facing.

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Starmer avoided political heat at home during Brazil climate conference – but he returns to a prisons crisis

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Starmer avoided political heat at home during Brazil climate conference - but he returns to a prisons crisis

Sir Keir Starmer’s been on the other side of the world for most of the week – at the COP30 climate summit in Brazil, his 40th foreign trip in 16 months.

Back home, his government’s credibility has continued its painful unravelling.

Five days on from David Lammy’s disastrous stand-in performance at PMQS, the justice secretary’s ministerial colleagues are still struggling to explain why he repeatedly failed to answer questions on whether another migrant criminal had been released from prison by mistake.

Prime Minister Sir Keir Starmer at the Remembrance Sunday service at the Cenotaph in London. Pic: PA
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Prime Minister Sir Keir Starmer at the Remembrance Sunday service at the Cenotaph in London. Pic: PA

Yes, Conservative MP James Cartlidge got the question wrong, as Brahim Kaddour-Cherif was an illegal migrant, not an asylum seeker.

But Mr Cartlidge argued that because the deputy prime minister failed to divulge the information he did have, he failed to act with full transparency and should be investigated by the PM’s ethics advisor for a possible breach of the ministerial code.

Culture Secretary Lisa Nandy has been defending Mr Lammy’s response.

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Lammy not sharing facts is ‘shocking’

She told Sunday Morning with Trevor Phillips she doesn’t accept that he was being evasive, insisting Mr Lammy had been carefully weighing his words to ensure that “when we do speak about matters of such significance to the public… we do so with care and make sure the full facts are presented”.

At that time, rather extraordinarily, we’re told the justice secretary did not have the full facts of the case, even though the Metropolitan Police had been informed the day before (six days after Kaddour-Cherif was accidentally freed).

How Sky correspondent found escaped prisoner

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In full: Moment sex offender arrested

The combination of wrongly-freed prisoners and illegal migrants is a conjunction of two of the most toxic issues in British politics – the overflowing prison system and the dysfunctional asylum system.

Both are vast, chaotic problems the government is struggling to get a grip on, as the Conservatives also found, to their cost.

But ministers’ ongoing failure to bring both issues under control has only been highlighted by Mr Lammy’s sloppy handling of the situation.

Football regulator donations row

Ms Nandy has herself been at the heart of another government controversy this week – over the appointment of the new football regulator, David Kogan.

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‘I didn’t want to mislead MPs on prisoner release’

An independent investigation found she “unknowingly” breached the code on public appointments by failing to declare that Mr Kogan had previously donated £2,900 to her Labour leadership campaign – and also criticised her department for not highlighting his status as a Labour donor who had previously given £33,410 to the party.

The culture secretary has apologised and explained she had been unaware of the donations.

She also pointed out that Mr Kogan was a candidate originally put forward by the Conservatives. But again, it’s messy.

It’s yet another story which chips away at the government’s promises to clear up politics and act with full transparency and accountability.

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Political fallout analysed

Budget blues?

The ultimate breach of trust looks set to come with the budget on 26 November, however.

In an extraordinary early morning speech this week, Chancellor Rachel Reeves signalled that she’s likely to raise taxes in two and a half weeks – and thus breach the core promise of the Labour Party manifesto.

The rationale for her dire warnings on Tuesday was to start explaining why she will probably have to do so – getting in her excuses early about the languishing state of the economy as a result of Brexit, Donald Trump’s tariffs and her inheritance from the Conservatives.

The Tories claim Ms Reeves could sort out the finances by cutting welfare spending – something ministers dramatically failed to do when their efforts at reform were scuttled by angry backbenchers.

Read more:
Govt ‘gripping’ prisons crisis
Denmark migration model backed
Prisons ‘close to breaking point’

Governments breach their manifesto commitments all the time.

But if the chancellor goes ahead and puts up income tax, as expected (even if that’s offset, for some, by a corresponding cut to national insurance), it will be a shock – and the first such increase in 50 years.

The new deputy leader of the party, Lucy Powell, pointedly warned the government this week about the risks of breaching trust in politics by breaking manifesto promises.

Lisa Nandy didn’t shoot her comments down when Sir Trevor asked for her response, arguing instead that while “we take our promises very, very seriously”, they [Labour] “were also elected on a promise to change this country”, with a particular focus on fixing the NHS.

The impossibility of doing both – protecting taxes while also increasing government spending in such a challenging economic climate – highlights the folly of making such restrictive promises.

But voters are not in a forgiving mood.

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Politics

Trump announces $2,000 tariff ‘dividend,’ here is how it will affect crypto

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Trump announces ,000 tariff 'dividend,' here is how it will affect crypto

United States President Donald Trump announced on Sunday that most Americans will receive a $2,000 “dividend” from the tariff revenue and criticized the opposition to his sweeping tariff policies.

“A dividend of at least $2000 a person, not including high-income people, will be paid to everyone,” Trump said on Truth Social.

The US Supreme Court is currently hearing arguments about the legality of the tariffs, with the overwhelming majority of prediction market traders betting against a court approval.

US Government, United States, Donald Trump
Source: Donald Trump

Kalshi traders place the odds of the Supreme Court approving the policy at just 23%, while Polymarket traders have the odds at 21%. Trump asked:

“The president of the United States is allowed, and fully approved by Congress, to stop all trade with a foreign country, which is far more onerous than a tariff, and license a foreign country, but is not allowed to put a simple tariff on a foreign country, even for purposes of national security?”

Investors and market analysts celebrated the announcement as economic stimulus that will boost cryptocurrency and other asset prices as portions of the stimulus flow into the markets, but also warned of the long-term negative effects of the proposed dividend.

Related: Bitcoin faces ‘insane’ sell wall above $105K as stocks eye tariff ruling

The proposed economic stimulus will boost asset markets, but at a steep cost

Investment analysts at The Kobeissi Letter forecast that about 85% of US adults should receive the $2,000 stimulus checks, based on distribution data from the economic stimulus checks during the COVID era.

While a portion of the stimulus will flow into markets and raise asset prices, Kobeissi Letter warned that the ultimate long-term effect of any economic stimulus will be fiat currency inflation and the loss of purchasing power.

US Government, United States, Donald Trump
The proposed economic stimulus checks will add to the national debt and result in higher inflation over time. Source: The Kobeissi Letter

“If you don’t put the $2,000 in assets, it is going to be inflated away or just service some interest on debt and sent to banks,” Bitcoin analyst, author, and advocate Simon Dixon said.

“Stocks and Bitcoin only know to go higher in response to stimulus,” investor and market analyst Anthony Pompliano said in response to Trump’s announcement.

Magazine: China will intensify Bitcoin bull run, $1M by 2028: Bitcoin Man, X Hall of Flame