The Government has confirmed it will withdraw controversial measures which could see the Brexit divorce deal torn up.
The move follows progress in talks led by Michael Gove and Maros Sefcovic on issues including the Northern Ireland protocol.
In a joint statement on Tuesday, the UK and EU said that “an agreement in principle” had been reached on all issues.
In view of these “mutually-agreed solutions”, the UK Government will withdraw clauses 44, 45 and 47 of the UK Internal Market Bill – which could have overridden the Withdrawal Agreement – and it will not introduce any similar provisions in the Taxation Bill.
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The joint statement setting out progress in the talks led by Michael Gove and Maros Sefcovic said: “Following intensive and constructive work over the past weeks by the EU and the UK, the two co-chairs can now announce their agreement in principle on all issues, in particular with regard to the Protocol on Ireland and Northern Ireland.”
The agreement covers issues including border checks on animal and plant products, the supply of medicines and deliveries of chilled meats and other food products to supermarkets.
There was also “clarification” on the application of rules on state subsidies.
Irish foreign affairs minister Simon Coveney said it was positive news that agreement in principle.
He said: “Of particular significance is the commitment by the UK to withdraw clauses 44, 45 and 47 of the Internal Market Bill, bringing it back into line with its obligations under the Withdrawal Agreement.
“This positive development comes after significant and productive engagement between the EU and the UK on implementation of the protocol, as provided for under the Withdrawal Agreement.
“I look forward to an early meeting of the EU-UK Joint Committee, chaired by commission vice president Maros Sefcovic and Michael Gove, to formalise the agreements reached.
“I hope this may also provide some of the positive momentum necessary to instil confidence and trust and allow progress in the wider context of the future relationship negotiations.”