Brexit trade war ‘last thing Britain needs’, Ireland warns Liz Truss over protocol stance

A trade war with the EU over the Northern Ireland Protocol is the “last thing” Britain needs during the cost of living crisis, a senior Irish government minister has warned Liz Truss.

Ireland’s foreign minister Simon Coveney urged Ms Truss – named the new Tory leader and next prime minister on Monday – urged her to consider the consequences of her plan to override the protocol.

Mr Coveney said the UK and EU could still achieve a “sensible compromise” if the incoming PM softens her approach on the contentious post-Brexit trading arrangements.

Ms Truss has angered the EU by tabling legislation that would unilaterally scrap the arrangements that have created checks on goods moving from GB to NI.

Referencing the prospect of retaliatory action by the EU, Mr Coveney told RTE: “I think the last thing Britain wants and needs, and certainly Ireland wants and needs – and it’s the same across the EU – is a trade war between the EU and the UK.”

Mr Coveney added: “That can be avoided. We all know that. There is a deal to be done here through sensible politics and pragmatism, we know what it looks like, in my view.”

The EU Commission has insisted such that Ms Truss’ legislation move would breach international law. There has also been speculation that she may move to suspend the protocol within days by triggering Article 16.

However, Mr Coveney said he did not think that Ms Truss would trigger Article 16, and said he still hoped her premiership could herald a “change in direction” for UK-Irish relations.

The Irish foreign minister said: “A lot of the key decision makers are trying to reach out and give a signal to Liz Truss that if she decides to change course to a more positive one in terms of trying to find a sensible compromise with the EU, that we can find a way forward on this issue.”

Mr Coveney described Ms Truss as a “talented, very energetic politician”. He added: “We will work with her and her team, but I hope we can change the direction of travel for British-Irish relations that we’ve seen over the last couple of years.”

European Commission vice-president Maros Sefcovic – leading the Brussels side in post-Brexit talks – responded to Ms Truss’ victory by saying: “I stand ready to work intensively and constructively with my new UK interlocutor to foster such a partnership, in full respect of our agreements.”

DUP leader Sir Jeffrey Donaldson, staunchly opposed to the protocol, said his party still needed to see “decisive action” on the override bill before there could be any restoration of power-sharing at Stormont.

Sir Jeffrey said he had already written to Ms Truss setting out what his party believed her priorities should be. “Chief among those is taking forward the bill which will provide a basis for a solution to deal with the protocol.”

But Sinn Fein’s Stormont leader Michelle O’Neill said it was time to stop “pandering to the DUP” as she called for an urgent meeting with the incoming PM. “Liz Truss has an opportunity to come in now and stop pandering to the DUP ... which is damaging to our ability to help people through the cost of living crisis.”

Naomi Smith, chief executive of Best for Britain, campaigning for the closest possible ties to the EU, said all MPs and peers “must unite to oppose the bill”, adding: “The first act of Truss’ leadership cannot be a flagrant breach of international agreements.

Officials close to Truss have reportedly consulted legal and trade experts on the option of triggering Article 16 action against the EU over the protocol this month.

Triggering Article 16 immediately would allow the UK to unilaterally suspend all or parts of the protocol before a 15 September deadline of legal action by the EU.