FXstreet

There is the “backstop”, a form of assurance that the Republic of Ireland seeks in that the border with Northern Ireland (part of the UK) is kept completely open for the free passage of trade, people, and services.



Dublin insists on this, even if there is a hard or “No-Deal” Brexit. It is not too difficult to see why the Irish feel this way as the UK accounts for 16% of Irish exports and 39% of their imports. Any fetter to the freedom of trade would prove difficult for both sides.

Given the benefits both Ireland and the UK derive from the open border one wonders why it has become such a stumbling point in the extremely drawn out negotiations?

The EU and UK were on the same page as the first phase of Brexit negotiations were concluded in December 2017. Their common view was that if a settlement could not be agreed then there would be a system of regulatory alignment between both Ireland and Northern Ireland.

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