Britain and the European Union (E.U.) have reached a tentative Brexit deal on October 17. Boris Johnson, Britain's Prime Minister, tweeted, "This is a deal which allows us to get Brexit done and leave the E.U. in two weeks' time". The agreement must first be formally approved by the bloc and ratified by the European Parliament.
Right after the news broke out, the pound hit a five-month high against the U.S. dollar. However, not everything is going as smoothly as would have been liked. Almost immediately; however, the Northern Irish government spoke out and said that it would not back the tentative Brexit deal because of how it handles the issues surrounding the Irish border.
Much of Boris Johnson's deal remains the same as Theresa May's, his predecessor in regard to the transition timing, rights of E.U. nationals, and "divorce bill" payment for leaving the E.U. However, it differs in how it handles the border issue between Northern Ireland and the Republic of Ireland. For decades, Northern Ireland was in conflict over whether to remain as part of Britain, a move supported by the Unionists, or belong to the republic of Ireland, a move supported by the Nationalists. The 1998 truce that ended the conflict between the two sides resulted in a soft border between them and both people and goods have been able to cross from both sides with ease. However, since Britain is trying to leave the E.U. and Northern Ireland is part of the United Kingdom, a border debate has emerged. The issue is whether or not goods from Northern Ireland destined for the E.U. will be subject to tariffs which would effectively create a customs border in the Irish Sea which the British government has long said that it would not allow and which the Northern Irish Democratic Unionist Party has strongly opposed.
Boris Johnson's current deal says that the entire United Kingdom will leave the E.U. custom union and a hard (legal) border between Northern Ireland and the Republic of Ireland will be implemented. The E.U. has compromised with Britain by allowing Northern Ireland to be part of the E.U.'s single market rules despite the fact that it will officially be part of the U.K.'s customs territory. Under this compromise, U.K. customs authorities will check goods at British ports that are destined for Northern Ireland. They will be allowed to pass without tariffs if Northern Ireland is their final destination and they are not at a risk of entering the E.U. market, otherwise they will be subject to tariffs. A Joint Committee will be set up to define the rules and criteria for basing such decisions. Another difference between May's and Johnson's deal proposal is that Johnson's gives Northern Ireland voting rights in the decision.
There is incredible political pressure right now on reaching a Brexit deal. The U.K. parliament planned to submit a request to further Brexit delay past the current October 31 deadline. However, Boris Johnson sent a letter to European council president Donald Tusk stating that he 'remain[s] confident that [they] will complete the process by 31 October" and that "a further extension would damage the interests of the U.K. and our E.U. partners". If the deal is voted down in the U.K. parliament by the time the deadline comes around then Johnson would have to seek another extension to negotiations. However, if the deal is approved by both houses of parliament then it goes back to the European Parliament which must ratify the test. However, this means that the U.K. must move fast in the meantime in order to reach an internal agreement.