UK offers concession in trade talks with the EU

The United Kingdom is understood to have changed its position on governance issues in negotiations with the European Union on post-Brexit trade relations, in what appears to signal progress toward resolving disagreement between the two sides.

A British official told journalists in Brussels on Friday that the UK will no longer seek the removal of the European Court of Justice from its role in enforcing the so-called Northern Ireland Protocol, the Irish Times first reported.

The step down was described by the Financial Times as an olive branch that could help to help secure a deal on securing the smooth flow of goods between Britain and Northern Ireland.

"If the negotiations fail it won't be because the UK is insisting on taking the ECJ out of the protocol," the FT quoted the official as saying.

Relations between the UK and the EU have been strained since the UK left the bloc, with disputes particularly focused on fishing licenses and trade rules in Northern Ireland.

In a further sign of easing tensions, the UK has agreed to issue 18 licenses for boats from the EU to fish in UK waters and five more for fishing in the around the island of Jersey in the English Channel.

The breakthrough came a day after a Brussels-imposed deadline for resolving a row over fishing licenses passed, which could have triggered EU legal action, reported Bloomberg.

"Today's decision is an important step in a long process seeking full implementation of the Trade and Cooperation Agreement," the European Commission said in a statement, referring to the post-Brexit deal that has been strained by the fishing rights spat.

A statement from the UK government said the deal followed "several weeks of intensive technical discussions on licensing".

The Commission statement added: "Further technical consultations will continue with the aim to have seven additional replacement vessels licensed by the end of Monday."

The UK voted to leave the EU in 2016 and Brexit formally happened in January 2020. Then there was a transition period until Dec 31, 2020, when the Trade and Cooperation Agreement, also known as the post-Brexit deal, came into force.

In order to protect the Good Friday Agreement and prevent a return to conflict, both sides seek to avoid a hard border on the island of Ireland. To address this, the Northern Ireland Protocol was agreed that effectively keeps Northern Ireland in the EU customs union and the single market for goods.

Because the UK has left the EU, customs checks must still take place on goods coming into Northern Ireland from England, Scotland and Wales.

Politicians and businesses in Northern Ireland say the protocol presents significant problems. The UK government has even threatened to trigger Article 16 of the protocol, which would partly suspend it, in a move that commentators say could lead to a trade war.