UK and EU eye deal over post-Brexit trade in N.Ireland

Britain and the European Union were on Monday poised to agree a crucial overhaul of trade rules in Northern Ireland, in a breakthrough aimed at resetting strained relations since Brexit.

Prime Minister Rishi Sunak and European Commission chief Ursula von der Leyen were set to hold "final talks" at lunchtime in the UK, in a bid to end more than a year of negotiations over the so-called Northern Ireland protocol.

Agreed in 2020 as part of Britain's EU divorce, the pact kept the province in the European single market and subject to different trade rules than the rest of the UK, angering pro-UK unionists there and eurosceptics in London.

The UK government had threatened a unilateral overhaul of the protocol unless the EU agreed to wholesale changes, souring diplomatic ties and risking a wider trade war, but that prospect now appears to be receding.

"I'm looking forward to turning a page and opening a new chapter with our partner and friend," von der Leyen said as she left Brussels for Britain.

The EU chief is also set to meet King Charles III in Winsdor, west of London, stoking controversy in the UK that Sunak was trying to project royal endorsement of the expected deal.

It is likely to face opposition from Brexiteers, including his potentially rebellious predecessor Boris Johnson, and lawmakers representing the pro-British unionist community in Northern Ireland.

Insisting the monarch's meeting with von der Leyen was decided by Buckingham Palace, Sunak's spokesman reiterated an agreement appeared imminent.

"We believe these are the final talks and significant progress has been made over a number of weeks and months, but it is important to have these leader-level discussions for the deal to be finally agreed," he told reporters.

Sunak and von der Leyen are due to hold a short joint press conference in Windsor if the agreement is finalised, before the UK leader -- who took power in October -- makes a statement to parliament.

An agreement would end more than a year of talks between London and Brussels, under the direction of three different British prime ministers and the cloud of the war in Ukraine.

It is seen as long overdue to help stabilise Northern Ireland.

The protocol has faced staunch opposition from the Democratic Unionist Party (DUP), the largest pro-UK party there, who argue it threatens the province's place within the UK.

The DUP collapsed devolved power-sharing a year ago, and vowed to keep blocking the functioning of the assembly until the rules are scrapped.

It is unclear if the deal -- which is expected to end most checks on Northern Ireland-bound goods and limit the role of European institutions there -- will satisfy the party.

That in turn could determine how Conservative eurosceptics in London react.

Former cabinet minister and Johnson loyalist Jacob Rees-Mogg said Monday that the DUP's verdict would be "very influential" among Tory lawmakers.

"I'm not sure he has achieved the objective of getting the DUP back into power-sharing, which is the fundamental point of it," he told broadcaster ITV.

Disagreements about the protocol have dogged relations between Britain and the EU since Brexit rules came into effect in 2021 and are seen as hindering broader post-Brexit cooperation.

The UK, which is grappling with the worst cost-of-living crisis in a generation and predicted to be the only G7 country to enter recession this year, is seen as eager to reset relations to boost trade.

The government in London is also under pressure to restore power-sharing in Belfast, particularly with the 25th anniversary of the 1998 Good Friday Agreement -- which ended three decades of conflict -- looming large.

Northern Ireland has been without a devolved government since February last year due to the DUP's walk-out.

The party had been due to share power with pro-Ireland Sinn Fein, which became the biggest party in the assembly after elections last May.

In the Northern Irish border city of Newry, some residents were eager for a breakthrough and the restoration of power-sharing.

"We need things to get going again, we need to get this sorted out." Vincent Ward, 53, told AFP.

Joe O'Hanlon, 63, added it was "about time" elected leaders "got their act together".

"It's time that people know what's ahead of them," he said.