Written statement: Schedule 6B Northern Ireland Act 1998: Windsor Framework decisions - Nov 4

Minister for Intergovernmental Relations and European Relations (Hamish Falconer): On 10 November, I will be meeting with the European Commissioner for Trade and Economic Security, Maro efovi for this Government's third meeting of the Withdrawal Agreement Joint Committee. As part of this important meeting, the UK and the EU will take decisions to support our commitment to the Windsor Framework.

This Joint Committee marks an important milestone in the lead up to the UK/EU Summit on 20 November in Brussels, where we aim to strike important deals that will boost our growth in every postcode, cut red tape and provide more opportunities to young people. On the table are deals covering agri-food and drink products, emissions trading, a youth experience scheme and deeper cooperation on illegal immigration. The agreements we hope to strike at the summit will have further specific benefits for Northern Ireland - removing a wide-ranging set of SPS and agri-food requirements for goods moving from Great Britain to Northern Ireland. The decisions we make at the Withdrawal Agreement Joint Committee will be taken in line with the Government's wider objectives.

At the Joint Committee, we will be signing a Joint Declaration with the EU. The effect of this will be to ensure that not at risk parcels, i.e. those sent to consumers in Northern Ireland moving under the Windsor Framework facilitation schemes, will not be impacted by the recently introduced handling fee' in the EU ensuring they pay no fees or charges. These arrangements are the result of close UK/EU cooperation to protect Northern Ireland's place in the UK internal market while supporting its privileged dual market access to the EU.

The Government will also agree specifically to decisions that will add two acts to the Windsor Framework. This Government is committed to tackling barriers to trade for businesses across the UK. Northern Ireland has a special trading relationship with the EU under the Windsor Framework and it is therefore only right that the Government reviews all elements of Northern Ireland's regulatory arrangements to ensure it can make the most of its unique dual market-access.

In accordance with paragraph 18(3) of Schedule 6B to the Northern Ireland Act 1998, I am setting out in this statement why I am of the opinion that the conditions are met for these particular measures to be agreed on the basis that neither of those acts would create a new regulatory border between Great Britain and Northern Ireland. The condition in paragraph 18(2)(b) of that Schedule is therefore met.

Forced Labour Protections Regulation (EU) 2024/3015

This regulation will apply in Northern Ireland in order to preserve Northern Ireland's unique and vital dual market access to the EU and the rest of the UK internal market.

The decision to add the EU Forced Labour Regulation to the Windsor Framework is made in tandem with the Government's decision to further eliminate human rights abuses and forced labour from UK-wide supply chains. This has been outlined in the Government's Written Ministerial Statement regarding its approach to Responsible Business Conduct. These measures will introduce a mandatory due diligence regime across the UK for services, and in Great Britain for goods, with the aim that this takes effect alongside the application of the EU rules in December 2027.

This will include a targeted power to withdraw goods from the market in Great Britain where they are made with forced labour and a business has failed to meet the required standard of due diligence. As these measures aim to achieve the same outcome in practice as the EU Forced Labour Regulation in Northern Ireland, supply chain risks should be intercepted and resolved in Great Britain before goods move to Northern Ireland.

This regulation's application will not create a new regulatory border between Great Britain and Northern Ireland. Available trade data indicates that annual Northern Ireland imports involving potential forced labour risks represent a minimal proportion of overall trade. Furthermore, the EU Forced Labour Regulation relies on intelligence-led investigations rather than routine border checks. Any practical effect is expected to be minimal. As such, this regulation will have no material effect on the flow of goods within the UK internal market, preserving Northern Ireland's unique and vital dual market access to the EU and the rest of the UK Internal Market.

Artificial Intelligence Act Regulation (EU) 2024/1689

This regulation will apply in a limited and targeted way in Northern Ireland, which is necessary to maintain an open border on the island of Ireland. Full application of the AI Act in Northern Ireland would not have been in line with the Windsor Framework or acceptable to the Government given Northern Ireland's integral role in the UK's AI strategy - demonstrated by the £7.5 million investment for Queen's University CSIT Cyber AI Hub announced last week at the Budget.

Following lengthy and constructive discussions with the EU, the AI Act as applied in Northern Ireland will apply only to the placing on the market of physical products with closely integrated AI systems. This is in contrast to the application in the EU, which also includes regulation of wider AI systems and standalone software incorporating AI, such as web-accessed applications and general purpose models.

The AI Act regulates AI systems based on the level of risk. Some systems are prohibited, such as those intended for social scoring, emotional manipulation or non-consensual nudification. Other systems are high risk' - for example because malfunctioning of AI could cause risks to human safety - and must meet certain requirements, such as data governance, technical documentation and risk and quality management systems. Limited risk' systems engaging directly with people or generating synthetic outputs face more light-touch requirements. Some AI systems do not fall in any of these categories.

This regulation will not create a new regulatory border. Its limited application means that Northern Ireland businesses that adopt or develop AI software, applications and online tools, will generally not be within scope of the AI Act, except when those AI systems are closely integrated in physical products. The regulation will mainly apply to physical products in scope of the Windsor Framework, that already adhere to EU law. This provides Northern Ireland manufacturers certainty on their unique dual market access to the EU market and the rest of the UK market. Furthermore, our assessment is that products subject to prohibitions or high-risk requirements are currently relatively rare, and that in any case, businesses supplying Northern Ireland in many affected sectors are typically EU-facing meaning they will comply with EU law requirements.

The Government remains fully committed to ensuring that the UK maintains its position as a world leader in AI and to supporting innovation, while also ensuring that a proportionate regulatory regime ensures AI-enabled devices are safe, with risks being addressed by existing expert regulators and at a sectoral level. The Government has been clear in our ambition to support innovation and growth across the whole of the United Kingdom.

Next steps

The Government will shortly submit Explanatory Memoranda to Parliament pertaining to each of the two decisions that we will make. These will set out in further detail the Government's view on any impacts that the above mentioned regulations would have on Northern Ireland, as well as additional evidence I considered when reaching my conclusion that none of them would lead to a new regulatory border.

We are steadfastly committed to protecting the UK internal market and Northern Ireland's place within it, as well as promoting growth in Northern Ireland through its unique dual market access. These objectives will be realised not just through the decisions made at theJoint Committee, but through the agreements that we aim to secure at the UK/EU Summit later this month.

I can confirm that the Secretary of State for Northern Ireland is writing to the Speaker of the Assembly to update him on these next steps personally. I will place a copy of the Secretary of State's letter to the Assembly Speaker in the Library of the House for future reference.