EU freezes legal steps against Britain after UK request for standstill

BRUSSELS, July 27 (Reuters) - The European Commission said
on Tuesday it would not move to the next step of its legal
action against Britain for unilaterally changing trading
arrangements for Northern Ireland, in response to Britain's
request for a "standstill".

The European Union in March began a so-called infringement
procedure against Britain for making changes to the Northern
Ireland trade arrangements that Brussels says breach the Brexit
divorce deal agreed with London last year.

The Northern Ireland protocol was part of the Brexit
settlement, backed by Prime Minister Boris Johnson, that finally
sealed Britain's divorce from the EU four years after voters
backed leaving in a referendum.

Brexit minister David Frost told parliament on July 21 that
London wanted to renegotiate the protocol and asked for a
standstill period that would extend current grace periods on
trade between Britain and Northern Ireland and freeze existing
EU legal action.

The Commission rejected the idea of a renegotiation of the
Brexit treaty, but on Tuesday agreed to freeze its legal action.

"With regards to the request for a standstill, the
Commission will carefully assess the new proposals made by the
UK, in accordance with the necessary consultation procedures,
both internally, and with the European Parliament," a Commission
spokeswoman said.

"In order to provide the necessary space to reflect on these
issues and find durable solutions to the implementation of the
Protocol, we have decided, at this stage, not to move to the
next stage of the infringement procedure, started in March," the
spokeswoman said.

Businesses in Northern Ireland say it is damaging trade, and
some pro-British groups have protested at what they say is a
weakening of ties with Britain, raising concerns about a return
to the violence which plagued the province for three decades.
(Reporting by Jan Strupczewski, Editing by William Maclean)