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The European Union and the United Kingdom have agreed on a “trusted trade scheme” that would allow 98% of goods flowing between Great Britain and Northern Ireland to be exempt from tariffs, RTE Europe Editor Tonny Connelly reported.

“The other 2% would potentially avail of rebates from any tariffs,” Connelly further tweeted out on Wednesday. “Tariffs would mostly only apply if no free trade agreement is concluded between the EU and the UK.”

Market reaction

The British pound preserves its strength against its rivals after this headline. As of writing, the GBP/USD pair was up 0.77% on the day at 1.3455.