The European Commission has paused legal proceedings against the United Kingdom over the implementation of the Northern Ireland protocol in the hope that solutions can be found.
It comes after the UK government called for a “standstill period” in which the EU would not further legal action and the UK would also refrain from unilateral moves.
A European Commission spokesman said in a statement that “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”.
Last week the UK's Brexit minister, David Frost, told the House of Commons there should be a "significant change" in the protocol and that "we cannot go on as we are".
The commission said the pause in the legal action would be used to consider the UK’s proposals.
“We confirm our readiness to continue to engage with the United Kingdom, also on the suggestions made in the Command Paper, and to consider any proposals that respect the principles of the protocol,” the statement from the commission added.
The Irish Government has also said it will carefully consider the British proposals, which include suggestions that were raised and discussed during the negotiation process.
“We have received a constructive reply from the Commission in response to our request for a standstill on existing arrangements,” a British government spokeswoman said. “We look forward to engaging in talks with the EU in the weeks ahead to progress the proposals in our command paper.
“As we set out in the Command Paper last week, significant changes are needed to ensure the Pprotocol is sustainable for future”
Last week, Mr Frost suggested a tiered system in which goods produced for consumption in Northern Ireland only would not need to be inspected at Irish Sea crossing points, and that goods that were made to standards that equalled those of the EU should be able to circulate freely.
Other proposals included abolishing export certification, state aid rules and the oversight of the European Court of Justice, encompassing several steps that are seen as impossible for EU capitals to agree to.
Both Brussels and Dublin are seen to be keen to cool the heat on the issue of Northern Ireland and encourage negotiations to find solutions for any problems through the pathways laid out by the withdrawal agreement and trade deal wherever possible.
The commission warned that it would not renegotiate the protocol, which was negotiated and agreed by both sides as a way to allow Britain to leave the single market and customs union while avoiding the need for checks across the island of Ireland.
UK prime minister Boris Johnson originally praised the deal as a "reasonable, fair outcome" and a "very good deal" for both sides, but his government has since said it has been implemented in a stricter manner than foreseen.
“The EU has sought flexible, practical solutions to overcome the difficulties citizens in Northern Ireland are experiencing regarding the implementation of the protocol – as demonstrated in the package of measures announced by the commission on June 30th,” a commission spokeswoman said.
“While the EU will not renegotiate the protocol, we stand ready to address all the issues arising in the practical implementation of the protocol in a spirit of good faith and co-operation.”
It added that if was essential that “constructive discussions” continue in the coming weeks.