SENIOR members of the hardline eurosceptic European Research Group have been drafted in by the British government to help develop an alternative to the Irish backstop.
ERG deputy leader Steve Baker, former Northern Ireland secretary Owen Paterson and MP Marcus Fysh will be part of the Alternative Arrangements Working Group, Downing Street said.
They will be joined by former education secretary Nicky Morgan and ex-cabinet office minister Damian Green in the group, which will meet for the first time today.
Mr Baker and Ms Morgan were involved talks last week between Tory MPs over the so-called Malthouse compromise, developed by Housing Minister Kit Malthouse.
The Malthouse compromise is seen as one of the main reasons the ERG moved to back an amendment last Tuesday tabled by Sir Graham Brady, which urged the government to look at backstop alternatives.
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The much-disputed backstop arrangement is aimed at guaranteeing no hard border in Ireland if no alternative plan is agreed between the UK and EU.
Ms Morgan has said the Malthouse compromise would see the backstop "recast" as "free trade agreement-lite" with a commitment there would be no hard border.
A planned 21-month transition period would also be extended by another year to December 2021, during which EU citizens' rights would continue and the UK would pay into the EU budget.
Mr Baker said the plan would replace the backstop and allow more time to secure a free trade agreement with the EU.
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The development came as car company Nissan yesterday scrapped plans to build the X-Trail 4x4 at its Sunderland plant.
In a letter to staff, senior Nissan boss Gianluca de Ficchy said the decision was made for "business reasons" affected by rules on diesel engines and reduced sales – but added that "uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future".
Meanwhile, Arlene Foster said dealing with the "toxicity" of the backstop would allow the EU and UK to move towards a Brexit deal.
She said that "whilst there are other issues with the withdrawal agreement, if this issue around the toxicity of backstop was dealt with then we would be able to move forward".
The DUP leader told the BBC she believed it was possible to find an "alternative" to the backstop "if there's a willingness" from the EU "but mainly the Republic of Ireland".
Taoiseach Leo Varadkar said the need for the backstop was proven by events at Westminster last week.
He told told RTÉ it has "demonstrated why we need a legal guarantee so a prime minister, or a government or a parliament of the day, can't abrogate it".
Sinn Féin president Mary Lou McDonald said the backstop was "the absolute bare minimum" required.
Ulster Farmers' Union president Ivor Ferguson said a no-deal Brexit would be an "absolute disaster" for farmers.
"When we are looking at this no-deal situation we are looking at the facts – the facts are if we are outside the EU we would face tariffs," he told the BBC.
"It would just be unsustainable and we could not handle a no-deal situation."
