Northern Irish businesses are urging the UK government to reconsider its unilateral plans that could potentially harm post-Brexit trade. Instead, they are advocating for negotiations with the European Union (EU) to address the disruptions caused by Brexit.
The UK government has put forward legislation that would disregard certain post-Brexit trade regulations for Northern Ireland if negotiations with the EU fail to remove specific checks on goods entering the region. The proposed plan includes the implementation of two lanes for goods: a green lane for products staying within the UK and a red lane for goods destined for the EU, which would require additional checks. Additionally, the proposal allows businesses to choose between adhering to UK or EU standards through a new dual regulatory regime.
While some aspects of the proposals may be appealing to businesses that directly interact with consumers, Stuart Anderson, Head of Public Affairs at the Northern Ireland Chamber of Commerce, emphasizes the need for a cautious approach to safeguard the gains made by exporters and the agri-food sub-sectors. Anderson raises concerns about shifting the risk onto Northern Irish businesses and stresses the importance of a negotiated outcome between the EU and the UK. This sentiment is shared by business groups representing retailers, wholesalers, and other sectors impacted by the checks imposed under the Northern Ireland protocol.
However, the manufacturing, dairy, and meat industries warn that the UK government’s unilateral actions could have detrimental effects on Northern Irish businesses. Many businesses in these sectors have benefited from continued access to the EU’s single market, a privilege granted to Northern Ireland but not to England, Scotland, or Wales. Stephen Kelly from trade body Manufacturing NI doubts the efficacy of the proposed green and red channels, stating that they “simply will not work.” He also raises concerns about the added burdens of the dual regulatory regime on businesses that trade not only with the rest of the UK but also across the open border with Ireland and the wider EU.
Campbell Tweed of the National Sheep Association criticizes the UK government’s lack of understanding of border areas and its insufficient comprehension of trade issues. He believes that operating under two different standards within the same location would create significant difficulties.
In conclusion, Northern Irish businesses emphasize the need for negotiations with the EU to address post-Brexit trade disruptions rather than pursuing potentially detrimental unilateral plans. While there may be advantages for certain sectors within the proposals, it is essential to balance the interests of all businesses and avoid placing excessive risk on Northern Irish businesses. Concerns have been raised by the manufacturing, dairy, and meat industries regarding the effectiveness of the proposed trade lanes and the dual regulatory regime, highlighting the challenges faced by businesses operating across borders. The EU and the UK must collaborate to achieve a negotiated outcome that protects the interests of all parties involved.
Useful links:
1. https://www.bbc.com/news/uk-politics-57298859
2. https://www.ft.com/content/937d3184-3503-4bd2-bdb9-73d9e8d9029e
