Assuming the EU and UK does eventually conclude a trade deal, possibly by early November, it will help ensure that existing trade flows continue across these islands.
However, the UK is still outside the EU, so checks will be required on goods at borders, which will add cost and bureaucracy for traders.
The Irish protocol within the Brexit Withdrawal Agreement means that trade can flow unfettered across Ireland and into the EU. But there will be checks on goods coming from Britain to NI, while in the opposite direction, the UK government has now published draft legislation on what constitutes a “qualifying good”.
Initially, the definition has been left vague, and any EU good that is present in NI, or any good that is processed in NI, can move to Britain without any checks.
The issue with such a broad definition is that it potentially leaves NI as a backdoor route to Britain to avoid controls at the likes of Holyhead or Dover.
With the integrity of the agri-food industry in NI possibly at stake, it is understandable therefore that many local businesses want to see the definition of a “qualifying good” tightened down. That is something which NI Secretary of State Brandon Lewis has now committed to do “during the course of 2021” in consultation with these businesses and the Stormont Executive.
He is also to bring forward separate legislation before the end of 2020, known as “anti-avoidance provisions”, to enable action to be taken against businesses who seek to route their goods through NI to avoid checks.
But this has the potential to be messy, particularly given the all-island nature of supply chains, especially for the likes of milk, but also beef, lamb and pork. And what about the 50% of NI red meat that goes through Dublin port to Britain? Either way, Brexit isn’t done by the end of this year.
Read more
NI keen to close backdoor route
Brexit: forecasting UK trade realignment
Assuming the EU and UK does eventually conclude a trade deal, possibly by early November, it will help ensure that existing trade flows continue across these islands.
However, the UK is still outside the EU, so checks will be required on goods at borders, which will add cost and bureaucracy for traders.
The Irish protocol within the Brexit Withdrawal Agreement means that trade can flow unfettered across Ireland and into the EU. But there will be checks on goods coming from Britain to NI, while in the opposite direction, the UK government has now published draft legislation on what constitutes a “qualifying good”.
Initially, the definition has been left vague, and any EU good that is present in NI, or any good that is processed in NI, can move to Britain without any checks.
The issue with such a broad definition is that it potentially leaves NI as a backdoor route to Britain to avoid controls at the likes of Holyhead or Dover.
With the integrity of the agri-food industry in NI possibly at stake, it is understandable therefore that many local businesses want to see the definition of a “qualifying good” tightened down. That is something which NI Secretary of State Brandon Lewis has now committed to do “during the course of 2021” in consultation with these businesses and the Stormont Executive.
He is also to bring forward separate legislation before the end of 2020, known as “anti-avoidance provisions”, to enable action to be taken against businesses who seek to route their goods through NI to avoid checks.
But this has the potential to be messy, particularly given the all-island nature of supply chains, especially for the likes of milk, but also beef, lamb and pork. And what about the 50% of NI red meat that goes through Dublin port to Britain? Either way, Brexit isn’t done by the end of this year.
Read more
NI keen to close backdoor route
Brexit: forecasting UK trade realignment
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