Although the UK left the EU single market and customs union at the beginning of last year, it is only now at the start of 2022 that they are introducing border controls on goods entering the UK from the EU.

This is a two-phase process, with notification required from 1 January and veterinary certification and inspections due to start on 1 July 2022.

Irish exporters are excluded from this process following a unilateral declaration by the UK government just before Christmas for what they describe as the duration of negotiations with the EU on the implementation of the Northern Ireland protocol.

This news is welcome and represents a further deferral of the additional paperwork and administration associated, in particular with veterinary certification.

The delay also creates more time for movement from a paper-based system to an electronic version that is currently being addressed in the technical committee set up by the Trade and Co-operation Agreement (TCA).

Irish exports excluded from controls

While border controls haven’t yet been introduced on Irish sea ports by the UK, they are now in place at ports serving mainland Europe. So far, reports are of a light-touch approach being adopted by the UK.

Given the current COVID difficulties and pressures on supply chains, this makes perfect sense, as the last thing required is another hurdle in keeping supermarket shelves stocked.

The exclusion of Irish exports from the UK border controls will be welcomed by Irish traders, but, as it is linked to the protocol negotiations, it is likely to be short term.

There may be a case for having it made more a long-term issue, but, here, there is the question of compliance of World Trade Organisation (WTO) rules for international trade.

Unless there is a registered trade agreement, as is the case between the UK and Australia and New Zealand, a WTO member cannot create preferential trading arrangements for another country without making the same terms available to all members.

In the case of giving an exemption to Ireland, that would appear not to comply with this.

Other Brexit issues

Moving into 2022, there is a hope that the issues around the operation of the NI protocol can be sorted in a way that is satisfactory to both the UK and EU.

The EU approach in the second half of 2021 was solutions-focused, as opposed to the more idealistic approach adopted during negotiations.

The ultimate solution for all trade is that the UK decides to adopt the EU sanitary and phytosanitary standards and remove all veterinary barriers to trade.

Given that they are only beginning to enforce these at the UK end, there is little practical benefit in maintaining the divergence beyond symbolism.

The other big concern for Irish farmers in 2022 is the UK trade deals. The Australian deal is now moving into the ratification process, with the New Zealand deal to follow.

This means that by the end of this year or early 2023, Australian and New Zealand beef, lamb and dairy products could be competing with Irish in the UK market place.

If world prices for these commodities remain at present levels, then their prices would be on par with Irish. The concern for Irish farmers is when restocking is complete in Australia, what price will their beef and sheepmeat be then?

Brexit has had no negative impact on Irish exporters in the first year, but that is unlikely to continue in the longer term.