What changes tonight with Brexit?

When the clock struck 12 midnight in Brussels on New Year’s Eve, the UK was no longer be part of the EU customs are and single market, though special arrangements have been made for Northern Ireland to continue participation in the single market.

Up until that point, selling to Britain was no different than selling something in Ireland. Now it will be like selling to the US - with the exception that no taxes (tariffs) will be payable on any product.

Change for factories not farmers

From now on, Irish exports to Britain of goods that have animal origin (meat and dairy), will require a veterinary health certificate to accompany every consignment. That means a 20t load going for processing in a burger factory in Britain will have a certificate and even small consignments will also have to have this certificate.

Additionally, exporters will have to have made customs declarations for every transaction, even though no tariffs will apply as a result of the Christmas Eve agreement.

Will these cost?

Adding this extra administration has been estimated to add a cost of between 10-12c/kg on beef carcases and 1.2c/l on milk. There is also the prospect of inspections at ports of entry on trade between Britain and the EU, though the UK is going to phase this in during the first half of 2021. They will be introduced by the EU immediately and despite huge investment to be ready in Dublin Port, there are concerns that inspections will cause traffic disruption in the port area.

What about doing business in Northern Ireland (NI)?

A special arrangement was made in the withdrawal agreement for NI to remain part of the EU single market.

This means that creameries can collect milk for processing from either side of the border and NI farmers can continue sending their lambs south for processing and sale to the rest of the EU. Cattle and pigs will be able to continue to going north to factories for processing or farms for further feeding.

What about sales of live animals to Britain?

This will be a problem because of the six-month standstill required for animals, which the UK may choose to waive and replace with its own standard but it isn’t in place at present.

Farmers in NI have been caught by this when importing sheep from Scotland and it would equally apply to a farmer who wants to source a bull for breeding from Britain - they will have to complete a standstill period of six months.

Is this the end of Brexit?

It is the end, insofar as the UK is no longer part of the EU single market and customs union, which it has been since last January when it formally ceased being members of the EU.

However, the agreement between the EU and UK for future trade will be reviewed in five years’ time and there is also a Trade Partnership Council, with a series of specialised trade committees for implementing the agreement.

This is a structure that can make modifications where both parties agree and this has the effect of making Brexit a rolling negotiation.