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With the next round of Brexit talks due to begin on Monday 29 June, there remain real concerns about the lack of progress to date, and whether businesses will be ready for the new regime which kicks in once the transition period ends from 1 January 2021.
“The lack of trust between both parties is becoming a problem” acknowledged the chair of the Westminster House of Lords EU select committee, the Earl of Kinnoull, Charles Hay, addressing an online event on Friday.
However, he maintained that he hasn’t met anyone within the British government who do not intend implementing in full the Irish protocol as set out in the Brexit Withdrawal Agreement (a legally binding treaty). But he did acknowledge that there are “differences in interpretation” between both sides.
Urgency
He was joined on the panel by Irish MEP Mairead McGuinness and Northern Ireland (NI) Justice Minister Naomi Long, who both emphasised the urgency of making progress now.
It was Minister Long who made the most pointed remarks, criticising British Prime Minister Boris Johnson and his senior ministers for delivering “a false narrative” on the need for checks and controls on goods, especially those moving from Britain to NI.
Under the Irish protocol, NI remains part of the UK customs territory, but will follow EU rules on goods, allowing trade to flow unhindered across the Irish border. So, in effect, NI ports will be points of entry for goods coming into the EU. Those goods deemed to be “at risk” of transit across the Irish border will have to pay EU import tariffs.
If we continue with the delusion that this doesn’t require checks and infrastructure we run the risk of not being prepared
According to Minister Long, with the British government talking down the need for checks on goods coming into NI, it has created a sense of denial among politicians at Stormont. “If we continue with the delusion that this doesn’t require checks and infrastructure we run the risk of not being prepared at the end of the year, and that leaves business in a very difficult position,” she said.
She also warned that if both sides can’t ensure compliance with the law from the beginning, it will create opportunities for criminals. “We have a certain group of entrepreneurs in this community very good at exploiting loopholes in the law, in terms of organised crime, smuggling etc. We must encourage a culture of compliance from the beginning. The implications of not being prepared are enormous” she argued.
Future
However, the main problem for civil servants and policymakers in NI tasked with getting structures in place remains the lack of certainty around the future relationship between the UK and EU.
If a comprehensive free-trade deal is done that includes mutual recognition of standards, it greatly simplifies the implementation of the Irish protocol. But if no trade deal is reached, then much greater checks and controls are required.
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