This is a subscriber-only article
Responding to a UK government consultation on how the UK internal market will function once the Brexit transition period ends on 31 December 2020, the Ulster Farmers’ Union (UFU) has highlighted concerns about future operation of trade routes through Dublin Port.
Approximately half of all Northern Ireland (NI) agri-food output is sold in Britain and about half of that transits via Dublin, given that it is a faster route to access markets in the south of England, than using Belfast or Larne to go to Cairnryan in Scotland.
We are concerned that NI goods could still face commercial discrimination
“There are important outstanding questions as to how unfettered access to the UK internal market can be delivered via Dublin,” pointed out UFU president Victor Chestnutt.
In its consultation paper, the British government sets out two main principles to ensure free market access for all regions of the UK from 2021 onwards.
The first is the principle of mutual recognition, which allows for the fact that there might be some differences in policy in devolved regions, but each region should recognise that overall standards are the same.
The second is the principle of non-discrimination, which guarantees the right of all companies to trade unhindered in any part of the UK.
Complicating factor
But there is a complicating factor in all of this – as part of the Brexit withdrawal agreement, the UK signed up to the Irish protocol, which means NI will follow EU rules on goods, allowing free trade flows across the Irish border.
Despite that, the UK government has guaranteed that NI companies will have unfettered access to the market in Britain.
The UFU president is still to be totally reassured on that.
“We are concerned that NI goods could still face commercial discrimination in the (UK) market as a result of differentiation that arises as a result of the protocol,” said Chestnutt.
He also warned that these issues could be exacerbated if NI comes to be regarded as a backdoor route for EU and non-EU produce to access the market in Britain.
“This must also be addressed,” he added.
State aid
The Irish protocol also means that NI will follow various rules around subsidies that government can give to business, commonly referred to as state aid.
But the UK will have its own state aid regime, so could implement a significantly different tax system, or give much greater amounts of grants to companies, that would benefit them over rivals in NI or the EU.
“We’re not saying that the UK should sign up to the EU state aid rules. However, there shouldn’t be that much of a difference,” suggested Chestnutt.
He also pointed out that when it comes to future movement of goods from Britain to NI, with the Irish protocol in place, it means that the UK government cannot guarantee anything at present, without getting the agreement of the EU.
SHARING OPTIONS: