Politics
Brexit trade barrier across Irish Sea rises today
Most small Scottish and British businesses have had to stop selling to Northern Ireland as well as Europe because they cannot comply with new EU customs rules. presented today (December 13).
This is an important moment – despite the relative lack of media coverage – as it indicates the shape of things to come – Boris Johnson's promised trade barrier would not exist across the Irish Sea and it is increasing at over time.
Every time the EU adopts new rules or modernizes old ones and the UK doesn't, it becomes more difficult to trade between the two countries. This is already a problem in Dover and other EU ports.
But this is a growing problem with Northern Ireland, as free trade between that country and the rest of the UK is more of a political hot potato than an economic one.
Northern Ireland Assembly divided over Windsor Agreement
These new non-tariff trade barriers will be lifted just two days after the NI Assembly vote to extend special trade agreements agreed by Boris Johnson on the status of Northern Ireland, after declaring that there would be no trade barrier in the Irish Sea.
To make matters even more difficult, this obstacle will become bigger and bigger over time as EU and UK rules diverge. At first, of course, this wasn't much of a problem because most British goods and services met European standards.
In order to avoid a hard border across the island of Ireland, Boris Johnson agreed that Northern Ireland would be treated as if it was still part of the EU in terms of trade rules.
Despite voting in favor of Brexit, Northern Ireland's unionist parties did not vote in favor of extending special trade deals, sparking concerns about a lack of cross-community support for the framework, known as Windsor Agreement. They voted against it at Stormont because they would prefer to see a hard border reinstated across Ireland.
It’s a question that opponents of Brexit have anticipated time and time again. Scotland did not vote for Brexit, but was forced to participate in this grotesque charade. This is damaging Scottish businesses and the Scottish economy.
What is the new European regulation that comes into force today?
The EU has modernized product safety rules with the General Product Safety Regulation (GPSR). Some of its effects are:
- Items sold in NI must now have a lot or serial number
- They need clear instructions and safety information “in language that consumers can easily understand.”
- Businesses selling products in NI must have an authorized agent in the territory
- Any violation of the rules may result in a conviction or fine.
Who is affected?
It's not worth it for most small businesses to take on the additional costs, time and risks of complying with two sets of regulations. The only alternative for them is therefore to completely stop trade across the Irish Sea.
Many small businesses felt trapped by this situation which was not communicated to them by the UK government, saying they found out about it on social media.
Samantha Paton, founder of Dundee women's clothing company Insulated Heroes, said National that she only found out about the regulations through other companies talking about it on social media days before the change.
She said the lack of information on the policy was insane and called on the UK government to publish more detailed guidance to help businesses prepare for the change.
It just looks like more red tape and putting it in place in December when it's our busiest time of year as an online retailer for manufacturing, shipping and sending products, it just seems like something we don't have time to learn.
Retro 1970s Bedding Company Weird founder Johanna Haughey-Lewis, herself from Northern Ireland, put online:
I am so sorry to our wonderful customers in Northern Ireland and the EU. Due to new EU regulations called GPSR, we have to temporarily suspend shipping to Northern Ireland and the EU. (NI is still part of the single market so GPSR applies there as well)…
As many of you know, I am from Northern Ireland. Weirdstock has a small customer base there, so I find this particularly frustrating. But at the same time, I am determined to find a solution.
Conclusion: this barrier will only get bigger
Financial Times political editor Peter Fosters delivers What went wrong with Brexit details how Brexit red tape for UK businesses is not getting worse over time. Every time the EU updates a regulation or introduces a new rule and the UK fails to do the same, this barrier increases.
When Boris Johnson said there would be no trade barrier in the Irish Sea, he was promising something he could not keep. British politicians were warned that this approach would lead to increasing difficulties for Northern Ireland, but they paid no attention.
Today, mis-selling by pro-Brexit lobbies is costing Scottish businesses and the economy dearly, while limiting choice for Irish consumers.
Scotland did not vote for Brexit and yet no compromise was offered. An independent Scotland back in the EU would be able to trade freely with the entire island of Ireland, as well as with other member states.
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