Yesterday the deadline to broker a trade deal between the UK government and the EU was extended further after negotiations had seemingly reached deadlock. Neither side will be happy to walk away from the table with a no-deal (or a Canadian style or Australian style deal as many members of the government like to refer to it!) so it made sense to extend the deadline to give both factions more time to thrash out some sort of agreement.
Failure To Reach Agreement Would Result In Extra Friction On Trade
Here in Northern Ireland we are following this saga more than most as no deal will affect us here probably more than any other place in the UK. As Seamus Leheny, policy manager for Logistics UK in Northern Ireland, pointed out in an article in the Belfast Telegraph yesterday, failure to reach agreement would result in “extra friction” on trade from Great Britain to Northern Ireland.
He said: “The Northern Ireland Protocol acts as a parachute for Northern Ireland in the event of a no-deal.
“But a no-deal will result in extra friction on Great Britain to Northern Ireland trade and raises issues on Northern Ireland to Great Britain.
“This is why we desperately need that deal.”
The article by Michael McHugh goes on to say that:
Northern Ireland Protocol Regulations
`Under the Northern Ireland Protocol, trade in goods between Northern Ireland and Ireland, and between Northern Ireland and EU member states, will continue unaffected, with no change at the border, no new paperwork, and no tariffs or regulatory checks, official advice states.
It says: “At the end of the transition period, there will be no change for the movement of goods covered by the Protocol between Northern Ireland and EU member states, including Ireland.
“That means there will be no new paperwork; no tariffs, quotas or checks on rules of origin; nor any barriers to movement within the EU Single Market for goods in free circulation in Northern Ireland.
“No EU member state will be able to apply any tariff or related barriers to goods from Northern Ireland.”
The EU is obliged under Article 5 of the Protocol to guarantee tariff-free, frictionless access in any scenario from December 31 2020.
Guidance to businesses in Northern Ireland adds: “This does not just apply to movements from Northern Ireland to Ireland: it applies to movements to any other EU member state, including for example through the use of transit procedures.
Northern Ireland Businesses Will Have Unfettered Access
“Northern Ireland businesses will have unfettered access to the whole of the UK market as well as the guaranteed ability to trade freely within the EU Single Market.
“In addition, any approvals or certifications secured in order to place goods on the market in the EU will be recognised when seeking to place the same goods on the market in the United Kingdom – avoiding the need for additional approvals to access the UK market.”`
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