Brexit trade barrier across the Irish Sea gets higher today
Most small Scottish and UK businesses have had to stop selling to Northern Ireland, as well as to Europe, because they can’t comply with new EU customs rules introduced today (Dec 13).
This is an important moment - despite the comparative lack of press coverage - because it signifies the shape of things to come - the trade barrier Boris Johnson promised would not exist across the Irish Sea very much does and it is getting higher as time goes on.
Every time the EU adopts new rules or modernises old ones and the UK doesn’t, it gets harder for trade to happen between the two countries. That is already an issue at Dover and other EU ports.
But it is a deepening issue with Northern Ireland because free trade between there and the rest of the UK is more of a political as well as an economic hot potato.
The Northern Irish Assembly split over the Windsor Agreement
These new non-tariff trade barriers are going up just two days after the NI Assembly voted to extend the special trading arrangements agreed by Boris Johnson over the status of Northern Ireland, after he said there would be no trade barrier in the Irish Sea.
To make things even more difficult, this barrier is going to get bigger and bigger over time as the EU and UK rules diverge. Initially of course it wasn’t so much of an issue because most of the UK’s goods and services met EU 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 for Brexit, Northern Ireland’s Unionist parties didn’t vote to extend the special trading arrangements, causing concern over the lack of cross-community support for the framework, known as the Windsor Agreement. They voted against it in Stormont because they would prefer to see a hard border reinstated across Ireland.
This issue was something that opponents of Brexit forecast time and time again. Scotland did not vote for Brexit - yet it has been forced to take part in this farcical charade. It is damaging Scottish businesses and the Scottish economy.
What is the new EU regulation coming into force today?
The EU has modernised product safety rules with the General Product Safety Regulation (GPSR). Some of its effects are:
- Items sold in NI now have to have a batch or serial number
- They need clear instructions and safety information "in a language which can be easily understood by consumers".
- Companies selling products in NI need to have an authorised agent in the territory
- Any breach of the rules can lead to a conviction or a fine
Who is affected?
It is not worthwhile for most small businesses to take on the extra cost, time and risk of complying with two sets of regulations - so the only alternative for them is to stop trade altogether across the Irish Sea.
Many small businesses felt ambushed 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 Isolated Heroes, told the National that she only found out about the regulation through other businesses talking about it on social media a few days before the change.
She said the lack of information on the policy is “crazy” and has called on the UK Government to issue more detailed guidance to help businesses prepare for the change.
“It just feels like more red tape and for it to come into place in December when it’s our busiest time of year as an online retailer for manufacturing, shipping and sending products, it just feels like something we’ve got no time to learn.
Retro 1970s bedding company Weirdstock founder Johanna Haughey-Lewis who is from Northern Ireland herself, posted online:
“So sorry to our wonderful Northern Ireland and EU customers. Due to new EU regulations called GPSR, we're having to pause shipping to Northern Ireland and the EU for a bit. (NI is still part of the single market so GPSR applies there too)...
“As many of you know, I am from Northern Ireland. Weirdstock has a wee customer base there so I am finding this particularly frustrating. But at the same time I am determined to find a solution.”
Conclusion - this barrier is only going to get bigger
FT policy editor Peter Foster’s book “What Went Wrong With Brexit” details how the Brexit red tape for UK businesses is getting worse not better over time. Every time the EU updates a regulation or brings in a new rule and the UK doesn’t do the same, that barrier gets higher.
When Boris Johnson said there would be no trade barrier down the Irish Sea he was promising something he could not deliver. UK politicians were warned that this approach would cause increasing difficulties for Northern Ireland but they took no notice.
Now the pro Brexit lobby’s mis-selling is costing Scottish businesses and the Scottish economy dear, as well as 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 the other member states.
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