After months of negotiation, the UK Prime Minister, Rishi Sunak, and the President of the European Commission, Ursula von der Leyen, have agreed a deal to mitigate many of the negative impacts of the Northern Ireland Protocol, which was agreed as part of the UK’s exit from the European Union. This is is known at the Windsor Framework. For those who trade with Northern Ireland, this deal will represent an improvement in ease of doing business.
At the core of the deal is a green lane/red lane system for goods travelling from Great Britain to Northern Ireland and from Great Britain to the Republic of Ireland respectively. The green lane from GB to NI will require businesses to register as a trusted trader under the new UK Internal Market Scheme, however once businesses register it will dramatically cut down on customs processes and checks. The red lane will be for goods going through NI from GB to the Republic of Ireland, which will still be subject to checks.
For online businesses, the threat of customs declarations on packages sent from GB to NI was a considerable concern. This deal makes permanent the existing grace period that removed the need for such declarations.
On VAT and excise duties, Northern Ireland can now diverge from EU rules, meaning UK Government policies on VAT and alcohol duty can apply fully to Northern Ireland.
For food and drink businesses, the deal also sees UK public health and safety standards applying in Northern Ireland, which will remove more than 60 EU food and drink regulations. Those moving food by the green lane will only need to complete one certificate rather than numerous certificates for each lorryload of goods. This agreement will require a ‘Not for EU’ sticker to be added to products sold in NI.
Helen Brocklebank, Walpole CEO, said: “This deal puts British businesses that trade into Northern Ireland on a sure footing for the long term. It will not solve all the problems businesses face, but it is a big step in the right direction. More widely, it represents a downpayment on the move many businesses want to see to a broader, more constructive partnership between the UK and EU. I hope that the UK Government will use the trust this deal has created to build upon it and reduce the trade barriers that still exist between the EU and UK as a whole.”
Does your business trade with Northern Ireland? Please let our policy team know what you think of the deal by emailing [email protected]
