BBC NI economics and business editor
BBCThe UK-EU Summit: A Turning Point for the Irish Sea Border
The upcoming UK-EU summit holds immense potential to reshape the dynamics of the Irish Sea border, aiming to alleviate the turbulence that has plagued trade and relations since Brexit. Efforts to reset the relationship between the UK and European Union signal a promising change after years of contention, and the stakes could not be higher.
What’s on the Agenda?
Set for Monday, the summit is expected to feature an “agreement to agree” on various pressing trade issues, particularly concerning the invaluable agri-food sector. Such a deal could pave the way for a transformative agri-food agreement later this year, significantly lessening the burdens of checks and controls on shipments from Great Britain to Northern Ireland.
What Could Change?
An agri-food agreement would potentially eradicate the burdensome “Not for EU” labels and eliminate most physical inspections of goods. This is critical for businesses like Arcadia Deli in Belfast, which have been grappling with the complexities introduced by the Irish Sea border regulations. Co-owner Laura Graham-Brown reflects this sentiment when she states:
“Our partners in England have decided they are not supplying Northern Ireland until further notice until they can clarify how to make it easier. This is detrimental to our business and is beginning to show as our counter becomes increasingly empty.”
The urgency for positive changes resonates through her words. She emphasizes:
“All we want is to sell cheese and olives. We need something to happen fairly quickly.”
What’s at Stake?
While optimism prevails, it’s important to recognize that there are no guarantees regarding the scope of the agreements in discussion. **Businesses will require time** to analyze any new regulations, and as Stuart Anderson from the NI Chamber of Commerce notes, there is a pressing need for agreements that substantially reduce bureaucratic hurdles within the agrifood supply chain.
Polling from Queen’s University Belfast highlights waning unionist support for the current Brexit deal, the Windsor Framework, indicating a national necessity for change. Professor David Phinnemore asserts that there has been a significant drop in support among those identifying as “slightly unionist,” which fell from 51% to a mere 26% over the past year. The key to reversing this trend is a closer UK-EU relationship that reduces barriers for goods moving from Great Britain to Northern Ireland.
Government Stance and Commitment
The Labour government has committed to pursuing a new agri-food agreement that aims to eliminate most of the border checks introduced by the previous government’s Brexit deal. This deal, which aims to benefit all of the UK, would have particular relevance for Northern Ireland, as it continues to effectively operate within the EU’s single market for goods.
According to the Centre for European Reform, while such a deal may not hold significant macroeconomic importance for the UK overall, Northern Ireland stands to be a major beneficiary. Their assertion that “the closer UK regulations come to those of the EU, the less the need for border controls” reiterates the urgency of these negotiations.
The Irish Sea Border: A Complexity of Politics and Economics
The Irish Sea border emerged from a Brexit deal reached in 2019, later revised into what is now known as the Windsor Framework. This arrangement was created to maintain an open border between Northern Ireland and the Republic of Ireland while ensuring compliance with EU regulations.
For many unionists, this border is viewed as a fundamental challenge to their constitutional rights, leading to political unrest and government standstill in Northern Ireland. The Democratic Unionist Party (DUP) has notably prevented the operation of the power-sharing government from 2022 to 2024 in protest against these arrangements.
What Would an Agri-Food Deal Look Like?
Such deals can take various forms—most prominently the New Zealand-style and the Swiss-style agreements. The EU’s agreement with New Zealand reduces paperwork requirements, benefiting both parties by recognizing high food standards and minimizing checks. However, New Zealand maintains its own standards, meaning some inspections still occur.
The Swiss model is even more beneficial, as there are no regulatory border controls for trade, provided Switzerland agrees to comply closely with EU regulations. Although the EU has extended this offer to the UK, **official responses remain non-committal**, highlighting the complexities of such negotiations.
Enduring Border Processes
It’s vital to understand that two distinct borders exist in this context. One focuses on product standards, ensuring that goods are legally marketable. The other is customs-related, ensuring applicable tariffs are paid. An agri-food deal can effectively remove barriers concerning product standards but does not address customs regulations, leaving businesses in Great Britain to navigate customs declarations and potential shipment delays.
As negotiations loom, the direction taken at the summit could be pivotal for businesses in Northern Ireland, shaping a pathway toward a more harmonious and efficient trading environment.
