BUSINESS groups in Northern Ireland have again called for an implementation period to phase in new post-Brexit arrangements to avoid major disruption to trade.
It comes as a survey found that with little over three weeks to go, just one-in-five businesses in the north are prepared for the end of the Brexit transition period.
While the UK and the EU are still locked in a final bid to negotiate a trade deal, the Northern Ireland Business Brexit Working Group (NIBBWG) has warned that firms here still don’t have the information they need to prepare for January 1 2021.
Regardless of whether the EU and UK strike a trade deal, the standalone Northern Ireland protocol will come into effect in 24 days.
The protocol, introduced to avoid a hard border on the island, will keep the north inside the EU’s single market for goods and apply the EU’s customs rules at ports.
Goods moving from Britain to Northern Ireland will likely face checks. How it works in practice is the responsibility of the EU-UK Joint Committee.
An EU-UK trade deal would accelerate the committee’s work.
A free trade deal would also resolve many issues around tariffs. But a layer of bureaucracy could remain in the case of animal food products moving from Britain to the north. Each food in theory would require an Export Health Certificate.
The NIBBWG said a survey of 250 companies by 14 trade bodies found Covid-19 and a lack of resources had limited the ability of businesses to properly prepare for the new era.
The vast majority of the respondents purchase products from Britain, making them particularly vulnerable to the impact of the new arrangements.
The survey found that over 70 per cent had now registered for the new Trader Support Service (TSS), designed to assist the export of good between GB and NI.
But only a third of businesses had advised their suppliers in Britain to do the same.
The NIBBWG said: “From the survey responses, it’s clear that a substantial information gap is limiting the ability of businesses in Northern Ireland to prepare for a January 1 deadline.
“To combat these concerns, it is the view of the NIBBWG that an implementation period, agreed between the UK and EU, should be implemented to ensure that trade can continue without disruption in the short-term.
“This would protect businesses and supply, giving them time to properly adjust to new procedures.”
The working group has also said that a solution must be found for the ‘just-in-time’ supply chain, which relates to materials moved just before it’s needed in the manufacturing process.
It warns that supply chains may not work otherwise, making business in the north less competitive.
The NIBBWG called on the EU and UK must design easy to follow models to help different sectors and industries understand the steps they need to undertake to trade.
Trade bodies are still waiting for confirmation on a ‘retail movement system’ to remove friction and avoid price hikes for GB-NI goods.
Farm businesses are also waiting on a dedicated ‘agri-food movement assistance scheme’ for animal and plant products.
“We are still waiting even to find out if Northern Ireland can be part of EU trade deals which are crucial to our dairy sector,” said a NIBBWG spokesperson.
“This lack of detail is stopping businesses from farmers to SMEs to our largest NI organisations being able to plan for next year.
“With less than four weeks left, we need both sides to live up to their commitments to the people of Northern Ireland, and ensure that a workable solution for families and businesses can be delivered.”
