Business

Brexit: Business groups welcome deal on border checks but urgently renew call for grace period

The EU and UK have reached an "agreement in principle" on issues including border control posts and the supply of medicines.
The EU and UK have reached an "agreement in principle" on issues including border control posts and the supply of medicines. The EU and UK have reached an "agreement in principle" on issues including border control posts and the supply of medicines.

TRADE groups have cautiously welcomed “an agreement in principle” between the EU and UK on how border checks will work in Northern Ireland, but businesses have urgently repeated their calls to be given more time to phase in the new arrangements from January 1.

The British Government yesterday confirmed it will pull controversial measures which would have breached of the Withdrawal Agreement, including the Northern Ireland protocol.

In return, it’s thought the EU will minimise checks on food and medicine moving from Britain to Northern Ireland.

The full details will be published on Wednesday.

Aodhán Connolly of the NI Retail Consortium said ‘the devil will be in the detail’.

“We simply don’t know whether or not there will be a burden on retail or any industry as far as paper work or what needs to be implemented. We don’t know if there are going to be schemes that remove those frictions.”

Some observers said Tuesday’s agreement in Brussels signalled improved relations between both sides, offering some hope that a last ditch EU-UK free trade agreement (FTA) could still be struck.

It comes one day after 32 business and civil bodies from across the north issued a united call for the EU and UK to conclude an FTA as soon as possible.

Deal or no deal, the Northern Ireland protocol will come into effect on January 1, with trade bodies still warning that businesses here need time to phase in the new arrangements, arguing that Covid-19 has hampered preparations.

It’s also thought that new trade posts at ports could take between three and six months to set up.

Business group have lobbied for a one-year implementation period. But it’s understood that any concession on a grace period, will be kept to a minimum.

Economy Minister Diane Dodds yesterday gave her backing to an extended implementation period.

“No matter what they come up with now, we still need an implementation period,” said Aodhán Connolly. “Business will not be ready. “

Stephen Kelly of Manufacturing NI said the 11-month transition period had effectively been lost as a result of Covid-19

“We would hope for a year’s grace. But as a minimum, we require for some things at least three months and for others at least six months in order to bed in.

“That’s just the bare reality, it’s nobodies’ fault.

“We’re now counting down to the end of this transition period in hours and no longer days and weeks.

“Regardless of what has been agreed in Brussels, Northern Ireland will need time to adjust to what the new arrangements are.

“The UK is not ready, the EU is not ready. There’s no point getting upset about it, we just need to face facts and we need more time to implement what has been agreed.”