The President of the European Commission, Ursula von der Leyen, says that the Northern Ireland Protocol must be fully implemented.
Von der Leyen says that fully implementing the protocol is the only way to both maintain political stability in Northern Ireland while also “protecting the integrity of the EU single market". She insisted that current political difficulties have not been caused by the Protocol but rather are the result of Brexit itself.
By contrast, David Frost, the UK minister tasked with managing EU-UK trade diplomacy, recently suggested that the Northern Ireland Protocol is unsustainable in its present form.
In a statement, Frost said that while businesses have made efforts to adapt, “it is hard to see that the way the Protocol is currently operating can be sustainable for long”.
Supply chain woes
Politically, the Northern Ireland Protocol aims to prevent a hard border between Northern Ireland and the Republic of Ireland. To facilitate that outcome, the Protocol allows for certain border controls between NI and the rest of the UK.
Much of the disagreement between UK and EU diplomats centres around the implementation of those controls. Notably, the controls create significant disruption for many businesses that move goods between NI and GB.
Not just a question of trade
The politics of the Northern Ireland Protocol extend far beyond the minutiae of trade policy and diplomacy. Some analysts worry Brexit-related tensions threaten to further stoke up violence and sectarian division.
No easy fix in sight
Given the complex geopolitics, and the starkly different messages from EU and UK policymakers, businesses need to plan for uncertainty.
Companies that ship goods between Great Britain and Northern Ireland will need to carefully monitor developments, and adapt as new border controls are implemented.
For a tailored supply chain solution that adapts to real-world changes, get in touch with re:TRADE.
re:TRADE, powered by VAT IT, is a complete supply chain solution that leverages decades of experience and a network of global contact to help make importing as seamless, efficient and cost effective as possible.