In a call on Thursday, the prime minister and the president of the European Commission discussed Northern Ireland’s post-Brexit commercial arrangements.
As pressure mounts to break the diplomatic impasse, Rishi Sunak and Ursula von der Leyen have stated they will work together to find a solution to the Northern Ireland Protocol dispute.
In a call on Thursday, the prime minister and the president of the European Commission discussed Northern Ireland’s post-Brexit commercial arrangements.
Due to its resistance to the protocol, the DUP has blocked a return to powersharing at Stormont, the devolved parliament, in recent months, as a result of the lack of movement on the issue.
The DUP asserts that the protocol has weakened Northern Ireland’s position within the United Kingdom by erecting economic barriers to British trade entering the territory.
After Brexit, the UK and EU agreed to the mechanism to prevent the establishment of a hard border between Ireland and Northern Ireland.
However, it has essentially erected a border in the Irish Sea, as Northern Ireland must adhere to some EU import/export regulations, and products going from the United Kingdom to Northern Ireland are subject to a levy if they are “in danger” of being transported into the EU.
Attempts by the United Kingdom to circumvent the protocol through the Northern Ireland Protocol Bill have set Downing Street on a collision course with Brussels, which asserts that doing so would violate international law.
However, ties have improved in recent months, as a Downing Street spokesperson stated on Thursday “This afternoon, Prime Minister Rishi Sunak spoke with European Commission President Von der Leyen.
Regarding the Northern Ireland Protocol, they agreed on the significance of collaborating to reach a solution.
This is not the first time they have made such a commitment; when they met at COP27 in November, they agreed to collaborate.
This call comes less than a week after Mr. Sunak visited Belfast, during which he pledged to work “flat out” to restore power-sharing and find a solution to the issue.
However, in an article published on Monday in the Daily Telegraph, former DUP leader Arlene Foster said parties were given “almost no warning” of the visit and accused the prime minister of lacking love for the union.
Two years after the accord agreed to by former prime minister Boris Johnson, the British Chambers of Commerce (BCC) has urged the government to reconsider how trade with Europe may be enhanced.
Executives are “banging their heads”
In its latest critique of the economic impact of the UK’s departure from the EU, the business organization has cautioned that Brexit is not helping its members expand or increase sales.
The Office for Budget Responsibility (OBR) reported last month that Brexit had had a “substantial unfavorable impact” on trade volumes and business connections between UK and EU enterprises, and many economists have blamed it for recent tax increases to fill the UK’s £54bn fiscal black hole.
Shevaun Haviland, general director of the British Chambers of Commerce, has urged for an “honest discussion” to improve the UK-EU economic relationship.
“Nearly two years after the TCA was first agreed upon, businesses feel as if they are pounding their heads against a brick wall since nothing has been done to assist them.
She stated, “The longer the current problems remain unaddressed, the more EU merchants go elsewhere, and the more damage is done.”
The body proposes, among other things, a supplementary agreement with the EU that can eliminate or reduce the complexity of food exports for small and medium-sized businesses, as well as a Norway-style agreement that would exempt smaller businesses from the requirement to have a fiscal representative for VAT in the EU.
Always more might be done by the government
Food, agriculture, and fisheries minister Mark Spencer previously stated on Times Radio that the government could “always do more” to avoid trade friction.
“There is always more that can be done to facilitate the movement of trade.
He cited an increase in the number of seasonal worker permits available in the horticultural industry next year as evidence that the United Kingdom has achieved progress.
Hilary Benn, a Labour member of parliament and co-convener of the UK Trade and Business Commission, urged the government to prioritize facilitating trade between British and EU enterprises.
“Since Brexit, British businesses have been burdened with additional red tape, fees, and cumbersome customs inspections,” he said.
“While in the throes of a cost-of-living crisis, the government must now prioritize easing trade with Europe by removing the impediments that their unworkable pact has erected.”
