A ‘new Windsor framework’ has been agreed with the European Union to overcome the trade barriers in Northern Ireland (NI) following Brexit.
In the new agreement:
- Green and red lane routes will be established
- Goods staying in the UK will use a green lane to avoid customs bureaucracy
- Goods moving to the EU will use a red lane
Prime Minister Rishi Sunak said that Parliament will have a vote but: “At the appropriate time.”
Reacting to the announcement of the framework head of International Trade, Dominic Goudie told Food Management Today: “We are pleased that an agreement has been reached on the Northern Ireland Protocol. Any deal to improve the movement of goods is welcome, after the significant uncertainty food and drink manufacturers have faced over the past two years.
“We look forward to seeing the details of this agreement, and how it will provide a pragmatic and business friendly solution that will ensure Northern Irish consumers can continue to enjoy the full choice of quality UK products, without facing higher prices.”
Rupert Ashby, chief executive of the British Frozen Food Federation commented: “The British Frozen Food Federation welcomes the conclusion of the negotiations between the UK Government and European Commission. The settlement reached on the Northern Ireland Protocol is good news for businesses throughout the frozen food supply chain which are looking forward to more efficient trade relations within the UK and to the EU.
“For frozen food producers, distributors and retailers which have faced difficulties since the Withdrawal Agreement, this marks the beginning of a positive new chapter.
“Frozen food has become an increasingly popular choice for consumers looking for high quality and affordable options in their weekly shop and I know that our members will seek to reach more of the Northern Ireland and EU markets through this renewed opportunity.”
PTF director general Rod Addy said: “The requirement for special labelling for goods destined for Northern Ireland, designating them ‘not for EU’ will entail some disruption for food and drink producers. However, promised transitional support from Government for this is good news, as is the phased implementation of this labelling, from 1 October 2023 through to 2025 on current timescales.
“Beyond that, this agreement is positive news for the food and drink industry in many areas. It ensures no ban on UK products such as sausages and minced meat destined for NI.
“Initial indications are that the deal has widespread political support, which will be crucial in getting it over the line – any significant opposition could give pause for thought. The Stormont Break principle allows the Northern Ireland assembly some autonomy to veto EU single market laws.
“However, as with so many things over the last few years, how the deal is implemented over the coming months will be fundamental to its early success. For this to happen, Whitehall and the UK Parliament will need to work closely with all parts of the trade to deliver pragmatic solutions that work for everyone.
“The removal of the need for separate certificates for each different product on the same consignment of goods is most welcome. The use of green lanes for goods destined for NI using a special scheme for trusted traders and red lanes for Ireland and the rest of the EU, with customs checks at NI ports will need to be underpinned by robust data-sharing systems. While good in principle, we will need to see how reduced frequency of ID checks and simplified customs designations for products work in practice. We need DEFRA to engage and be listening.
“We must also remember that while positive progress has been made over the past few days, Brexit is by no means done and hard work still lies ahead on the technical detail of EU-UK trade. Areas such as triangular trade, where EU products exported to the UK cannot in some cases be re-exported to the EU, and the target operating model for UK border controls remain big issues.”
Cold Chain Federation chief executive Shane Brennan said: “Under the Protocol, cold chain operators working between Great Britain and Northern Ireland have had to contend with great uncertainty, frequent disruption, and hugely increased bureaucratic burden and expense. Today’s announcement is a very welcome step towards a much more efficient and sustainable system with the potential to remove most of the current practical problems, which will be better for consumers and businesses alike.
“There are important details that Government will need to get right, such as paperwork requirements for the green lane and support for businesses in transitioning to the new systems, but today is a crucial and long-awaited milestone towards allowing the food industry to get on with the job at hand.”
Record exports
The news come just as the UK’s largest manufacturing sector, the food and drink industrty, posted record figures for exports in 2022, according to the Food and Drink Federation’s (FDF) full-year trade snapshot.
The FDF has compiled the latest trade figures released by His Majesty’s Customs and Excise, which show there’s been a resurgence in export sales in the food and drink , with most categories now exceeding pre-pandemic levels to reach a record £24.8bn.
Exports to Europe rose 22% to £13.7bn and developing markets also did well , with fast-growing economies like Vietnam nearly doubling. For the very first time, exports to non-EU markets have broken through the £10bn barrier, hitting £11.1bn.
While supply chain disruption and high energy bills have played a part in the rise in value of UK exports, there has also been strong volume growth in most product categories over the last 12 months. The FDF said this shows that the global appetite for high quality UK food and drink products continues to grow around the world.
Chocolate remains the UK’s top food export, worth £824m, but there are clear indications that next year this could be overtaken by cheese, which has achieved rapid growth in overseas sales.
