NI Retail Consortium and NI food industry react to UK-EU Brexit Deal
The NI Retail Consortium and NI food industry has reacted to the UK-EU trade deal.
Northern Ireland Retail Consortium Director, Aodhán Connolly said“Both the retail industry and households across Northern Ireland welcome the announcement of a free-trade agreement between the UK and EU. We hope this will protect consumers across the UK from billions in import tariffs on everyday goods. For Northern Ireland it also means a reduction in new customs frictions between GB and NI.
Free Trade Agreement
“This Free Trade Agreement, as well as the UK Trader Scheme which means 98% of trade GB-NI is tariff free, and the Movement Assistance Scheme which covers costly Export Health Certificates, are welcome Christmas presents for the business community and families across Northern Ireland. But even with a deal, retailers face a very different retail landscape from January 1st, with many new checks and costs. The result will be rising costs for businesses, some of which may impact consumers.
Maximum flexibility
“Retailers have spent huge amounts of time and money preparing for this – building new customs and VAT processes, working with suppliers to ease logistics, and much more. We have engaged with the Government and the EU at every level but with so many new systems and regulations in place, no amount of preparation for retailers can totally prevent disruption to food and other essential goods. Therefore, we need to ensure maximum flexibility from both the UK Government and the EU to prevent breakdowns in the supply chain.
Cliff edge
“There is still much hard work needed on Northern Ireland issues if we are not to face another cliff edge in three or six months and retailers are to continue to give NI families the choice and affordability that they so desperately need. We need as soon as possible to work after Christmas to have the EU, UK Government and NI Executive to work with us to find workable, sustainable long-term solutions.”
The NI Food and Drink Association (NIFDA) gave a cautious welcome to the deal
NIFDA Chair Nick Whelan said that, while preferable to a no-deal scenario, there is still clarity needed around bureaucracy and dispute resolution.
Nick Whelan said “For the past four years the Northern Ireland food and drink industry has warned consistently of the dangers of any Brexit outcome that would increase barriers to trade or disrupt supply chains north-south or east-west. The agri-food industry on these islands is highly integrated, and anything less than frictionless trade between Northern Ireland, Great Britain and the Republic of Ireland will add costs and reduce choice to the consumer, and ultimately cost livelihoods.
Far from perfect
“As was the case when the Withdrawal Agreement was agreed, this deal is welcome insofar as it takes us from the cliff edge – but it is far from perfect, and we still need clarity on a number of key areas. If the Northern Ireland protocol is to be durable, the UK and EU will need to address the challenges to local consumers of reduced choice and increased cost as a result of new administrative burdens on GB – NI trade. Additionally, we need a fair arbitration system to be in place from day one as there will be errors and teething problems as we come to terms with new procedures, and we want to minimise waste.
Continuity of supply
“The food industry is working very hard to maintain continuity of supply throughout the Covid-19 pandemic. Our key workers across the food supply chain – farmers, food factory staff, delivery drivers, retail assistants and everyone in between – have really stepped up to the plate to ensure food has stayed on the shelves over the past 9 months. The additional bureaucracy required as a result of the deal does not make this challenge easier, but leaving without a deal would have magnified it and brought serious pressure on the industry at the worst possible time.
“Agri food is Northern Ireland’s biggest manufacturing industry. Northern Ireland food and drink is key stakeholder to drive economic recovery and the prosperity of Northern Ireland in the coming decade. It is one of the few sectors in Northern Ireland to have announced increased investment over recent months. With the right support we can continue to grow even stronger, and make the most of any opportunities that will be presented post-Brexit.”
