No tariffs for Irish goods entering NI in no-deal Brexit

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Syndicate Post image

However in a seemingly confusing loophole in no deal plan, Northern Ireland's border would remain open for at least 12 months and goods entering from the Republic would not face tariffs to preserve the Good Friday agreement.

"The measures announced today recognise the unique circumstances of Northern Ireland".

President Trump on Thursday declared that Europe was "being ripped apart" by the chaos caused by Brexit, as the United Kingdom continued struggling to manage a workable exit from the EU.

Tonight MPs will vote on whether to go for a No Deal Brexit.

The Government insisted the arrangements will not create a border down the Irish Sea.

The UK's trade policy minister, George Hollingbery, has confirmed that the UK's temporary import tariffs "will not apply" to goods crossing from Ireland into Northern Ireland.

It said it would only apply a small number of measures necessary to comply with worldwide legal obligations, protect the biosecurity of the island of Ireland, or to avoid the highest risks to Northern Ireland businesses - which will not require land border checks.

The government said it recognises that Northern Ireland's businesses and farmers will have concerns about the impact that the government's approach will have on their competitiveness. Notably, the documents are in draft form, so there may yet be changes from UK Gov. VAT registered businesses would continue to account for VAT on their normal VAT returns.

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Small businesses trading across the border will be able to report Value-Added Tax online without any new processes at the border.

Proposed tariff rates on a range of food products were announced as a proportion of the so-called "most favoured nation" (MFN) now imposed by the European Union on imports from countries which do not have a free trade agreement. Plants and plant products from a non-EU country which have not been previously checked by an EU Member state would also be checked at authorised inland trade premises. However, there would be no checks between Northern Ireland and Britain.

In the case of no-deal, the UK Government is committed to entering discussions urgently with Brussels and Dublin to agree long-term arrangements.

The government will lay the appropriate legislation in light of the outcome of the vote on no deal today.

"The abruptness of changes to tariff rates in the event of a no-deal exit from the European Union would be an unwelcome shock to numerous businesses affected".

But the Ulster Farmers' Union said it could see no upside to the plans: "The risk is farming becomes a secondary industry in Northern Ireland rather than primary, which has a significant knock-on effect for the rest of NI's economy, especially in rural areas".

The decision to refrain from checks at the Irish border would be temporary while longer term solutions were negotiated.

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