Shocking EU Trade Rules Shake Northern Ireland’s Supply Chains, Companies Sound the Alarm!

**Title: Post-Brexit Trade Rules Between Great Britain and Northern Ireland Cause Challenges**

*Header: Wholesaler Faces Headaches as New Trade Rules Come Into Force*

Post-Brexit trade rules between Great Britain and Northern Ireland are set to come into force this weekend, with implications for wholesalers like Derek O’Reilly. Under these rules, food and drink suppliers will have the option to use a “green” lane with less paperwork for goods coming into Northern Ireland from Great Britain, or a “red” lane with more checks if they travel to Ireland or the enlarged EU. O’Reilly, the CEO of O’Reillys Wholesale, highlights the difficulties presented by this arrangement, as some of his suppliers opt for the green lane, limiting his ability to sell products in Southern Ireland.

Furthermore, O’Reilly expresses frustration that some of his suppliers are not adequately prepared for the new rules, affecting the continuity of his supply chain. He explains that certain brands may suspend deliveries for a few weeks while they adjust to the changes. The implementation of these rules is part of the Windsor framework agreed upon by the UK and EU in February, aiming to resolve contentious issues stemming from Brexit.

Despite the UK Prime Minister Rishi Sunak’s assertion that the deal would eliminate any borders in the Irish Sea, businesses still face paperwork requirements, albeit significantly reduced, to join a trusted merchant program for access to the green lane. The unique access granted to Northern Ireland to both the EU and UK markets under the agreement has sparked opposition from the Democratic Unionist Party (DUP), resulting in the breakdown of the region’s executive at Stormont. Both London and Brussels have made it clear that they will not renegotiate the Windsor framework to address DUP concerns.

In response to the DUP’s demands, Sir Jeffrey Donaldson, the party’s leader, calls for greater flexibility in the operation of the red and green lanes. He emphasizes the need to protect Northern Ireland’s position in the UK. On the other hand, Chris Heaton-Harris, the UK’s Secretary for Northern Ireland, asserts that the government is engaging in constructive talks with the DUP to address their concerns.

The new framework rules will be gradually implemented, with the red and green lane system expanding from food and drink to encompass all other goods and parcels by October 2024. It is anticipated that many suppliers and manufacturers will eventually opt for the red lane, despite the additional paperwork, in order to maintain the possibility of selling into the EU market in the future. Peter Hardwick, a trade policy advisor at the British Meat Processors Association, acknowledges that some members have already communicated their intention to opt for the red lane.

Carol Lynch, head of customs services and international trade at consultancy BDO Ireland, suggests that the red lane will be utilized by those seeking to use Northern Ireland as a gateway to Europe. This strategic choice aligns with Northern Ireland’s desire for continuous access to both the UK and EU markets.

Critics of the agreement contend that, despite prior hopes for the UK to change its approach, the implementation of the new rules confirms that this will not happen. Stephen Kelly, head of the Manufacturing NI trade group, emphasizes the significance of the red and green lanes in facilitating unrestricted trade with Britain, a key demand of the DUP. However, he points out that the new system remains complex and will take time to stabilize.

The upcoming changes present challenges for businesses in Northern Ireland. Nichola Mallon, the former infrastructure minister of Northern Ireland who now leads trade and devolved policy at trade body Logistics UK, states that the new system will involve a significant learning process and highlights the need for businesses to adapt over the course of the next year.

While some businesses feel adequately prepared for the changes, others remain cautious. Roger Pollen, the head of the Small Business Federation of Northern Ireland, notes that readiness does not necessarily equate to complete readiness. On the other hand, Peter Hardwick of the British Meat Processors Association expresses doubt about the effectiveness of the new system, pointing to the increased costs associated with “not for the EU” labels that will be mandated for goods remaining in Northern Ireland.

Shane Brennan, representing the UK’s Cold Chain Federation, raises concerns about the complications faced by trucks carrying mixed loads of products due to the border arrangements. He emphasizes that the Windsor Framework does not resolve the underlying problems of the Northern Ireland Protocol for Integrated Supply Chains.

In conclusion, the new post-Brexit trade rules between Great Britain and Northern Ireland have created challenges for wholesalers and businesses in the region. The implementation of the red and green lane system aims to facilitate trade while maintaining access to both the UK and EU markets. However, the complex nature of the new rules and the need for businesses to adapt poses significant hurdles. As Northern Ireland seeks to navigate this transition, it is clear that further adjustments and discussions will be necessary to ensure smooth trade relations.

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New post-Brexit rules for trade between Great Britain and Northern Ireland will begin to come into force this weekend, but for wholesaler Derek O’Reilly they are already a headache.

Under the rules, which come into force from Sunday, food and drink suppliers will use a “green” lane with less paperwork for incoming goods northern Ireland from Great Britain who remain in the region, and a “red” lane, with more checks, if they travel to Ireland or the enlarged EU.

“Some [of my suppliers] they are going down the green lane, which makes life more difficult and limits me to selling the product in Southern Ireland, which is not ideal,” said O’Reilly, chief executive of O’Reillys Wholesale, a Northern Ireland-based distributor of brands including Walkers crisps, Quaker oats and Cadbury chocolate.

O’Reilly added that some of its suppliers are not ready for the new rules and have “their heads in the sand”; a brand may suspend some of its deliveries for a few weeks while it prepares. “Other companies are in a similar situation,” he told her.

The new system is part of the Windsor framework agreed by the UK and EU in February to resolve years of bitter disputes over Brexit.

When he announced the deal, British Prime Minister Rishi Sunak said it would remove “any sense of border in the Irish Sea”. But companies still face some paperwork, albeit heavily reduced, if they join a trusted merchant program that gives them access to the green lane.

The deal gives Northern Ireland unique access to both EU and UK markets, but opposition from the Democratic Unionist party, the largest pro-UK political group, brought down the executive of the region at Stormont. London and Brussels have made it clear they will not renegotiate the Windsor framework to allay DUP concerns.

Writing in the Belfast News Letter, a unionist newspaper, on Saturday, DUP leader Sir Jeffrey Donaldson said his party would not be “bullied or cajoled”.

He called for “greater flexibility” in the operation of the red and green lanes and said that “a path to fully functioning institutions at Stormont will only emerge if Northern Ireland’s position in the UK is protected”. . . United Kingdom law”.

“We have not come to this point to accept deals that fall short of what the prime minister promised to deliver,” he wrote. “This is the time to hold your nerve.”

In the same paper, Chris Heaton-Harris, the UK’s secretary for Northern Ireland, wrote that the government was “in the final stages” of constructive talks with the DUP. “We are putting together a comprehensive package of proposals that we hope will address their concerns,” he said.

Windsor’s new framework rules will be implemented gradually with the extension of the red and green lane system from food and drink to all other goods and parcels in October 2024.

It is expected that many suppliers and manufacturers will eventually opt for the red lane, despite the more onerous paperwork required, to keep the possibility of selling into the EU open in the future.

Peter Hardwick, trade policy adviser at the British Meat Processors Association, said some of its members “are reporting. . . [they] will opt for the red lane.”

Carol Lynch, head of customs services and international trade at consultancy BDO Ireland, said anyone seeking to use Northern Ireland as a “gateway to Europe” would use the red lane. “This will be an important part of the future as Northern Ireland positions itself to have dual access to both the UK and EU markets,” she added.

For some critics of the agreement, “up until that moment, perhaps there was hope that the United Kingdom would change its approach. From this weekend it is clear that this will not happen,” said Stephen Kelly, head of the Manufacturing NI trade group.

The red and green lanes simplify the problem of ensuring the region has “unrestricted” trade with Britain, a key DUP demand, but the new system remains complex and will take time to stabilize.

Nichola Mallon, Northern Ireland’s former infrastructure minister and now head of trade and devolved policy at trade body Logistics UK, said the new system would be “a huge learning process” with “a year before the next series of changes.”

“Businesses are as ready as they can be,” said Roger Pollen, head of the Small Business Federation of Northern Ireland. “That doesn’t necessarily mean they’re completely ready.”

But others remained pessimistic. “I still think it’s a monster,” the BPMA’s Hardwick said, stressing that new “not for the EU” labels on goods remaining in Northern Ireland would raise costs for suppliers, farmers or consumers.

Shane Brennan, of the UK’s Cold Chain Federation, which represents hauliers of temperature-sensitive products, said the border still presents challenges for trucks carrying mixed loads of products.

“What is clear is that the Windsor Framework does not change the fundamental dysfunction of the Northern Ireland Protocol for Integrated Supply Chains,” he said.

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