British Chambers of Commerce 'acting like Northern Ireland does not exist' claims TUV as Protocol takes back seat to TCA in new report

The TUV leader lamented the lack of attention paid to the Protocol in the British Chambers of Commerce report, which documents difficulties faced by companies trading with the EU.

The focus of the report is the Trade and Co-Operation Agreement (TCA).

This is separate from the Protocol.

The TCA was agreed between the EU and UK in December 2020.

Among the things it involved were:

An agreement to largely have zero trade tariffs on goods going to-and-fro the EU and UK;

A pledge to keep joint UK / European crimefighting efforts going;

And an end to EU state aid rules for the UK (meaning the government could start subsidising businesses in ways that were previously barred by Brussels).

By contrast, the Protocol is part of the Withdrawal Agreement – a different deal struck almost a year earlier with the EU.

The function of the Protocol was to make sure there was no material land border on the island of Ireland – a problem it solved by keeping NI under a swathe of EU rules and placing the trade border in the Irish Sea instead.

‘BAD AS IT MAY GET IN GB, AT LEAST THEY CAN FREELY TRADE’:

The British Chambers of Commerce (BCC) is a hugely-powerful business lobby group representing scores of smaller local chambers across the UK.

Its 32-page report, published late last night, points to things like new tax bureaucracy and red tape for UK food exporters under the current post-Brexit arrangements.

In one segment it acknowledges that the Protocol has led to trade headaches between GB and NI, saying there has been “a re-ordering of supply and sourcing chains from some companies operating in NI, sourcing more strongly from ROI to avoid border friction East / West across the Irish Sea”.

But in general terms the lobby group has been at pains to stress it wants to see the EU and UK negotiate any changes to the Protocol, and that in the absence of that, there should be no “unilateral action” from the UK to undercut the Protocol.

Reflecting on the fact the Protocol takes a back seat in the report, Mr Allister said: “It is as if Northern Ireland doesn’t exist when it comes to the BCC.

"Any credible report would have dilated on the fact that this part of the UK is subject to the foreign jurisdiction of the EU single market for goods, customs code, and VAT regime, and the resulting negative impact on internal UK trade.

"Diversion of trade and intolerable barriers to internal UK trade because of the Protocol should be a major talking point across British business, but the BCC is focussed on insular GB concerns.

"However, difficult things might be in GB, at least they can freely trade, whereas here we are subject to foreign jurisdiction and laws and have our internal UK trade impeded by a border in the Irish Sea.”

The DUP MLA David Brooks said: “The fact there has been a recognition of trade diversion once again underscores that the Protocol has failed even under its own terms.

"It's time all of those who championed the Protocol finally acknowledged that it needs to be replaced with arrangements that can command support from both unionists and nationalists.

"This can not only help our businesses, but unlock the restoration of devolution here.”

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