UK internal market law - key to Stormont return - facing scrutiny in Scotland and Wales

The act is a key part of what the government sees as the solution to the problems created by the NI protocol – and the DUP want to see it strengthened. It is understood to be a key part of negotiations with the government to restore Stormont.

Yesterday, a report by a Scottish parliament committee said that “much higher levels of regulatory divergence are now a possibility” within Great Britain. SNP MSP Claire Adamson who chairs the committee said the complexities of the trading arrangements post-Brexit were “daunting” – and there needs to be clarity over how the UK internal market works in Scotland.

Under the Windsor Framework, EU goods aren’t checked entering Northern Ireland – and can travel into Great Britain without further checks under the internal market act.

However, the Welsh government has told the News Letter that EU goods should only enter Wales according to its rules.

The Labour-run administration – which previously failed in a legal bid against the internal market act – said: “the principles and requirements of the UKIMA do not apply and EU/Non-UK origin goods should only enter Wales according to our regulatory regime.”

While the Welsh government can legislate to stop non-UK products being sold in shops, it will not be able to – or want to – introduce border checks with the rest of the UK. Anything that comes into Wales from another part of the UK doesn’t have to comply with Welsh law if it falls within the scope of the UK Internal Market Act, unless it is specifically excluded. A Senedd (Welsh Parliament) report says that while the IMA does not affect its ability to pass laws – it does impact on the practical effect of those laws once they are in force.

DUP MP Sammy Wilson has accused the Scottish and Welsh governments of wanting to make their own regulations and fragment the UK market – and said the IMA was an attempt to deal with that. However, he says that Northern Ireland is also exposed to EU goods under current trading arrangements.

Mr Wilson added that – leaving aside the GB market – the government has “abandoned” people in Northern Ireland. He said: “We have been abandoned because the government has said there will be no checks coming into Northern Ireland – EU goods can come freely into NI. The danger is of course that if dangerous goods do come in, or goods that are likely to affect people or animal health – they will then try to stop them as they leave Northern Ireland” – arguing this would create more barriers in the Irish Sea.

A Government spokesperson said: “The UK Internal Market Act 2020 is the law across the whole of the United Kingdom including Wales. It ensures ongoing, guaranteed legal protection for NI goods to access the entire UK internal market.”

In December, Sir Jeffrey Donaldson has asked the Prime Minister to “bring forward legislation to amend the UK Internal Market Act – and both guarantee and future-proof Northern Ireland’s unfettered access to the UK’s internal market in all scenarios”.