Editorial: Lack of openness by government is the most distressing aspect of the whole Northern Ireland Protocol debacle

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Morning View
​News Letter Morning View on Thursday July 6 2023

The Economic and Social Research Institute (ESRI) in Dublin published an analysis this week, finding that cross-border trade with the Republic is now more important to our economy than their models said it should be.

Previously, because commerce here was so orientated toward the rest of the UK, it was less important than proximity and market size suggested. Absent in the coverage of this report, from other outlets, were the words “diversion of trade”. Though that is clearly what is happening, as companies prepare for the full implementation of the Westminster Framework by October.

This is barely discussed, but it is hugely important.

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The EU always said that its aim was for NI businesses to shift their supply chains from GB. However, “diversion of trade” was included in the NI Protocol as a justification for triggering “Article 16” - the “emergency brake” that either side could pull.

The government claims that the Windsor Framework fixed the protocol, and it congratulated itself on this again this week, at a UK-EU partnership meeting. Far from standing up to diversion of trade, though, it has accepted it, and implements plans that will make it worse.

For example, new rules for posting parcels were published recently that added GB-NI packages to regulations for “foreign postal packets”. The people or companies sending these parcels are to be treated as exporters and will have to pay duties, which are recoverable only after a complicated process.

This is another area where the situation will have deteriorated markedly from the status quo after the framework is implemented.

The most distressing aspect of the whole protocol debacle is perhaps the lack of openness and honesty with which people in NI have been treated by their own government and the EU.