Business First September 2017 Business First September 2017 | Page 25

he UK’s withdrawal from the European
Union has thrown up unquestionably
complex challenges for policy makers
and constitutional experts alike. None more
so than resolving future arrangements for the
Irish border.
That was precisely the unenviable
challenge faced by the Government in recent
weeks when it published a position paper on
the specific Northern Ireland – Republic of
Ireland dimension to Brexit.
T
So what did the paper say and how
will it affect businesses in all parts
of the all­island single market?
The first thing to recognise is that the paper
is a step in the right direction. While it’s
unlikely to silence any critics, progress has
been made, even if we do remain some
distance from our final destination.
That the border issue is being addressed so
early in the negotiation process shows just
how significant a priority this is for both the
UK Government and the European
Commission.
It also shows the impact the issue could
have on wider discussions about a future
UK/EU trading relationship.
There are some positive steps
Starting with the positives, businesses
across Northern Ireland will welcome the UK
Government’s recognition of the unique
position we face as the only part of the UK
that shares a land border with the EU.
They will also welcome the commitment to
upholding the principles of the Belfast (‘Good
Friday’) Agreement which not only laid the
foundations of political stability in the region
but created a vital platform for economic
prosperity.
Maintaining the Common Travel Area
(CTA) and associated rights, a commitment to
avoiding a hard border for the movement of
goods and aiming to preserve North­South
and East­West cooperation, including on
energy, are all hugely welcome.
The importance of the CTA in particular
cannot be understated – ensuring that
Some politicians and others have
suggested that technology will have
a major role to play in any new
customs and border arrangements
however we cannot rely on
technology alone.
families and communities can move freely
across the border is vitally important to how
people go about their daily lives and
companies manage their operations.
Is the devil in the detail?
While these measures all represent a move
in the right direction, the devil may well be in
the detail and businesses will need further
clarity before they can fully get behind the
proposals.
The avoidance of a hard border for goods
remains a particular challenge. With current
proposals too vague, businesses may
continue to hold back on making crucial
decisions about investment and business
strategy until this is further resolved.
What will cause further concern for
business is the feasibility of newly proposed
customs models and their ability to meet the
ambitious criteria set out in the
Government’s position paper.
Looking at existing arrangements, only the
UK’s continued membership of a Customs
Union can simultaneously avoid the need for
physical border infrastructure between both
the Republic of Ireland and Northern Ireland,
and between Great Britain and Northern
Ireland.
Anything else takes us down the route of a
new and unprecedented customs
arrangement. New and innovative solutions
are clearly needed however we know these
can also come with the kind of uncertainty
that businesses on both sides of the border
are keen to avoid.
Some approaches currently being
considered, such as customs exemptions for
smaller firms, ‘trusted traders’ schemes for
larger businesses and equivalence
agreements to resolve Sanitary and
Phytosanitary measures, all have their pros
and cons, with further detail needed to
determine whether they could work in
practice.
Some politicians and others have suggested
that technology will have a major role to play
in any new customs and border
arrangements however we cannot rely on
technology alone.
Looking for a flexible and
constructive approach
Additionally the paper places significant
emphasis on the EU to adopt a flexible and
constructive approach. While we know that
there is considerable recognition on both
sides of the table of the specific economic,
political and cultural issues, we also know
that negotiations will be tough and
concessions hard to come by.
With businesses keen to see swift progress
on these issues, the red lines and
brinksmanship common in any negotiation
could have the potential to cause further
unwelcome uncertainty.
While it would have been unrealistic to
assume that the UK Government’s paper
would deliver the clear and detailed solutions
business and others need, it has at least
advanced the discussion considerably.
In the absence of a functioning Executive at
Stormont, huge responsibility has fallen once
more on business to bring clarity of thought
and genuine expertise to the debate.
Businesses of all sizes and from all sectors
will now take time to reflect on the position
papers in the knowledge that each proposal
has the potential to significantly alter
political, economic and cultural life for all
Northern Irish citizens.
Contemplation will not be taken lightly,
indeed the insights that business provide
could well be the ones that help broker the
best possible outcome for all.
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