Re: Jonathan Jones Gone
Originally Posted by
shropshiregirl
->
Yes, I do understand that Bread, the Irish Protocol is very important, so could someone then please explain to me what 'practicalities' are there that are still being negotiated if it is all signed and sealed? (s'ok, got my candyfloss head on tonight)
Okay, here comes.
Protocol on Ireland/Northern Ireland
The Protocol on Ireland/Northern Ireland set out a range of tasks for the WA. They broadly
fit into three categories:
• firstly, decisions that should be taken by the end of the transition period (if possible);
• secondly, decisions that would ideally be decided by the end of the transition period
as they might allow Northern Ireland to take advantage of exemptions from customs
duties or EU state aid rules and give businesses and individuals time to prepare for
their implementation; and
• thirdly, ongoing tasks to ensure the Protocol is working as intended.
Decision to be taken before the end of the transition period
• To ensure the correct application of customs duties, the Joint Committee needs to
decide the following: the conditions under which a good brought into Northern
Ireland from outside the EU is considered not to be subject to commercial
processing (taking into account the nature, scale and result of the processing); and
the criteria for determining whether a good brought into NI from outside the EU is
not at risk of being subsequently moved into the EU (Article 5(2) NIP). The Protocol
says this decision should be made “before the end of the transition period”.
A decision could be made after this time. However, it would mean that in the
interim all goods coming into Northern Ireland would default to being considered at
risk, and would be subject to the customs duties agreed to in the EU/UK trade
agreement, or if there is no agreement, to the EU’s Most Favoured Nation tariff
schedule (often known as ‘WTO terms’).
Decisions that ideally would be made by the of the transition period:
• The Joint Committee can take a decision to establish the conditions under which
certain fishery and aquaculture products brought into the EU’s customs territory by
UK-flagged ships registered in Northern Ireland are to be exempt from customs
duties (Article 5(3) NIP). If no decision is made then they will be treated as if they
originated from Great Britain (the rest of the UK), and potentially subject to customs
duties (tariffs).
• The Joint Committee should decide on the initial level of subsidy the UK can make
to support agricultural production in Northern Ireland (Article 10(2) and Annex 6
NIP). If it does not make an initial decision by the end of the transition period, then
the agricultural subsidies could become subject to the EU’s state aid regime. Further
decisions will potentially need to be taken to adjust to changes in the EU’s
Multiannual Financial Framework (MFF). If these decisions are not made within one
year of a new MFF being agreed, then again the subsidies could be subject to the
state aid regime.
• The Joint Committee is tasked with determining the practical arrangements by
which EU representatives may “be present” during, and access information relating
to, the UK’s implementation of the NIP (Article 12(3) NIP). There is no deadline given
for this decision, but it might make relations between the two sides more difficult if
this is not resolved by the end of the transition period.
Ongoing Joint Committee tasks:
Ongoing tasks for the Joint Committee relating to the NIP following the end of the
transition period are as follows:
• The Joint Committee is to keep under constant review the UK/EU’s “best
endeavours” to facilitate trade between Northern Ireland and the rest of the UK,
and make recommendations with a view to avoiding controls at ports/airports in
Northern Ireland to the extent possible (Article 6 NIP).
• The Joint Committee is to “regularly discuss” the implementation of EU VAT and
excise rules in Northern Ireland and adopt measures for their proper application as
necessary (Article 8 NIP).
• The Joint Committee is to keep under constant review the extent to which the
application of the NIP maintains the necessary conditions for North-South
cooperation, with a power to make appropriate recommendations to the EU and
the UK (Article 11 NIP).
• The Joint Committee is to determine whether new EU acts adopted after transition
which are within the scope of the NIP (and do not amend or replace acts already
listed in the Annexes to the Protocol) should be included in the relevant Annex
(Article 13(4) NIP).
• The Joint Committee will hold consultations with the aim of finding a solution
where the UK or EU is considering taking unilateral safeguard measures to address
“serious economic, societal or environmental difficulties” arising under the Protocol
(Article 16 and Annex 7 NIP).
The Joint Committee would also have a role in in making recommendations in the event
that the Northern Ireland Assembly decides to withhold consent to the continued
application of Articles 5-19 of the NIP (Article 18 NIP). This task is not yet applicable as the
earliest the Northern Ireland Assembly could withhold consent is 1 January 2025.
UK Government Command Paper
In May 2020 the UK Government published a Command Paper (CP) that set out its
approach to implementing the Northern Ireland Protocol.
The parts of the CP that are most relevant to the Joint Committee tasks are as follows:
• ‘At risk goods’: The UK Government in the CP argues that “internal UK trade” has
no impact on the EU market and does not pose a risk to that market. The CP says
that “this principle needs to be formalised with the EU within the Withdrawal
Agreement Joint Committee”.
The CP goes on to state that “tariffs should only be charged if goods are destined
for Ireland or the EU Single Market more broadly, or if there is a genuine and
substantial risk of them ending up there” [our emphasis].
The CP also states that the Government will “make full use of the provisions in the
Protocol giving us the powers to waive and/or reimburse tariffs on goods moving
from Great Britain to Northern Ireland, even where they are classified as ‘at risk’ of
entering the EU market”. This position could potentially become a substantial
financial commitment by the Government if the Joint Committee cannot come to a
decision for some time after the transition period ends.
• Fisheries: The CP describes the decision on duties for fish and aquaculture products
as a “technical exercise” and that the Government is “determined to ensure that
fishers from Northern Ireland are not placed at any disadvantage either through
customs duties or associated barriers”.
• Agricultural subsidies: The CP states that the Joint Committee decision on the
maximum ceiling of agricultural subsidies “should maintain the current allocation for
supporting the agriculture and fishing industries in Northern Ireland, whilst also
providing suitable flexibility to respond to any market uncertainty and disruption”.
• EU oversight: The CP states that the UK Government is ready to discuss practical
working arrangements, “which are proportionate and strictly limited to what is
required to ensure the proper functioning of the Protocol”, and that it will not
accept “any return to the concept of joint controls”. The CP states that the UK
Government will not agree to a permanent EU presence in Northern Ireland as it
would be” divisive in political and community terms”. For more detail on discussions
between the UK and the EU on this matter see the table in the next section.
• Other decisions: Beyond the decisions explicitly mentioned in the Protocol, the CP
proposes some other decisions it hopes the the Joint Committee could make that
would help make trade easier between Great Britain and Northern Ireland after the
transition period ends:
─ Export and exit summary declarations: The CP states that in the
Government’s view it “makes no sense” for businesses in Northern Ireland to
complete export or exit summary declarations (these are customs forms) –
when they send goods to the rest of the UK, as they will not be entering the
EU’s Single Market, and will be subject to other checks en route to their
destination. These forms are required under the EU’s Customs Code, which
the Protocol states applies to Northern Ireland (Article 5(3) NIP). As this is a
piece of EU law, it seems that it would be for the EU to decide if such a waiver
could be made. While the UK could request such a waiver, it may not be
something the Joint Committee can decide. Rather it would be a decision of
the EU subject to its own internal procedures, if it was minded to make such a
change.
─ Agri-food checks: The UK Government acknowledges in the CP that some
checks on agri-food moving from Great Britain to Northern Ireland will be
required. It goes on to say that the process and frequency of checks required
will need to be discussed with the EU in the Joint Committee “within the
context of the provision in the Protocol that both parties must use their ‘best
endeavours’ to avoid controls at Northern Ireland ports as far as possible”.
Article 6 (2) NIP) does state that the two sides “shall use their best endeavours
to facilitate the trade between Northern Ireland and other parts of the United
Kingdom, in accordance with applicable legislation and taking into account
their respective regulatory regimes as well as the implementation thereof”.
The EU’s laws on checks on agri-food are contained in Annex 2 of the
Protocol and will apply to Northern Ireland. Therefore, it again seems likely
that the EU would need to decide if it would consider changing the
application and/or interpretation of these laws in order to avoid checks.