With so many big global stories dominating the news headlines, sometimes it`s easy to forget the many issues affecting businesses in Northern Ireland. Significant work continues behind the scenes to ensure smoother operation of the Windsor Framework. Businesses across Northern Ireland are eager to maximise opportunities, but much remains to be done if we are to secure the benefits of 'dual market access.'
In principle, dual market access is a significant asset for Northern Ireland businesses, allowing them to trade goods seamlessly within both the UK Internal Market and EU Single Market, reaching a vast consumer base of half a billion people. Unlike their counterparts in Great Britain or even the EU, Northern Ireland businesses are positioned to benefit from reduced trade barriers. However, since the Windsor Framework was introduced, many new or revised EU regulations have come into force in Northern Ireland, posing challenges for businesses.
When the UK was an EU member, policymakers had early visibility of impending regulations, allowing for careful scrutiny, understanding and adaptation. Now, however, the vast majority receive only retrospective and often superficial review. Experience shows that this light-touch approach can lead to unintended consequences, creating further uncertainty for businesses, which is why the Federation of Small Businesses is calling for the UK Government to establish a dedicated unit to provide early insight into proposed regulatory changes in key trading markets, enabling effective horizon-scanning, consultation, and mitigation efforts before new rules are adopted.
Last week, FSB met with Ciara Ferguson MLA, the new chair of Stormont's Windsor Framework Democratic Scrutiny Committee, and deputy chair David Brooks MLA, in a valuable engagement to discuss potential solutions to regulatory challenges.
FSB has also been sharing concerns about the nature of regulatory scrutiny with key figures in Westminster. The Northern Ireland Affairs Committee is currently conducting an inquiry into the Windsor Framework’s operation, while the newly established House of Lords Northern Ireland Scrutiny Committee aims to clarify how the Framework affects businesses and the public, and will also examine its broader impact on Northern Ireland’s economy. FSB remains committed to making representations to political representatives and relevant committees to ensure policymakers are well-informed.
When the House of Lords Sub-Committee launched an inquiry in 2023 into ‘Regulatory Divergence and the Windsor Framework,’ FSB urged the UK Government to resource the Office of the Internal Market (OIM) to take on this scrutiny role. This message was reiterated in recent submissions to Westminster’s Northern Ireland Affairs Committee and in discussions with Stormont’s Windsor Framework Democratic Scrutiny Committee. Regulatory divergence is an ongoing challenge; as regulations evolve, businesses need timely guidance to navigate the landscape. FSB continues to call on the UK Government to step up to ensure businesses fully understand and capitalise on dual-market access. If properly managed, Northern Ireland could become a vital trade gateway between the UK and the EU.
One imminent challenge is the looming deadline on veterinary medicines. If the UK and EU reach an agreement, a closer trading relationship may emerge that alleviates concerns; however, failure to do so will create further regulatory divergence, adding complexity to trade. In such a case, a well-resourced unit mapping the differences is even more critical.
Policymakers must recognise that divergence is not a temporary hurdle but an ongoing reality. Relying on under-resourced government departments is not sufficient. Businesses need a proactive, well-equipped body to anticipate regulatory shifts, interpret implications, and provide timely advice. This will enable businesses to take full advantage of Northern Ireland’s unique trading position rather than being held back by uncertainty.
As the Windsor Framework evolves, knowledge and preparedness will be key. Ensuring businesses have early access to accurate regulatory information will allow them to make informed decisions, mitigate risks, and maximise opportunities. FSB remains committed to advocating for these measures, working with policymakers to help businesses in Northern Ireland thrive in this complex yet potentially advantageous trading environment.