By Roger Pollen, Head of FSB Northern Ireland
Whilst the spotlight may be focussed elsewhere, work continues to deliver smoother operation of the Windsor Framework. Businesses want to maximise opportunities, but much remains to be done if the benefits of ‘dual market access’ are to be delivered.
In theory, dual market access allows NI businesses to trade goods freely within both the UK Internal Market and the EU Single Market. This unique status should provide businesses here with a competitive advantage, accessing half a billion consumers without the trade barriers faced by counterparts in GB or, indeed, the EU. But since the Windsor Framework was unveiled huge swathes of new or amended EU regulations have come into force here.
When the UK was an EU member we had early sight of emerging regulations and applied real scrutiny. Now, only the most cursory, retrospective consideration occurs, and experience tells us that light-touch, ill-informed regulatory scrutiny can lead to numerous unintended consequences. That’s why FSB is renewing calls for Government to establish a special unit to have early sight of proposed regulatory changes in markets where the UK has major trading links, to allow for adequate horizon-scanning, consultation, and mitigation before adoption.
When a key House of Lords Sub-Committee established an inquiry into ‘Regulatory divergence and the Windsor Framework’ FSB called on Government to consider resourcing the newly established Office of the Internal Market to do the role; we echoed the call in recent submissions to Westminster’s NI Affairs Committee and Stormont’s Windsor Framework Democratic Scrutiny Committee.
The need arises from regulatory divergence, so Government must step up and provide the capacity to ensure businesses understand the landscape and maximise opportunities afforded by dual-market access; doing so could cement Northern Ireland’s position as a gateway for trade.
Divergence will be a continual process, so understanding it cannot be left to under-resourced departments and groups - a key example being the impending deadline on veterinary medicines. If the UK and EU reach agreement, a much closer trading relationship may emerge that addresses some of the many issues; failure, however, will produce a plethora of challenging regulatory divergences. Industry will need a well-resourced unit that can anticipate, understand and advise on the implications to facilitate compliance and maximise the benefits of dual-market access. As always, knowledge will be power.