On 29 April, I will be meeting with the European Commissioner for Trade and Economic Security, Maroš Šefčovič for this Government’s first meeting of the Withdrawal Agreement Joint Committee. As part of this important meeting, the UK and the EU will take decisions to support our commitment to the Windsor framework.
We are moving to implement the next phase of the UK internal market system. This phase will deliver simplified processes for freight and parcels arrangements between Great Britain and Northern Ireland, and reflects the substantial work undertaken on the delivery of those commitments to date. We will continue to implement the UK internal market system in good faith in line with the commitments set out in “Safeguarding the Union”.
These changes will replace the burdensome requirements in the old protocol for international customs paperwork with internal market movement information—a much shorter, simpler dataset containing ordinary commercial information. They will further simplify processes for businesses and have been taken forward following considerable engagement with sector stakeholders to ensure full readiness for the new arrangements and, subject to the relevant procedures, will take effect from 1 May 2025. I will make a declaration for the UK at the meeting and expect that my EU counterpart will make a corresponding declaration.
The Government are pleased to be bringing these arrangements into effect, which demonstrate our commitment to the UK internal market and breaking down barriers to trade for businesses and traders. The effect of these new, beneficial arrangements for freight and parcels will continue to be monitored by the Independent Monitoring Panel on the Windsor Framework, whose first six-month reporting period will conclude on 30 June 2025. Marking this progress will be part of a productive Withdrawal Agreement Joint Committee meeting, reflecting the closer, more co-operative relationship that the UK now has with the EU.
At that meeting, the Government will also agree specifically to three decisions that will add four Acts to the Windsor framework. This Government are committed to tackling barriers to trade for businesses across the UK. Northern Ireland obviously has a special trading relationship with the EU under the Windsor framework and it is therefore only right that the Government review all elements of Northern Ireland’s regulatory arrangements to ensure it can make the most of its unique dual market-access.
In accordance with paragraph 18(3) of schedule 6B to the Northern Ireland Act 1998, I am setting out in this statement why I am of the opinion that the conditions are met for these particular measures to be agreed on the basis that none of those Acts would create a new regulatory border between Great Britain and Northern Ireland. The condition in paragraph 18(2)(b) of that schedule is therefore met.
Ukraine/Moldova tariff liberalisation—Regulations 2024/1392 and 2024/1501
These regulations will not create a new regulatory border. This is because the EU regulations reduce the EU tariff on goods coming from Ukraine and Moldova and because of the low volume of relevant trade flows. We expect that no goods moving to Northern Ireland will incur additional financial cost. These regulations follow on from similar previous measures which were added to the framework in 2023.
Critical Raw Materials—Regulation 2024/1252
This regulation will not create a new regulatory border. This is based on the fact that most affected products in Northern Ireland are likely to be traded on a pan-European basis. As such, manufacturers and traders are unlikely to face additional barriers to placing products on the Northern Ireland market or an incentive to cease doing so.
The objectives of the regulation are broadly in line with those of the Government. This is with regard to both the UK’s upcoming critical minerals strategy aimed at securing stable supplies of critical raw materials, and the forthcoming circular economy strategy. This regulation would not create a new regulatory border as it would not lead to a material diversion of trade or materially impair the free flow of goods.
In order to provide additional confidence that manufacturers and traders will not face new regulatory barriers to placing goods on the Northern Ireland market, the Government commit to taking any necessary steps to protect the UK’s internal market, including considering equivalent measures in Great Britain where necessary.
This regulation will not create a new regulatory border. The regulation concerns geographical indications, which are intellectual property rights to indicate that a product has a specific geographical origin and possesses a certain quality or reputation due to that origin. The UK already enforces strong trade mark and consumer protection laws and GIs are another way of protecting products against infringement.
The Government have considered carefully the views expressed by Members of the Northern Ireland Assembly last March. Since that point, the Government have undertaken extensive assessment of the regulation, including detailed technical exchanges with the European Commission and conversations with stakeholders. They have also considered the relevant equivalent protections in Great Britain. This has been with the clear aim of understanding the impacts which would arise from its application in Northern Ireland and the points made by Assembly Members.
From that work, it is clear to me that the regulation would not materially impair the free flow of goods or divert trade between Great Britain and Northern Ireland, and that it could indeed offer new opportunities. The regulation would only affect a small number of businesses due to the specific nature of the products. Additionally, even where companies are selling such products, only minimal adjustments are likely required, such as updating packaging or marketing materials. Companies that are selling genuine products, as registered and protected, will not need to make any adjustments. Where businesses are using protected names when selling a product that does not meet the GI specification, they might be able to use exemptions (such as continued use of the product name if the product is already covered by a UK trade mark) or apply for transition periods of up to 15 years, as applicable, to change marketing materials. And many of these businesses will already trade with the EU market and make those adjustments regardless.
Businesses in Northern Ireland may also benefit by accessing this alternative way of protecting their products, as GIs may allow them to charge higher prices or improve sales. Agrifood products can already benefit from GIs and businesses have hugely valued the protection of products such as Irish whiskey.
I understand that for those who took part in the original debate in the Assembly, as well as others, concerns may still remain about the potential impact of this regulation. The Government will take any steps necessary for the protection of the UK’s internal market and are also committing to reviewing the GB domestic regime in respect of non-agricultural geographical indications in light of this decision.
Next steps
The Government will shortly lay explanatory memorandums before Parliament pertaining to each of the three decisions that we will make. These will set out in further detail the Government’s view on any impacts that the above mentioned regulations would have on Northern Ireland, as well as additional evidence I considered when reaching my conclusion that none of them would lead to a new regulatory border.
While the Government note that the EU has recently issued proposals to add regulations 2024/1689 (on artificial intelligence) and 2024/2847 (on cyber resilience), we are clear that both regulations are complex and will require further dialogue and consideration as to their interaction with the framework. At this Joint Committee, the Government will ask the EU to hold an exchange of views on these two files within six weeks. Therefore, at present no decision has been made and therefore the regulations will not be added to the Windsor framework at this Joint Committee meeting. I also note that Members of both Houses and the Northern Ireland Assembly have expressed interest in these issues in light of our domestic strategy and that they too will want to consider the issues when the Government have further clarity to share on them.
The Government are steadfastly committed to protecting the UK internal market and to implementing the Windsor framework. Our diligent approach to the Joint Committee, to assessing the potential impacts of these decisions, and to delivering the UK internal market system reflects the sincerity with which the Government treat those commitments. The full package of decisions and declarations for the Joint Committee are intended to achieve both of these objectives. Beyond these matters, the Government will continue to engage closely with stakeholders and the European Commission on a broad range of regulatory issues of mutual interest in line with the outcomes of the Joint Committee.
I can confirm that the Secretary of State for Northern Ireland is writing to the Speaker of the Assembly to update him on these next steps, alongside the specific forward-facing commitments that the Government are making in respect of domestic policy to avoid trade barriers in future. These commitments are sincere and further demonstrate our commitment to ensuring the smooth flow of trade across the United Kingdom in its territorial entirety. I will place a copy of the Secretary of State’s letter to the Assembly Speaker in the Library of the House for future reference.