New Trade Regulations Prompt Some Businesses to Suspend Sales to Northern Ireland

New regulations impacting businesses in Great Britain that sell to Northern Ireland and the EU are considered a “step backwards” by a London-based small business owner. The EU’s General Product Safety Regulation (GPSR) introduces fresh requirements for Great Britain businesses, including the mandate to have an agent located in Northern Ireland or the EU. This development has led some businesses to cease or temporarily halt their sales to Northern Ireland and the EU. The government stated it has been assisting small and medium-sized businesses across the UK in preparing for GPSR. However, Johanna Haughey-Lewis, owner of the homewares company Weirdstock, commented that “there hasn’t been enough time or enough information in order to get this right”. The alteration in rules applies to products from Great Britain destined for Northern Ireland because Northern Ireland’s Brexit agreement effectively keeps it within the EU’s single market for goods. Weirdstock, which specializes in bedding, is among the companies that have chosen to pause shipping to the EU and Northern Ireland. Ms Haughey-Lewis, originally from County Armagh, revealed she learned about the new rules “through a social media post a couple of weeks ago”. She told BBC Radio Ulster’s Good Morning Ulster programme, “Whenever you look at the government website, the information on GPSR only came up there very recently, so not enough time for businesses to prepare.” She further noted, “Even some of the bigger retail stockists that I am with have only communicated about this for the first time this week, a few days before the deadline.” She concluded, “So it’s not just the small businesses that aren’t aware of it; there has been no kind of campaign or information about it.” Ms Haughey-Lewis informed her customers about the changes on social media. She wrote, “As many of you know I am from Northern Ireland, Weirdstock has a wee customer base there so I am finding this particularly frustrating. But at the same time I am determined to find a solution.” She mentioned that her connection to Northern Ireland might potentially facilitate finding an agent, but other obstacles remain. The new stipulations include the necessity to provide documentation demonstrating product safety. Ms Haughey-Lewis stated, “There is no template for that, no guidance. It is very hard to find information on that.” She added, “This new legislation which feels like it has come out of nowhere, a bit of a surprise to me, it really has felt like a step backwards”. She expressed optimism that her textile supplier in India’s certification by global sustainability bodies would ensure the presence of safety and traceability evidence, but she is currently uncertain about the exact requirements. She further remarked, “Hopefully I will be in a better position than other people because I have those certifications already.” Sammy Wilson, a Democratic Unionist Party (DUP) MP, asserted that the UK government and local politicians had “abandoned many traders” who, he claimed, are now “affected by mad EU trade rules”. Wilson informed the BBC’s Good Morning Ulster programme that he had written to the government in September to caution them about these issues, but “nothing has been done”. Alliance Party assembly member Kate Nicholl identified “clear issues with communication and how the government have been engaging with those businesses”. She characterized Brexit as a “disaster” for Northern Ireland, but warned that removing the current trade regulations under the Windsor Framework would inflict “even more damage and uncertainty for businesses in Northern Ireland”. She concluded, “We just have to try to find solutions of how we can make this as easy as possible.” The EU has been developing GPSR since 2020, and it received approval from the European Parliament in May 2023. It updates existing rules to reflect the expansion of online commerce and aims to offer enhanced protections for consumers. This includes the requirement for a “responsible person,” effectively a compliance agent, to be located within the EU or Northern Ireland. This presents a specific challenge for small businesses in Great Britain that sell directly to consumers, as they typically lack a physical presence in the EU or Northern Ireland. The Federation of Small Businesses (FSB) is urging the government to provide improved export support to companies. Tina McKenzie, policy chair at the FSB, commented, “GPSR will be a real barrier to international trade for some of our small firms looking to export to EU member states, but also move goods to Northern Ireland.” She added, “While the UK government’s newly published guidance is helpful, small firms are still faced with the complexity and associated costs around it.” McKenzie further suggested, “Governments from both sides should look at removing unnecessary trade barriers, not least those arising from the product safety rules, for small businesses in the UK-EU Trade and Cooperative Agreement review in 2026.” It is understood that the government anticipates GPSR will have a limited impact on the UK internal market, as it largely formalizes the existing operational practices of many businesses. Copyright 2024 BBC. All rights reserved. The BBC is not responsible for the content of external sites. Information regarding our approach to external linking is available.