Northern Ireland’s Sea Border Challenges Small Businesses Amidst Windsor Framework Vote

This week, the assembly is scheduled to vote on the continuation of Northern Ireland’s Brexit agreement, the Windsor Framework, for an additional four years. This framework essentially maintains Northern Ireland’s position within the EU’s single market for goods. Consequently, the movement of goods across the border with the Republic of Ireland, an EU member state, has not been affected by Brexit. Conversely, products entering Northern Ireland from other parts of the UK are subject to inspections and controls, a system referred to as the Irish Sea border. Michael and Lesley Cairnduff, proprietors of a pet food enterprise located in County Down, described the required documentation as “crucifying” for small businesses such as their own. At Larne Harbour, the sea border is visibly manifested by a new border control post currently under construction. Prior to Brexit, livestock from other UK regions underwent checks at this location; however, the new facility, constructed to EU specifications, is considerably larger. Since 2021, when the Northern Ireland Protocol, the initial iteration of the framework, started to be implemented, businesses have been navigating new checks and associated bureaucratic procedures. Many larger companies have largely absorbed these impacts, having invested in personnel and established systems to maintain the flow of goods from Great Britain. All major UK supermarkets continue to operate in Northern Ireland, with some even expanding. According to a chief executive of a prominent agrifood company, who spoke to the BBC, the sea border is now seldom a topic of internal business discussions. Nevertheless, for smaller enterprises with limited resources, the sea border continues to pose an unpredictable difficulty. The BBC initially interviewed Michael and Lesley Cairnduff at their pet food business in Newcastle, County Down, in 2021. At that point, they had experienced approximately four months of disruption, unable to receive supplies from Great Britain via standard commercial pallet shipments. Their supplier adjusted, allowing goods to resume flow. Mr Cairnduff stated, “We were lucky they were supportive,” adding, “They put all the necessary measures in place.” Despite this, managing sea border-related matters continues to be very time-consuming. He commented, “We’re just not getting the support from the system nor the politicians that was promised.” Ms Cairnduff further remarked, “Yesterday I spent two hours working on problems for a pallet coming in. I shouldn’t have to do that. We should be spending our time helping customers, not doing paperwork for pallets.” Initially, when the sea border commenced operations, there were dire forecasts of supply chain collapses. This outcome was averted, partly because the agreement as initially conceived was never fully put into practice. The EU ultimately acknowledged that the provisions for transporting food and medicines would be impractical and that Northern Ireland would need to align more closely with certain UK regulations. While the sea border did not lead to a collapse, it has also not generated a significant economic surge. The Windsor Framework grants Northern Ireland unique dual market access: manufacturers based in Northern Ireland benefit from superior access to the EU single market compared to companies in Great Britain, alongside maintaining complete access to the UK market. This specific arrangement prompted former Prime Minister Rishi Sunak to characterize Northern Ireland as possessing an “unbelievably special position” and being “the world’s most exciting economic zone.” The theoretical advantage is that any international manufacturer aiming to serve both the UK and EU markets would ideally establish operations in Northern Ireland. However, Kieran Donoghue, the chief executive of Invest NI, Northern Ireland’s inward investment agency, indicated that this has not yet materialized. Speaking at Stormont in October, he stated, “There is still a relatively low level of awareness of the opportunities presented by dual market access.” He added, “There will, in time, be foreign direct investment opportunities.” Stuart Anderson of the NI Chamber of Commerce emphasized the framework’s role in safeguarding supply chains that traverse the land border, especially within the highly integrated agrifood sector. He referenced Department of Economy projections from 2019, which had forecast “a material and sustained disruption” to these supply chains in the event of a no-deal Brexit. Anderson remarked, “Four years on, that’s not where we are. The framework has brought the certainty and stability to allow that free flow of trade.” He also noted, “Some of our members who are exporting to the Republic and further into Europe are taking advantage.” Last week, a senior executive from Brett Martin, one of Northern Ireland’s largest manufacturing exporters, informed Newstalk radio that the Windsor Framework had contributed to preserving access to EU markets. Robin Black, head of strategic development at the company, stated that it signified “in most regards nothing has changed for us as an exporter which is fantastic news, particularly with all our European markets.” Nevertheless, Mr Anderson indicated that although surveys among his members suggest that the majority now find the situation manageable, a “significant minority” report that the arrangements continue to present “an acute challenge.” The economic statistics for Northern Ireland do not always clearly reflect the impact of the sea border. Its effects are most evident in trade data, which indicates unprecedented levels of commerce between the two parts of the island. This implies that certain products previously sourced by Northern Irish businesses or consumers from Great Britain are now being obtained from Ireland or the broader EU. Official figures suggest that Northern Ireland’s post-pandemic recovery has been considerably stronger than the UK average. However, this growth is almost exclusively attributable to the services sector, which falls outside the scope of the Windsor Framework. Conversely, manufacturing output has remained stagnant, with factors such as energy costs, skills deficits, and global trade disruptions appearing to have a greater influence than the advantages of dual market access. Should the assembly vote in favor of retaining the Windsor Framework, as appears probable, businesses will persist in navigating the complexities of the sea border. By the end of this week, it will become apparent that a border’s arrangements are not static. A revision in EU product safety regulations, applicable in Northern Ireland, will impose new rules on some Great British businesses selling into Northern Ireland. This alteration presents a specific difficulty for micro-businesses utilizing online platforms, with some expressing concerns that they will no longer be able to transport their goods across the sea border.