Retailers welcome new Northern Ireland deal on Brexit

The Windsor Framework, negotiated with the EU by Sunak, would reduce complexity and issues such as red tape and logistics challenges that have affected fresh food supply in particular. That was a result of the conditions required to keep open Northern Ireland’s land border with the neighbouring Republic, an EU member.

The plans include the creation of ‘green lanes’ for the supply of products solely to Northern Ireland, involving less paperwork than previously demanded and far fewer checks on items in transit. 

However, there was also some concern about the need for separate labelling to distinguish goods only for sale in Northern Ireland and those eligible for sale in the EU across the border, which would have to pass through ’red lanes’.

Other changes include the removal of a planned requirement for a customs declaration for all parcels sent by UK businesses to Northern Ireland, which should benefit online retailers. 

Norman told Retail Week: ”Net net, for all our businesses, this is positive. Our costs are going to go down. The fly in the ointment is the labelling requirement.

“The relaxation of the rules for Northern Ireland is very welcome. We’ve got a much bigger business in Northern Ireland than in the Republic, so from our point of view that’s a win. There are some details to follow up on, but it looks pretty good.”

Sainsbury’s chief executive Simon Roberts said: “We welcome the positive news on the Windsor Framework, which will help to simplify processes and reduce friction when we move products between Great Britain and Northern Ireland.

“This means that our customers in Northern Ireland will once again be able to access the full range of products as customers in Great Britain – and at the same great prices.”

M&S, unlike many of its food retail counterparts with the exception of Tesco, trades in the Republic as well as Northern Ireland, and Norman observed that the different rules that will still operate brought complications.

He said: “That’s where the labelling requirement bites. It means that a small minority of our product is going to have to be separately labelled.”

A small M&S artisan cheese supplier, “sitting in Bordeaux or wherever”, would have to work out how much of their product would go to the Republic and label it separately.

However, Norman concluded: “It would be ridiculous for us not to welcome this [deal]. It’s a huge achievement. The great thing is that sorting the Protocol should unlock the door to a more rational dialogue with the EU and EU countries about how borders work and how we reduce the friction.

“We think this is the gateway to a whole new dialogue which should be constructive. If we can do that, the labelling issue is something we will find a way of managing.”

Northern Ireland Retail Consortium director Neil Johnston cautioned that the detail of changes would be vital but said: “It is good to see a deal has been reached that we hope will reduce friction across the NI-GB border. 

“Anything that adds to cost pressures ultimately can feed through to the prices paid by struggling households.” 

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