Trading relationships being lost due to Windsor Framework, MLAs told

South Wales Guardian

a day ago

The Federation of Small Businesses (FSB) said the results of a UK-wide report showed that one in three firms surveyed had faced 'significant disruptions' due to the post-Brexit trading arrangements.
The Windsor Framework was agreed between the UK and the EU in 2023, amending the Northern Ireland Protocol. It governs post-Brexit trading arrangements in the region.
Under the framework, Northern Ireland continues to follow some EU laws relating to goods.
Roger Pollen, head of the FSB in Northern Ireland, told Stormont's Committee for the Economy they had surveyed 778 businesses across the UK on the impact of the framework on their trade.
He said: 'The Windsor Framework is now firmly part of the economic and political landscape of Northern Ireland.
'It has provided a basis for managing trade arrangements between GB, Northern Ireland and the EU following the UK's withdrawal from the European Union.
'While the Windsor Framework aimed to stabilise relations and offer clarity after years of uncertainty, our research suggests that for many small businesses practical uncertainties and barriers remain and in some cases have worsened.'
He said while some firms were adjusting and innovating, others, particularly smaller businesses, are being 'left behind'.
He said: 'The headline finding is that one in three businesses surveyed have already faced significant disruptions such as supply chain delays, stock shortfalls and lost sales due to the Windsor Framework with 29% anticipating future disruptions.
'A significant number also said it had induced uncertainty into business planning.
'In GB a large proportion of firms told us they had only limited understanding of the Windsor Framework, 75% rated their knowledge as low and many reported they had simply stopped trading with Northern Ireland due to perceived cost complexity or risk.
'This aligns with what our members in Northern Ireland are telling us that longstanding supply chain relationships are being lost because suppliers no longer see Northern Ireland as commercially viable under the current arrangements.
'This is a serious concern for Northern Ireland's internal market connectivity and long-term economic resilience.
'When Northern Ireland businesses struggle to source stock from GB, or when they are told by suppliers that we don't serve Northern Ireland any more, that is not just a logistics issue, it is a competitiveness and investment issue.'
Mr Pollen said access for Northern Ireland businesses to both the UK and EU markets had been sold as one of the advantages of the framework.
But he added: 'Our finding show this remains largely theoretical for many firms.
'Awareness is low with only a small proportion reporting that they feel that they understand and have been able to take advantage of dual market access whilst 88% report that they didn't think the concept of dual market access is being adequately explained or promoted by the UK Government or the Northern Ireland Executive.'
He also said that many businesses which trade between GB and Northern Ireland feel overwhelmed by which rules apply, who they should contact and the number of public bodies involved.
He said: 'There is clearly a need for a more co-ordinated plain-English guidance that focuses on communicating answers to real business needs.'
He told MLAs that the report contains 12 recommendations, including improving clarity and consistency in official guidance, enhancing the trader support service to be more responsive and user friendly, calling on the UK Government to actively promote dual market access and improving cross-government co-ordination on regulation divergence.
He said: 'These are not demands for renegotiation. They are realistic, proportionate measures that reflect what businesses are telling us they now need to trade confidently, plan and grow.'
Committee chair Phillip Brett said the report showed that just 14% of businesses in Northern Ireland felt they were benefiting from dual market access.
Mr Pollen said: 'I think the problem is that for 30-odd years businesses in Northern Ireland have had dual market access, since the single market came into being that has been the norm.
'So, I don't think there is a clear perception of having this special access, that is what we have always had.'
He added: 'What we are finding, the real concern is that actually although everybody, from the First Minister downwards, recognises the benefits and value of dual market access, one of those markets is increasingly closing, that is what the evidence is telling us.
'It is the fact that the UK market, ironically, is the one that is becoming difficult to engage with, as evidenced by the survey.'