Brian Keegan: Scant regard for wider industry in Brexit talks

The whole idea behind the Brexit transition period was that when the UK left the EU, as it did on January 31 last, there would be an interval of 11 months to settle the future trading relationship.

Yet, at the time of writing, with just over three weeks to go, no deal has been agreed.

For weeks we have been hearing that the sticking points on talks progress have remained the same — the question of the UK offering its industry state supports, arbitration on breaches of any deal, and the fishing industry.

With no disrespect to the people working in the sector, it is remarkable that the fishing industry seemed to feature above all others in the trade deal negotiations. 

The value of EU fishing rights in UK waters is estimated at about €650m a year, or about 1% of total EU-UK trade. 

Vastly greater sectors, such as manufacturing, agriculture, transport and the services industry may justifiably feel dismayed at this.

Both the EU and UK negotiators say they want a trade deal, but we are pinning too much hope that any deal can resolve all of the future trading difficulties between the UK and the EU.

While a trade deal may result in no customs tariffs on goods being charged, no tariffs does not mean that there are no customs declarations required.

Importers and exporters must make customs declarations on goods which cross British borders and these declarations are contingent on traders having an EORI — or Economic Operators' Registration and Identification — number. 

Though it seems most businesses which deal with the UK now have the EORI registration, any businesses without this registration will not be able to trade with the UK after January 1 next, irrespective of whether there is a deal or not.

Similarly, independent of any deal being struck, checks for hygiene controls and standards will still be operated on imports from Britain. 

Problems with the trade in processed meats like sausages and potatoes intended for the fast-food industry have been highlighted in recent days, but these types of restrictions will apply to many goods. 

It will be a thing of the past that trucks can roll on and off British ferries without anything more than a cursory inspection.

Tariffs are not the only taxes which attach to imports from outside the EU. Vat will be immediately chargeable on the value of British imports. 

Although it is now expected that Irish legislation will be changed to allow Irish importers defer the payment of such Vat, there will nevertheless be changes in procedures and declarations.

In short, the trade talks which are now ongoing are simply that — trade talks. Most services are not within the ambit of the current negotiations.

Post-January 1 it will be more difficult for people to have their professional qualifications recognised across the UK border. 

British service providers will find that the standards which they adhere to in financial services, software development, warranties and customer care may no longer be valid in the EU marketplace.

Neither party to the negotiations has been forthcoming in keeping industry up to date with the contingency arrangements which will have to be put in place so that trade does not completely become bogged down after January 1 next.

This seems to have been a negotiating tactic but it hasn’t helped industry in its preparations.

Any deal, however minimal or restricted, will improve the future trading situation with the UK. 

No matter what is agreed, it’s going to be a lot more difficult to do business with Britain after January 1 2021.

• Dr Brian Keegan is director of public policy at Chartered Accountants Ireland