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Business leaders have welcomed the Brexit deal between the EU and the UK agreed on Christmas Eve, while also highlighting the new barriers to businesses that will be imposed as a result of the exit from the European Union.
British Irish Chamber of Commerce CEO John McGrane said businesses in Ireland and across the UK could now “breathe a collective sigh of relief”.
“The new trade agreement will help protect nearly € 90 billion in trade across the Irish Sea and will maintain 400,000 jobs on these islands,” he said.
However, McGrane added that while the agreement protected free trade in goods, companies still faced higher costs, delays and disruptions in sectors such as financial services.
“This will add new costs to companies at a time when they are looking to recover from the increasing impacts of Covid-19,” he said.
“It is also clear that many companies need more time to adjust to this new regime, so reasonable grace periods are now needed for implementation. In any case, new customs and regulatory requirements leading to possible delays will mean that companies will need help. “
Aodhan Connolly, director of the Northern Ireland Retail Consortium, hoped that the deal would “protect consumers across the UK from billions in import duties on everyday products.”
Customs frictions
“For Northern Ireland it also means a reduction in new customs frictions between the UK and NI,” he said.
Connolly said the agreement and the new UK merchant scheme, which should mean 98 per cent of trade between Britain and Northern Ireland was duty free, and assistance to cover the cost of export health certificates , they were “welcome Christmas gifts for the business community and families in Northern Ireland.”
“But even with a deal, retailers face a very different retail landscape than January 1, with a lot of new checks and costs. The result will be increased costs for companies, some of which may affect consumers, ”he added.
In a statement, Manufacturing NI said that while “everyone has been exhausted for the last four and a half years,” the “work cannot finish” the deal.
“In less than eight days there will be a fundamental change in the way companies buy from Britain,” he said.
‘Very difficult’
“Despite some easements created by this agreement, there will still be significant new complexities and costs, and without the details, systems and processes, our firms are not ready. As a result, the start of 2021 is going to be very difficult, ”he added.
Manufacturing NI said the deal came at a significant cost. “It is the first trade agreement in history that makes doing business more, not less, difficult, and enforces a full customs border between Britain and the EU and with Northern Ireland.”
Dawn McLaughlin, president of the Londonderry Chamber, said that an agreement was always “paramount” for companies in Northern Ireland.
“While it has come at the last possible moment, companies across the country will be relieved to have some certainty and clarity going into 2021,” he said.
“A no-deal situation, on the brink on December 31 was unthinkable for companies in the Northwest and would have caused incalculable damage to our regional economy, so it is a relief that this is at least avoided,” he added.
McLaughlin said the British government must now make it clear to companies what they need to do to prepare for the changes to come. She said, “The work doesn’t end here. It should support business organizations to assist and advise local businesses, take a pragmatic and flexible approach during the first months of 2021 and provide the necessary funding that will help businesses continue to trade in the UK and Europe in the future. ” .
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