In Northern Ireland, companies want to get out of Brexit

In Northern Ireland, things are rarely black and white. Instead, they’re greens, oranges, and various shades in between.

The region has been the central issue in EU-UK negotiations since the Brexit vote in 2016. The key question: where should the border be that separates the EU single market from the UK market?

The EU and UK have repeatedly agreed that the border should not be on the island of Ireland, given the toxic legacy of ‘The Troubles’ – the 1969-1998 conflict that claimed over 3,500 lives and ended with the Friday Agreement. Holy Fair. Most people in Northern Ireland agree, polls say.

The compromise is the so-called ‘Irish Sea border’, where goods are checked before being transferred from Great Britain to Northern Ireland. The Northern Ireland Protocol includes this law, but its implementation in 2021 has angered some members of Northern Ireland’s pro-British unionist community, who have seen it as a dilution of their link with the UK.

They and others also lamented other aspects of its practical application, saying it imposed high levels of unnecessary red tape on businesses and frustrated commerce, introducing restrictions on everything from sausages to pets.

give us a brake

The discussion became very bitter. It threatened several times to escalate into a trade war when Boris Johnson was UK Prime Minister. But under Rishi Sunak, the EU and UK worked hard to find a solution. Last month, Sunak and European Commission President Ursula von der Leyen unveiled a new plan at what was by far the warmest EU-UK summit since Brexit.

The Windsor Framework removes the vast majority of checks on goods entering Northern Ireland from Great Britain, amid other changes. Sunak said it has made Northern Ireland the “most exciting economic zone in the world” because of its dual access to EU and UK markets.

Politicians across the UK and Ireland welcomed it as a breakthrough. But many trade unionists are not happy. The Democratic Unionist Party (DUP), the largest unionist party and the second largest party in Northern Ireland behind the Irish nationalist Sinn Fein party, says it is still not enough.

On 22 March, Sunak’s government held a vote in the House of Commons on one aspect of the framework, the ‘Stormont Brake’ mechanism, under which the Northern Irish parliament and the UK government can stop new EU laws be introduced in Northern Ireland.

The vote was approved by 515 votes to 29, with even the support of the opposition. The DUP, which has seats in Stormont and the House of Commons, voted against it along with 22 rebels from the Eurosceptic wing of Sunak’s Conservative Party. Former Prime Ministers Johnson and Liz Truss, both interested in undermining Sunak, were among them.

A business opportunity

However, Sunak does not need DUP support and the Windsor Framework is expected to proceed with implementation regardless. He says there will be no further negotiations. Businesses in the region are largely supportive and eager to move forward after nearly a decade of uncertainty.

Stephen Kelly, chief executive of Manufacturing NI, says the deal confirms a long-established reality – that the border on the island of Ireland cannot return because of Brexit.

“The reality is that the tectonic plates are not going to move on the island of Ireland,” he told DW. “And it will not be moved to the middle of the Caribbean. This will always be where the EU single market and the UK internal market meet.”

Kelly represents Northern Ireland manufacturers. He says his own surveys show that roughly one in five of its members have reported that, since the Protocol came into force, their British suppliers have stopped sending goods to Northern Ireland due to customs charges.

He hopes the new deal will change that. “Our view is that the framework provides a great foundation to reopen these supply lines, make them safer and maintain Northern Ireland’s position in the UK market,” he said. “But also to maintain Northern Ireland’s position in the EU goods market, which we’ve seen quite a significant benefit from.”

On Sunak’s assertion that Northern Ireland is now the ‘most exciting economic zone in the world’, Kelly laughed and said it doesn’t feel that way looking out the window on a cold, gray day in Derry. But he adds there is genuine “validity” to the claim given that Northern Ireland has exclusive access to both markets.

“Certainly when it comes to exports and sales of goods and as a venue in terms of attracting inward investment, if we sort out that protocol stuff and the policy around it, we know we’re able to get the most out of that.” he said.

“We are left with a unique opportunity and proposition that we can bring to the world… we have something now that nobody else has and we want to make the most of it.”

Politics vs. economy

The vast majority of business groups agree with his sentiments. The general public is also supportive. A recent poll by the Irish News-Institute of Irish Studies-University of Liverpool found that three-quarters of people who expressed an opinion on the new deal supported it.

None of this swayed the position of the DUP, which focuses its opposition on constitutional issues – specifically the application of EU law in Northern Ireland.

They say the mechanism voted on Wednesday – the ‘Stormont Brake’ – will not prevent the introduction of new laws.

“The case remains that the ‘brake’ was not designed and therefore cannot be applied to EU law which is already in force and for which no consent has been given for its application,” the party said in a statement.

Even if their opposition doesn’t stop the new legislation, that is likely to mean they won’t be returning to Northern Ireland’s power-sharing deal with Irish nationalist Sinn Fein anytime soon. That has not worked for four of the past six years amid deep divisions between the parties.

In the last election in May 2022, Sinn Fein became the largest party for the first time in Northern Irish history. This would give them the symbolically significant post of prime minister in any government.

Some political commentators speculate that, as this is something the DUP does not want to tolerate, it hopes to be able to force another election and come out on top again, rather than returning to government as a ‘junior’ Sinn Fein party.

It’s green and orange again, complicating black and white. In that sense, political change still seems a long way off in Northern Ireland. But those who speak for the business side increasingly want to move forward.

Edited by: Ashutosh Pandey