Article 16 would leave NI an investment “backwater”, commission hears

  • Northern Ireland to become a “backwater” for foreign direct investment if Article 16 triggered warn experts and business leaders

  • UK and EU must involve representatives from Northern Ireland in future negotiations or businesses and consumers will be jeopardised

  • Former cabinet minister the Rt Hon. Sir David Lidington cites “absence of trust” as key reason for holding back progress on the protocol

A commission of MPs and business leaders have been warned that triggering Article 16 would turn Northern Ireland into a "backwater" of foreign direct investment, jeopardising businesses, harming consumers and discouraging people in Great Britain from trading with Northern Ireland.

The comments came at a session of the cross-party, cross-industry UK Trade and Business Commission which featured former Chancellor of the Duchy of Lancaster, Sir David Lidington, along with trade experts. The session examined the Northern Ireland Protocol and the potential economic and political consequences of the UK government triggering Article 16.

At the session witnesses also described how triggering Article 16 would call into question the legality of certain goods coming from Northern Ireland and called for greater involvement of Northern Ireland representatives and for the UK to rebuild trust with the EU.

The Rt Hon. Sir David Lidington KCB CBE, Former Chancellor of the Duchy of Lancaster, said:

“If we can rebuild trust, that I think can persuade the EU to take greater risks on the legal side, it is the absence of trust that is holding back the progress on de-dramatisation and making some of these checks less onerous.”

“From the UK point of view the key thing is to bring in representatives, elected or business, from Northern Ireland in visible positions, both advising UK ministers on the stance they should take and having them as members of the various committees and subcommittees to be established under the protocol.”

Professor Katy Hayward, Queen's University, Belfast, said:

“We know from the polling that there isn’t a general understanding of what Article 16 means in Northern Ireland, and that’s perfectly understandable given the lack of information and clarity that has been offered publicly around Article 16.” 

Seamus Leheny, Policy Manager for Logistics UK in Northern Ireland, said:

“Businesses only deal with legal certainty and what Article 16 does with regards to investment and movement of goods in and out of NI, it questions the legal certainty of those goods and does nothing to address the stability, certainty and clarity that businesses crave. 

“With regards to investment and ongoing business it would obviously jeopardise many businesses here whether anyone likes it or not. Our supply chains are deeply integrated with both GB and the Republic of Ireland. 

“It makes people very nervous in businesses if that happens, and it certainly makes this place a backwater in terms of attracting foreign direct investment.” 

Hilary Benn MP, Co-Chair of the UK Trade and Business Commission, said:

“The evidence we heard today should bring home the very serious consequences of any escalation in the dispute about the Northern Ireland protocol, including by Article 16 being triggered.

“For all of us but particularly in the interests of the people and businesses of Northern Ireland, Ministers and the EU should avoid further confrontation at all costs and instead concentrate on negotiating a pragmatic way forward.”

Previous
Previous

New trade stats: Lost EU trade driving fall in imports

Next
Next

Brexit disruption to clinical trials a matter of ‘life or death’ for British patients