Brexit: Protocol could promote NI as 'distribution hub'

The NI Protocol should be used to promote Northern Ireland as a distribution hub for businesses which sell into the EU and UK, a think tank has suggested.

Some firms such as JD Sports have opened distribution centres in the EU.

This is because Brexit makes it commercially unviable to supply EU countries from Great Britain.

The think tank says Northern Ireland is uniquely placed to act as an alternative distribution centre.

The Institute of International and European Affairs (IIEA), which is based in Dublin, says this is because Northern Ireland can send goods to GB and the EU without tariffs.

The protocol is the special Brexit deal for Northern Ireland which keeps it in the EU's single market for goods.

Northern Ireland also continues to apply EU customs rules on goods arriving at its ports although it is still part of the UK customs union.

This allows free-flowing trade with the EU but it means goods arriving from Britain face checks and controls.

Before Brexit, companies in Britain could import goods from countries such as China, pay the EU's common external tariff and then freely distribute the goods to other EU countries.

Now they have to pay the UK tariff on the initial import and additionally face the EU's tariff when sending the goods to their stores in the EU.

Northern Ireland also continues to apply EU customs rules on goods arriving at its ports although it is still part of the UK customs union

That onward supply of goods from GB to the EU also faces new paperwork and potential delays.

JD Sports is tackling that issue by leasing warehouses in France, Belgium, the Netherlands and the Republic of Ireland.

Goods can be sent there directly from suppliers in Asia rather than being routed through their existing facilities in the UK.

The IIEA says the protocol gives Northern Ireland an opportunity in this area.

• Why is there a Brexit row over a European court?

• Most NI checks on British goods to be scrapped

• 'We do see opportunities, but have had problems'

It says: "If these goods enter NI by direct transport under the EU's customs code there is free circulation within the EU and unfettered access to GB.

"This makes NI a viable alternative distribution model to sell into both GB and the EU, because NI is in the UK Customs Union and also has free circulation in the EU."

'Hardening of views

Meanwhile, a report led by Queen's University Belfast has suggested that Brexit is leading to a "hardening of views" in Ireland and Northern Ireland.

The report is part of The Border after Brexit project in conjunction with the Irish Central Border Area Network (ICBAN), a cross-border local authority partnership of eight local authorities in the Central Border Region of Ireland/Northern Ireland.

It is co-authored by Professor Katy Hayward and Dr Milena Komarova from the School of Social Sciences, Education and Social Work at Queen's.

The research consisted of an online survey of 394 unique responses, focus groups and stakeholder interviews with participants across the region, from both sides of the border.

The survey is taken from a self-selecting sample, so the comments and viewpoints submitted by respondents, not the quantitative results, are the focus of the report.

Respondents express most concern for the societal impact of Brexit and the Protocol, on cross-border and cross-community relations.

Many give examples of a "hardening of views" on both sides, including among young people.