Northern Ireland Protocol can give economic advantage - CBI boss

The protocol avoids a hard border on the island of Ireland

The Northern Ireland Protocol can give the region an economic advantage but will require further moves by both sides, the head of the UK's biggest business association has said.

Tony Danker, the director general of the CBI, said the UK government would need to work to build trust with the EU.

He warned that taking unilateral action would not help with that.

He said the EU would need to move beyond proposals it made in October.

The protocol is part of the UK's Brexit deal with the EU to ensure the continuation of frictionless trade across the Irish land border.

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It does this by keeping Northern Ireland aligned with the EU single market for goods.

However, this means additional checks being placed on some goods moving between Great Britain and Northern Ireland.

In October the EU proposed changes which it said would reduce the needs for checks and controls.

The UK government says these do not go far enough and is threatening to override the deal in UK law if the EU does not agree to more radical change.

The director general of the CBI said current arrangements for UK imports to Northern Ireland were too difficult

Mr Danker explained that because the protocol gives Northern Ireland manufacturers unique access to the UK and EU markets, it is a competitive advantage.

"For a large number of businesses it is working great," he said.

"If you're a manufacturer you have access to dual markets.

"That is a very big deal in the context of the overall Brexit fall out."

However he said that for businesses which were importing goods from the rest of the UK, the current arrangements were too difficult.

"If you're importing stuff to Northern Ireland it is not working yet or its far too complex or the transaction costs are far too high."

He said there was an onus on the EU to recognise Northern Ireland's "special situation" which should be matched by trust-building measures by the UK.

"I don't think unilateral action builds trust," he added.

The Northern Ireland Assembly has been unable to sit because the DUP has refused to nominate a speaker

Mr Danker also warned that the lack of a fully-functioning devolved government in Northern Ireland would be a growing economic problem.

The Democratic Unionist Party are refusing to nominate a deputy first minister to the Stormont Executive in protest at the protocol.

Mr Danker said: "There are some areas in which a functioning executive is a precondition to strong levels of investment.

"Anything where public regulation or public subsidy is relevant, for example in infrastructure and energy markets.

"If we want prosperity to take hold in Northern Ireland we need a functioning executive."