Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UK supermarkets supplying N. Ireland to get grace period after Dec. 31

Published 09/12/2020, 13:08
Updated 09/12/2020, 17:10
© Reuters. FILE PHOTO: Britain's Chancellor of the Duchy of Lancaster Michael Gove is seen outside Downing Street in London
TSCO
-

LONDON (Reuters) - Supermarkets selling into Northern Ireland will have a grace period to adapt their supply systems to the post-Brexit trading reality, the British minister in charge of implementing the divorce deal said on Wednesday.

When the United Kingdom exits the European Union's orbit on Dec. 31, Northern Ireland will remain aligned to the EU's single market and goods arriving in Northern Ireland will be subject to EU customs rules.

That has created a host of questions about how goods will go from Britain to Northern Ireland -- and how to stop Northern Ireland becoming a back door into the EU's single market.

After agreement at a joint UK/EU committee working out how to implement the 2020 divorce deal, Chancellor of the Duchy of Lancaster Michael Gove said that supermarkets would have time to adapt to new arrangements.

"This deal will keep goods flowing between Great Britain and Northern Ireland in January and indeed provide some necessary additional flexibilities," Gove told parliament, saying the move was in response to requests for a grace period.

All of Britain's big four supermarket groups -- Tesco (LON:TSCO), Sainsbury's, Asda and Morrisons -- have a presence in Northern Ireland.

Gove said retailers in Northern Ireland bringing in food products from Britain will be exempt from having to complete export health certificates for three months from Dec. 31.

On the specific issue of bringing in chilled meats, including sausages, Gove said the UK government had secured a six month grace period during which there will be "absolutely no change" to current regulations.

He said the UK government would keep the operation of the agreement under review and that more detail would be provided for small and medium sized enterprises once the joint committee "concludes on exactly how we can safeguard their interests."

The main trade body representing independent retailers and wholesalers asked for immediate clarification on whether the three-month grace period will apply to its 1,300 members.

"At a meeting today with the Secretary of State for Northern Ireland, I asked him directly if this applied to our members and he did not answer my question," Retail NI Chief Executive Glyn Roberts said in a statement.

© Reuters. FILE PHOTO: Britain's Chancellor of the Duchy of Lancaster Michael Gove is seen outside Downing Street in London

"It is absolutely unacceptable that the UK Government could make a major statement and not have this information available, which could potentially result in a third of our local independent food and grocery sector being at a competitive disadvantage to large supermarkets."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.