EU GPSR Rules Force UK Firms to Cut Northern Ireland Trade

UK Firms Face Rising Costs and Trade Barriers Under GPSR Rules

The most obvious effect is on trade links between the UK and Northern Ireland. British companies now appoint a “responsible person” based in the EU or Northern Ireland, which complicates and raises the operating costs. This need surprises many small companies, including those that solely sell on the UK market.

Industry data indicates, despite the optimistic assessment of the UK government, “most UK businesses that sell goods in NI will likely have sufficient arrangements in place.”

Regulatory costs have caused even profitable medium-sized companies with yearly sales of up to £20 million to already leave the EU market.

The new GPSR criteria most likely will lead to similar trade restrictions for Northern Ireland.

The business community has expressed major concerns through mainstream and social media. Many businesses have claimed they received insufficient notice of these developments. The situation is particularly challenging for small and micro businesses, mostly focused on domestic UK sales.

Post-Brexit Trade Challenge

The immediate impact of these rules seems to be a possible decline in trade with Northern Ireland since many smaller UK companies may decide to stop running in this region instead of following the new criteria.

This development could create a split in the internal market of the UK, limiting the availability of goods for Northern Irish consumers.

Solutions are starting to show up for businesses trying to keep on operating in Northern Ireland. While the actual usefulness of such solutions is yet unknown, Webinterpret lately revealed a compliance tool to help companies negotiate the new GPSR obligations.

This scenario highlights the ongoing challenges of post-Brexit trade agreements and their consequences on the cohesiveness of the UK internal market considering Northern Ireland’s unique situation under the Windsor Framework Agreement.