Brexit & Beyond newsletter

30 September 2024

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Welcome to the 30 September 2024 Brexit & Beyond newsletter

On Monday, the First Minister and Economy Minister answered questions in the Chamber. Updates were provided on Invest NI’s European Programme and IntertradeIreland.

At the European Parliament, the composition of its interparliamentary delegations were announced on Thursday. The UK delegation to the PPA has not yet been confirmed.

Nick Thomas-Symonds travels to Brussels today to meet with European Commission Vice President Maroš Šefčovič whose portfolio includes UK-EU relations. This meeting takes place ahead of a meeting between the Prime Minister and the European Commission President Ursula von der Leyen in Brussels on Wednesday. 

 

 

Northern Ireland Assembly

During oral answers to questions on Monday, the First Minister confirmed the Executive Office had received an exploratory date for the proposed Council of Nations and Regions. 

The Minister for the Economy Conor Murphy gives oral answers to questions on Monday

The Minister for the Economy told the Chamber that Invest NI has developed a European programme that will promote Northern Ireland as an investment destination. The programme includes a comprehensive online marketing campaign and a series of in-person events, the Minister will attend the first in Germany in October. Further events are planned for the Netherlands and Belgium. Having returned from North America, the Minister also reported interest there in Northern Ireland’s dual market access opportunities.

Minister Murphy said that departmental officials have initiated a local business forum to co-design support and guidance for navigating the new regulatory environment and maximising dual market trading opportunities. He referenced published research that identifies the sectors which are most likely to benefit from access to both markets.

He continued that it is difficult to measure the exact impact of dual market access across manufacturing using existing data. The Minister reported a small increase in goods being exported from Northern Ireland to the EU over the past year. He said that goods exports from Great Britain to the EU fell by 9% over the same period.

Answering a supplementary question from Phillip Brett, the Minister told the Assembly that the Ulster Bank purchasing managers index showed that the manufacturing sector had the highest level of growth, activity and new orders and the strongest level of optimism of any sector. He suggested this “points to an improving picture for the manufacturing sectors, but I agree with the Member that we want to ensure that our companies can grow, export and trade as seamlessly as possible, both east-west and North/South.”

Moving to InterTradeIreland’s budget, Minister Murphy said it reflects the body’s operating needs, in line with its annual business plan. For 2024, InterTradeIreland's budget is £15·4 million. He confirmed it is funded at its level of need. The split is on a one third/two thirds basis between the Department for the Economy and the Department of Enterprise, Trade and Employment (DETE).

The Minister stated that additional funding has been used to increase staff numbers at InterTradeIreland from 47 to 65. Recruitment is ongoing. Minister Murphy told the Assembly that InterTradeIreland will be a key component in ensuring that the advantages of dual market access are properly understood and advanced by businesses across the island. 

 

 

European Parliament

On Thursday, the European Parliament confirmed the composition of its interparliamentary delegations. This legislative term will have 48 interparliamentary delegations - four more than in the last. The delegation to the EU-UK Parliamentary Partnership Assembly (PPA) has 35 members. The constitutive meeting of the delegation is scheduled for Thursday, 3 October 2024 and will be web streamed here. The PPA was established under the Trade & Cooperation Agreement for the UK and European Parliaments to exchange views on the work of the Partnership Council, the UK-EU governance body which oversees the TCA. Read more about these structures here

The UK delegation to the PPA has not yet been confirmed.

Politico reports that senior MEPs will decide this week whether to start interviewing the 26 nominees to become European commissioners on 14 October or 4 November.

 

 

UK-EU relations

This Wednesday, the Prime Minister Keir Starmer will meet the European Commission President Ursula von der Leyen in Brussels to discuss “resetting” the UK’s relationship with the European Union. The FT reports this meeting comes amid continued divisions in his cabinet over whether to agree a youth mobility deal with the EU. 

The Prime Minister Keir Starmer and the European Commission President Ursula von der LeyenThe Prime Minister Keir Starmer and the European Commission President Ursula von der Leyen

As reported by the FT, "Starmer has to use the meeting to provide a greater, concrete sense of what the government actually wants to do. It can't be another 'mood music' meeting - that won't land well in Brussels," said Mujtaba Rahman of the Eurasia Group political risk consultancy.

Labour has ruled out rejoining the single market or seeking a customs union with Europe, preferring to seek additions and improvements to the existing Trade and Co-operation Agreement. These include a "veterinary agreement" to reduce trade barriers on agrifoods, easier access for service professionals and a deal to reduce paperwork for touring musicians and other artists.

Differences have emerged between the two sides over the question of a youth mobility deal. Last week Pedro Serrano, EU ambassador to the UK, played down the issue ahead of the meeting, suggesting the scheme should resemble a "gap year" programme that would not grant European citizens the right to work in Britain. The commission proposal, now being revised by member states, suggested four years' residence for the under-30s.

However, speaking after Serrano's intervention, Starmer reiterated his position that he has "no plans for a youth mobility scheme" between the UK and EU. He added that he shared the view of Yvette Cooper, UK Home Secretary, that it risked undermining public perceptions of the government's approach to immigration.

On Wednesday, the Guardian reported that 23,000 people came to the UK last year to work as part of the British youth mobility scheme. Most of the people on the youth mobility scheme (YMS) visa programme in 2023 were from Australia, with 9,900 workers, and New Zealand, with 5,300.

The YMS allows people from 12 countries to come to the UK for a two- or three-year period to work. Since Brexit, no exchange programme has existed with the EU.

The Prime Minister will also see the presidents of the other EU institutions, Charles Michel of the European Council of national leaders, and Roberta Metsola of the European Parliament.  Ahead of the Prime Minister’s visit, Minister for European Relations Nick Thomas-Symonds travels to Brussels today to meet with European Commission Vice President Maroš Šefčovič whose portfolio includes UK-EU relations. Home Secretary Yvette Cooper will also meet with European Commissioner for Home Affairs Ylva Johansson this week.

The talks this week are seen as preparations for an EU-UK summit next spring. 

 

 

Border checks

From 30 September, Northern Ireland businesses can import beef, lamb and poultry tariff-free from around the world through UK Free Trade Agreements.  The new arrangements are available alongside the new UK Internal Market system.  When the arrangements were ratified in May, the Government said “This major milestone illustrates the UK Government’s commitment to maximising trade and opportunities for Northern Ireland’s businesses.”

Last Tuesday, the Independent reported that Emily Thornberry, the new Chair of the Foreign Affairs Committee, has indicated that she intends push the Prime Minister to cut “unnecessary checks at the border as part of his planned Brexit EU reset.”

 

 

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