Brexit & Beyond newsletter

20 January 2025

 

Welcome to the 20 January 2025 Brexit & Beyond newsletter

Today, the Secretary of State for Northern Ireland will announce if he will allow the Stormont brake to be pulled in relation to EU law (Regulation 2024/2865) on packaging and labelling of chemicals.  

Last week the Assembly approved the Human Medicines (Amendment) (Modular Manufacture and Point of Care) Regulations 2024. Committee for Agriculture, Environment and Rural Affairs continued its scrutiny of the Agriculture Bill.

The Institute for Public Policy Research (IPPR) published its report, “Towards a UK Trade Strategy”, and made recommendations for deepening the UK’s trade relations with the EU and building on the existing Trade and Cooperation Agreement.

It was also reported that the Liberal Democrats plan to table a bill on youth mobility scheme in order to boost economic growth and strengthen UK-EU ties.

 

Stormont Brake

Today, the UK government will announce whether it will allow the Stormont brake to be pulled on an EU law after a request by unionist parties in the Assembly.

The government’s decision must be made within two months of the law being published by the EU (in this case 20 November 2024).

In December, DUP MLAs notified the Speaker of their intention to pull the brake, in a bid to stop updated EU law (Regulation 2024/2865) on packaging and labelling of chemicals applying in Northern Ireland. This was backed by all unionist Assembly members in December.

Under the terms of the Stormont Brake, 30 MLAs from at least two parties in the NI Assembly can notify the UK government of their wish that the “emergency brake” on EU law be pulled i.e. that they wish to stop the application of amended or replacement EU law in Northern Ireland.

The Stormont Brake process

More information on the Stormont Brake can be found here.

If the government decides the brake has been used appropriately, it will notify the Joint Committee – the UK EU body which oversees the Withdrawal Agreement and Protocol/Windsor Framework.   The amended law will not apply in Northern Ireland in its amended form two weeks later.   The UK-EU Joint Committee will then begin discussions on the law and consider it as a ‘new’ rather than amended law – and therefore subject to an applicability motion vote in the Assembly.

At that point, the government could still agree that the law should apply in Northern Ireland regardless of the outcome of the Assembly vote if it believes there are "exceptional circumstances." This might include situations where the rule wouldn’t create a new regulatory border between Great Britain and Northern Ireland.

If the UK eventually opts out of adopting the rule, the EU can respond with "appropriate remedial measures." These could address any issues that arise, like Northern Ireland’s goods no longer fully complying with EU law.

 

Human Medicines (Amendment) (Modular Manufacture and Point of Care) Regulations 2024

Last Monday, the Assembly approved the Human Medicines (Amendment) (Modular Manufacture and Point of Care) Regulations 2024. The Minister of Health told the Chamber that by amending the Human Medicines Regulations 2012 and the Medicines for Human Use (Clinical Trials) Regulations 2004 the regulation will allow the “introduction of a new, tailored regulatory framework to support point-of-care (POC) and modular manufacturing (MM). In turn, that will decentralise methods of medicine manufacturing and move innovative medicines closer to the patient while maintaining robust regulatory standards and ensuring patient safety.”

The Minister confirmed that the framework will apply uniformly across the UK, including Northern Ireland. 

 

EU-Mercosur Agreement

In response to a topical question from Steve Aiken MLA last Monday, the Minister of Agriculture, Environment and Rural Affairs spoke to the EU-Mercosur free trade agreement. Though the deal was announced in December last year, the Minister commented that it is likely to be some time before the agreement is fully ratified and comes into effect.

Though the deal does not apply to the UK, the Minister recognised “it has a potential impact on UK agriculture markets, including those in Northern Ireland, due to the increased imports from Mercosur into the EU, particularly of beef and poultry.” He also noted that imports under reduced tariffs will be limited by a quota for some products, including beef and poultry.

Agriculture Bill

Last Thursday, the Committee for Agriculture, Environment and Rural Affairs received an oral briefing from Assembly Research & Information Service (RaISe) on the Agriculture Bill. The Committee had also received a RaISe bill paper. The Committee heard that this Bill is essentially an enabling measure giving DAERA the power to make funding for fruit and vegetable aid discretionary. It also allows the Department to make further changes to assimilated laws (formerly known as retained EU law) related to the design and delivery of legacy EU Fruit and Vegetable Aid (FVAS) programs, as well as Food Promotion and Information support.

tomatoes

A number of areas for potential consideration in relation to the Bill were highlighted including: DAERA’s budgetary challenges and the potential impacts on discretionary spend; the name of the Bill; how the Department intends to modify the assimilated provisions in legislation listed in Clauses 2 and 3; and, the introduction of the Bill before the reviews into post-EU agricultural support, including FVAS and food promotion, have been completed or published.

Though the Minister’s support of the horticulture sector and his intention not to close the FVAS Scheme was noted, it was highlighted that the Bill does not commit DAERA to a continuation of the FVAS in either its current or in amended form.

Windsor Framework Democratic Scrutiny Committee

On 16 January, the Democratic Scrutiny Committee (DSC) considered legal advice and departmental evidence on Article 51 of Regulation (EU) 2025/14 on the approval and market surveillance of non-road mobile machinery circulating on public roads and amending Regulation (EU) 2019/1020. The Committee decided not to conduct an inquiry into this EU act.

The DSC is currently conducting two inquiries. It heard departmental evidence from the Department of Agriculture, Environment and Rural Affairs on Regulation (EU) 2024/3115 regarding plant health controls and reporting obligations. Officials are of the view that the Regulation would not have a significant impact. They told the Committee that, in 2024, a total of 10,763 consignments of plants were received at ports in Northern Ireland (an average of just over 200 consignments per week). 1,708 of these were plant products moved into Northern Ireland for use in NI under the Plant Health Label Scheme, established by the Windsor Framework. The number of consignments entering NI using the ‘red lane’ procedure was 9,055. Officials highlighted that many NI businesses choose to bring consignments to NI with phytosanitary certificates under Official Controls Regulation (OCR) checks, which enables them to then supply the EU, particularly Ireland. Officials told the Committee that the Regulation doesn't change the extent of any regulatory divergence across the UK - it makes technical and procedural amendments to the existing regulations.

The DSC is also conducting an inquiry into Regulation (EU) 2024/3110 laying down harmonised rules for the marketing of construction products and repealing Regulation (EU) No 305/2011. Departmental officials commented that the impact depends on GB policy in this area and referred to the updated UK Government Explanatory Memorandum on the Regulation. UKG states it will “consider the relative merits of the EU’s revised CPR as part of developing its proposals for reform”. UKG does not expect the Regulation to result in significant impacts for businesses selling construction products in NI, nor to substantively affect trade between GB and NI. This week, the DSC will consider its inquiry reports on Regulation (EU) 2024/3115 and Regulation (EU) 2024/3110.

The DSC also heard legal advice and departmental evidence on the EU packaging and packaging waste Regulation which is set to be published in the EU Official Journal in coming weeks.

 

Supply of Goods to Northern Ireland

On Wednesday, during Northern Ireland Questions, Fleur Anderson MP, the Parliamentary Under-Secretary of State for Northern Ireland, responded to a question about the steps taken by the UK Government to “to prevent disruption to the supply of goods to Northern Ireland from Great Britain since the introduction of the EU general product safety regulations.”

She said “updated EU general product safety regulations largely formalise how businesses already operate in the UK, and the majority of businesses have adapted to continue trading within the UK and with the EU” and highlighted the guidance issued in December 2024.

 

Towards a UK trade strategy

On Thursday, the Institute for Public Policy Research (IPPR) published its report, Towards a UK Trade Strategy, in which it highlights the urgent changes needed to tackle “unprecedented global trade challenges” and turn around the UK’s declining goods trade performance.

The IPPR recommends deepening its trade relations with the EU and building on the existing Trade and Cooperation Agreement (TCA), by:

  • Seeking a mutual recognition agreement (MRA) with the EU, which will remove technical barriers to trade in goods including electrical equipment, toys and pharmaceuticals (for instance, by reducing duplication of batch testing of medicines).                                                                                                                                                                                       
  • Linking the UK and EU systems for emissions trading to remove new barriers for UK businesses, by avoiding the EU’s carbon border adjustment mechanism. This is an EU policy which charges importers a levy that reflects the carbon intensity of certain goods, which will be rolled out in 2026.                                                                                                
  • Negotiating a veterinary agreement with the EU to reduce checks on trade in agri-food products.

The report suggests that the UK should show willingness to negotiate a free trade agreement with the US under President Trump to boost UK-US trade, while firmly maintaining red lines on key issues like food standards and online safety.

It calls for stronger trade defences in case of a trade war including a legal framework to introduce counter-measures, like tariffs, against economic coercion.

 The report also recommends continuing to seek free trade deals with countries like India and exploring opportunities for ‘green trade’ agreements, such as the Agreement on Climate Change, Trade, and Sustainability made between New Zealand, Costa Rica, Iceland and Switzerland.

 

 

Youth Mobility Scheme

The Independent reports that the Prime Minister Keir Starmer is under increasing pressure to support a proposed post-Brexit youth mobility scheme that would allow under-30s to live and work in the EU. It suggests the Liberal Democrats plan to table a bill on the issue.

The Liberal Democrat Europe spokesperson, James MacCleary, argues the scheme would boost economic growth and strengthen UK-EU ties. He has challenged Labour MPs to support the initiative, stating it would provide young people with cultural and career opportunities while addressing labour shortages in the UK.

 

 Other news

  • Speaking in London on Wednesday, Liberal Democrat leader Sir Ed Davey argued the UK should negotiate a new customs union deal with the EU to boost Britain's economy and its ability to deal with the incoming Donald Trump presidency from a position of strength.                                                                                                                                                 
  • Politico reports that in an effort to ensure the presence of members, two debates in this week’s plenary session of the European Parliament won’t have their schedules published, meaning MEPs will have to stay in the chamber for the entire debate if they wish to speak.                                                                                                                                                     
  • Last Tuesday Fianna Fáil and Fine Gael, secured a deal for a coalition government with a group of seven independent lawmakers. The new government will be approved on 22 January. Fianna Fáil’s Micheál Martin will be taoiseach for first three years with Fine Gael’s Simon Harris taking over in November 2027.                                                                                                                     
  • Today the Department for Business and Trade has announced the UK-Switzerland Recognition of Professional Qualifications Agreement, allowing certain UK-qualified professionals to work in Switzerland, replacing a similar agreement in place while the UK was departing the EU.                                                                                                                                              
  • The European Parliament's Delegation to the EU-UK Parliamentary Partnership Assembly meets on 23 January. The main topic is an exchange of views on EU-UK transport and logistics with business representatives from the UK. The meeting will be webstreamed.