Potato Trade between the UK, Ireland and Northern Ireland set to be affected by EU exit

Current Northern Ireland Protocol

Goods moving between Northern Ireland and the Republic of Ireland are set to continue without the requirement of a physical border and checks of goods, according to the EU’s custom rules. However, as a result of BREXIT, the movement of goods between the UK and Northern Ireland will have to undergo checks, to ensure that VAT and the necessary tariffs are met for goods moving into the Republic of Ireland. This will be heavily dependent on the current exit talks between the UK and the EU, as goods moving from Northern Ireland to the Republic of Ireland will incur a tariff which will be refunded for goods that remain in Northern Ireland and do not enter the Republic of Ireland.

The government confirmed on the 16th of December that from the 1st of January 2021, prohibited commodities such as GB high-risk plants, seed potatoes and ware potatoes cannot be exported to the EU or Northern Ireland. Therefore, only if the UK is granted third country equivalence before the 1st of January 2021, will the export of seed and ware potatoes be permitted into Northern Ireland.

Implications on phytosanitary regulations

As it currently stands, the EU Plant Health Regulation (EU) 2016/2031 stipulates that the import of potatoes into EU member states is currently prohibited. The UK has also not been granted third country equivalence, which would remove the regulatory hurdles that are currently imposed and deem the UK an EU equivalent regime. If third country equivalence is granted before 1 January 2021, the export of fresh potatoes from the UK to the EU will be permitted. It will also then be necessary for all Great Britain exports of fresh potatoes to have phytosanitary certificates when entering the EU. This will necessitate an application for inspection for the potatoes to be issued a plant health certificate.

Impact on potato exports

Due to the lack of border controls, potato exports to Northern Ireland cannot be accurately quantified. The Republic of Ireland is a key export destination for the UK, with fresh potatoes making up almost a third of all potatoes exported to the Republic of Ireland. Northern Ireland receives Great Britain potatoes for processing before they are exported to the Republic of Ireland, or at times they are moved directly to the Republic of Ireland, without processing. However, due to Brexit and the pending outcome of the Internal Market Bill, potato exporters will face changes to regulatory certification and potential cost implications, as a result of the tariffs and added certification that will become necessary when exporting goods across the Irish sea, either to Northern Ireland or the Republic of Ireland.

Preparation for the outcome of the negotiations

Trade relating to multiple industries between the UK and the EU is currently being negotiated, and the creation of a multi-faceted deal is proving difficult to iron out. Exporters, therefore, need to prepare for the potential regulations that will be implemented on the 1st of January 2021. Exporters need to inform themselves regarding the potential tariffs and the requirements necessary to fulfill phytosanitary certification to export across the Irish sea. Logistical operations need to be carefully planned to ensure full compliance, including the application for a UK Economic Operator Registration and Identification (EORI) number.

Sources:

BBC News. “Brexit: What will happen in Northern Ireland?” 

AHDB. “EU exit policy changes affecting potato trade with Ireland and Northern Ireland.” 

AHDB. “Potato trade with the island of Ireland and what sectors may be most at risk on EU exit.” 

Synechron. “The Equivalence Regime and What it Means for Countries outside the EU.”