Goods Trading: Great Britain and Northern Ireland

Jim Shannon Excerpts

Tuesday 15th September 2026 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I commend the hon. and learned Gentleman on introducing the debate. One of the greatest issues we all face is the crisis in the supply of veterinary medicines following Brexit. They continue to be subject to additional EU regulatory requirements, and farmers continue to face potentially serious consequences for animal welfare and the responsible management of antimicrobial resistance. Does the hon. and learned Gentleman therefore agree that Northern Ireland cannot continue to be economically cut off under the regulatory burdens placed on farmers and vets? Those burdens must be reduced.

[Jim Allister]

I think all that is self-evident, but sadly, we have a Government who are deaf to those issues, and sadly, the hon. Member’s party seems to have come to terms with them, because in Stormont, the DUP is now prepared to implement the Irish sea border and the Windsor framework, but let me be very clear: the integrity of our single market has been utterly destroyed.

Among the practical consequences of that are unimaginable levels of trade diversion. We were once a wholly integrated part of the United Kingdom. Once barriers are erected, trade is discouraged. Various surveys show that that has happened. From the Federation of Small Businesses survey, we know that 34% of GB companies that used to trade with Northern Ireland have ceased trading. Why? Because this paperwork and this checking is such a disincentive that it is not worth the bother.

This week, I received figures from the Department for Transport that I find quite astounding, and they make the point with great clarity of what it means to have had trade diversion. According to the Department for Transport, in 2022, 8.6 million tonnes of goods were distributed in Northern Ireland by GB-registered vehicles—in other words, GB haulage companies bringing goods into Northern Ireland. Last year, that figure fell to a staggering 2.2 million tonnes. In just four years, there has been a fall of 75% in the quantum of goods coming from GB to Northern Ireland by GB-registered vehicles.

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[The Minister for Science, Innovation and Investment (Chris McDonald)]

It is a pleasure to see you in the Chair, Dame Siobhain. I congratulate the hon. and learned Member for North Antrim (Jim Allister) on securing this important debate—its importance was reflected in the urgency and tone of his remarks. I thank him for his comments, particularly those on the importance of the Union, with which I agree.

That is why I would like to start by very much refuting the hon. and learned Member’s assertion that it is the policy of this Government to enable Northern Ireland to step out of the United Kingdom. I am sure that he does not fully mean that, although he is clearly very concerned about these issues of trade. I acknowledge those concerns, but the situation is more complex than his remarks have perhaps allowed for. Clearly, if there were a simple solution to this that would deliver all the benefits he has described for Northern Ireland, the Government would want to move to that solution, but it is more complex than that. Through my remarks, I will try to address the many points that he and other colleagues have raised, and I will perhaps be able to elaborate on some of that complexity.

First, I will address the hon. and learned Member’s point about unfettered access. The Government remain fully committed to unfettered access for qualifying Northern Ireland goods moving from Northern Ireland to Great Britain. I also want to be clear about the importance of the UK internal market and Northern Ireland’s place in that market. The Office for the Internal Market highlights the importance of the internal market and of the sales to the rest of the United Kingdom, equivalent to around a quarter of Northern Ireland’s economic output in 2021. In 2024, which is the last year for which we have published data, Great Britain accounted for 52% of Northern Ireland’s trade in goods, and that figure is broadly the same as it was in 2018, indicating the robustness of Northern Ireland’s place in the United Kingdom internal market.

[Jim Shannon]

Shops in Newtownards that have always bought their goods from a certain company across the water have been unable to do so because of the bureaucracy. By not being able to trade with that company directly, they are not able to offer the prices they once did. Nurseries and those that buy plants and seeds have also been restricted in what they do. DIY stores have been restricted by the bureaucracy and their ability to be competitive has been reduced. Has the Minister given any thought to that? I write to the Secretary of State for Northern Ireland regularly about these matters, although not to the Minister in particular, but has the Minister had a chance to understand the issues and problems that my businesses in Strangford are feeling?

[Chris McDonald]

I thank the hon. Gentleman for raising that. He raises concerns around bureaucracy and paperwork, essentially, for small businesses, and the hon. and learned Member for North Antrim mentioned our own House of Commons gift shop as well for low value items. I very much want to come on to this point in my speech, so I am grateful to the hon. Gentleman for raising it.

I will start by talking about the general performance of Northern Ireland trade with the rest of the United Kingdom. Northern Ireland’s goods exports within the UK and with the European Union have been strong. In fact, Northern Ireland’s exports to the European Union have outperformed the rest of the United Kingdom, increasing since 2019, whereas in the rest of the United Kingdom, exports have decreased in that period. It is therefore important to note that Northern Ireland does benefit from being a fundamental part of the UK internal market and having unique access to the EU single market. Of course, I do recognise—and the point was made by the hon. and learned Member for North Antrim—that this experience varies across sectors, companies and individual constituents, which is why this debate is so valuable. I will go on to talk more about that.

I understand the challenges around this, but public authorities have a statutory requirement to have special regard for Northern Ireland’s place in the United Kingdom internal market under section 46 of the United Kingdom Internal Market Act 2020. That guidance gives real statutory power to ensure that policymakers within the United Kingdom actively consider Northern Ireland’s place in the internal market when they are implementing the Windsor framework or making policy involving the movement of goods in the United Kingdom. Where that is the case, the statutory guidance ensures that those policymakers must have special regard for Northern Ireland’s place in the UK internal market.

Most importantly, one part of having special regard means the need to facilitate the free flow of goods between Great Britain and Northern Ireland, with the aim of streamlining trade between the two, and maintaining and strengthening the integrity and smooth operation of our internal market. The guidance ensures that policymakers must give that special regard considerable importance and weight above other factors in policymaking. That represents how this Government have implemented a key commitment in the “Safeguarding the Union” Command Paper published under the previous Government to ensure that proper process is in place to always consider both Northern Ireland’s place in the UK internal market and the flow of goods between Great Britain and Northern Ireland.

Members have spoken in detail about the Windsor framework and the challenges it brings. I would like to stress that the Government are wholly committed to the Windsor framework. The framework supports the peace and prosperity brought by the Good Friday agreement, one of the proudest achievements of our last Labour Government, and it plays a vital role in ensuring the smooth flow of goods between Great Britain and Northern Ireland, but of course I recognise the concerns raised by hon. Members.

It is clear that the Windsor framework is delivering benefits and smoothing the flow of goods between Great Britain and Northern Ireland. I have already noted how the Northern Ireland-Great Britain supply of goods has been maintained through the implementation of the framework. Over 15,000 traders are now signed up to the UK internal market scheme, and more than 1,100 operators are registered for the Northern Ireland retail movement scheme and the Northern Ireland plant health label. Northern Ireland traders are benefiting from these facilitations, and businesses are choosing to invest in the dual market access that Northern Ireland uniquely offers.

The hon. and learned Member for North Antrim is concerned about the level of investment and believes that businesses will not wish to invest in Northern Ireland for that reason. On my recent visit to Northern Ireland, however, I saw significant investment from Boeing, Airbus, Navantia and many other businesses. It is clear that this is not a uniform experience across all businesses, but it has been possible for Northern Ireland to attract significant inward investment.