Trade Diversion and Windsor Framework

Debate between Sammy Wilson and Jim Allister

Tuesday 4th March 2025 Commons Chamber

[Jim Allister]

In a moment, perhaps. I need to make sure I get through what I need to say.

It is beyond doubt, I would respectfully say, that there has been trade diversion. Back in September, the Road Haulage Association gave evidence to a parliamentary Committee of this House. It told the Committee that 30% of haulage lorries that take goods to GB are returning empty. Why? Because GB companies have stopped supplying. Now, that is an incredible thing to contemplate. Trade works on the basis that you take goods out, and then you fill your lorry and bring goods back. That is how you make it viable and how the economy works. That 30% of lorries now returning to Northern Ireland are returning empty is an incredible indictment of the operation of the protocol.

And things are getting worse. The EU regulation on general product safety now puts more burdens on companies selling into Northern Ireland, because they have to meet enhanced EU product safety regulations. I have mentioned the craft sector in this House before. Recently, 11 suppliers in that niche market stopped supplying Northern Ireland. It will get worse, because the partial border is coming and they will have to do more paperwork and make more declarations about sending simple parcels from GB to Northern Ireland. Tesco has slides that it shows to its own suppliers stating that they should now buy from the Republic of Ireland because it is easier to supply from there than from GB. The same is happening in veterinary medicines and in every sector.

Why does that matter? It matters for a very pertinent political reason. The whole idea of trade diversion and the whole purpose of the protocol was and is to build an all-Ireland economy: to dismantle the economic links between Great Britain and Northern Ireland and enhance links with the Irish Republic, thereby creating stepping stones out of the United Kingdom into an all-Ireland for Northern Ireland. That was the determination that lay behind the protocol.

We do not need a protocol to govern trade. It is demonstrable that if we can organise trade through Northern Ireland to GB without border checks in the Irish sea, and if, as the Government now say is possible, we can do it with checks away from the border, then equally we could do it in the other direction, through mutual enforcement. That would mean recognising that if we are going to export from one territory to another, our manufacturers must produce goods to the standards of the other, and we would enforce that by making it a criminal offence to do otherwise. That is the essence of mutual enforcement. It would work, but it is not allowed to work, because the political agenda of the protocol is to ensure this reorientation and realignment.

We are told that we now have Intertrade UK, but it has no staff and no budget, in comparison with InterTradeIreland, which has more than 50 staff and a budget of £6.5 million a year and is active across the whole area. Intertrade UK has been set up as a shadow, but it is not able to compete in any sense.

This Government have allowed the economy of Northern Ireland to drift out of the United Kingdom. I believe those who are protocol enthusiasts want that to happen. Now it is happening, the onus is back on the Government to do something about it.

[Sammy Wilson (East Antrim) (DUP)]

rose—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Before the hon. and learned Gentleman takes the intervention, I know that he was anxious about getting through his speech, but, because the Adjournment debate started early, he does have until 7.30 pm. [Laughter.] I believe he was about to take an intervention—does he want to continue with that?

[Jim Allister]

I will give way.

[Sammy Wilson]

You shouldn’t encourage him, Madam Deputy Speaker—he will take to 7.30 pm and beyond, because this is such an important subject.

Does the hon. and learned Gentleman agree that the diversion of trade has not only political but economic implications for Northern Ireland? There are increased transport costs, because lorries do not come both ways with goods in them; there is the fact that many people chose suppliers in England because they are cheaper, better-quality and so on, and now manufacturers in Northern Ireland are having to go to the second-best suppliers; and there is also the additional paperwork that is involved. That all adds to costs and makes the Northern Ireland economy less competitive, which therefore makes it more difficult for it to be viable.

--- Later in debate ---

[Jim Allister]

I agree. Let us just think about the Irish sea border. Given the infinitesimal amount of goods and trade that cross that border—infinitesimal when compared with the proportion of EU trade—it is incredible that it has 20% of all the checks across the whole of the EU. That infinitesimal amount when set against the totality of EU trade warrants 20% of all the checks in the EU. It would be easier to bring in goods from Belarus into the EU than it is to bring goods from GB into Northern Ireland.

[Sammy Wilson]

The hon. and learned Member talks about that trade being infinitesimal—0.4% of EU trade crosses that border, yet it accounts for 20% of checks. Does he agree that that will not be the story of the future? In my constituency, we are already building a £140 million EU control post on a 10-acre site. Once that is open, there will be much more scope to check goods to an even greater degree. If that is not the point of having such a large EU border post in the middle of the United Kingdom, what is?

[Jim Allister]

That is the point, because it is an EU border. EU trade laws govern the Irish sea border. EU officials, under the protocol, have the right to supervise checking. When we have the full panoply of facilities that are being built at Larne and at other ports, I fear that we will see the muscle of EU inspections. The protocol gives the EU, which boasted that the price of Brexit would be Northern Ireland, the upper hand in that regard.

I return to the point that the protocol is imbued with a political motivation, and that motivation is not to get Northern Ireland the best of both worlds. My goodness, what a con that idea is. The protocol was supposed to make Northern Ireland a Mecca, a Singapore of the west, but we now know that there has been no uplift whatsoever in foreign direct investment. Why? Because a manufacturer coming to Northern Ireland is interested not just in selling goods out of Northern Ireland, but in where it is getting its raw materials. When a manufacturer is told that its basic supply line has to pass through an international customs border controlled by the EU, the shine soon goes off the prospect of investing in Northern Ireland.

We are in a pretty dire situation, which is getting worse, and which has massive constitutional and economic implications, but I fear that the Government are deaf and blind to the issues, because they do not want to face the consequences. They are hand in glove with the EU, dismantling Northern Ireland’s place in the United Kingdom, and setting us on a course for the economics marrying with the politics, and Northern Ireland ceasing to be.

Scrutiny of European Statutory Instruments

Debate between Sammy Wilson and Jim Allister

Tuesday 11th February 2025 Commons Chamber

[Jim Allister]

Yes, and there is much talk about tariffs. Think of the conundrum that would be created if President Trump imposed tariffs on the EU. Northern Ireland, treated as EU territory, would, I presume, be subject to those tariffs, yet we are told that we are part of the United Kingdom. That is all because of the application to Northern Ireland of the customs code. If there were corresponding responses from the EU in that scenario, those would, under adjustments to matters arising under its customs code, apply to Northern Ireland it seems, and all without scrutiny.

While the establishment of this Committee, belated as it is, is welcome, it is important that we are able to understand that it will seriously address the scrutiny issues, as the previous Committee under Sir Bill Cash did. I pay tribute to him for the work that he did, but there has been this great gap in the meantime with effectively no scrutiny whatever. Now that scrutiny will be done by a Committee without, as I have said, a Northern Ireland representative even on it.

[Sammy Wilson (East Antrim) (DUP)]

Does the hon. and learned Member accept that even when we had the European Scrutiny Committee, which was able to deal exclusively with such issues, there were many EU regulations that it did not have the opportunity to discuss? Given the importance of such regulations not just to Northern Ireland but, as he pointed out, to the whole of the United Kingdom, does he agree that this leaves us vulnerable to detrimental changes in law that will not get enough examination in the House?

[Jim Allister]

Absolutely. There is a sheer volume of EU law that still applies in Northern Ireland. In annex 2 to the protocol, there are 287 such areas of law, and many have been added to it since. That breeds further regulation of a huge quantity, yet there is a lack of scrutiny.

The speed with which regulation is applied and the lack of opportunity for scrutiny is important. One of the complaints I hear from the Democratic Scrutiny Committee in the Northern Ireland Assembly is that it is not given the time or notice to deal with issues, even if there were the inclination among some to do so.

[Sammy Wilson]

It is even worse than that. On occasions, regulations have gone through and been adopted before the Committee knew they were there.

[Jim Allister]

Yes. The Cabinet Office undertakes to notify on a weekly basis, but I think that is honoured more in default than anything else.

From a scrutiny point of view, we are in a perilous position. I do hope that the Committee will grasp the issue and take it seriously. My only regret is there is not a Member from Northern Ireland on the Committee to hold feet to the fire. That goes to the heart of what should affect and concern us all as representatives.

I ask Members of the House who come from other parts of the United Kingdom how they would feel if there were 300 areas of law that they could not make or change and regulations—with votes on them—were not even being properly scrutinised. I think we know how others would feel. Frankly, we ask for nothing that others do not have for themselves.

European Union (Withdrawal Arrangements) Bill

Debate between Sammy Wilson and Jim Allister

2nd reading
Friday 6th December 2024 Commons Chamber

[Jim Allister]

I respectfully and utterly disagree. As part of the United Kingdom, we are all subject to the Human Rights Act 1998. The Human Rights Act is what fundamentally gives the hon. Lady’s constituents the rights that they have in that sphere, and she would lose nothing by losing the control of the foreign court of the European Court of Justice.

I am listing examples of the 300 areas of law that have been purloined by the EU in its sovereignty grab over Northern Ireland. I mentioned the 34 different diktats on animals. We have even reached the point in Northern Ireland where, under these arrangements, our cattle can no longer bear a UK ear tag. They now have to have a specified European Union ear tag. That is but an illustration of how absurd and utterly wrong and offensive it is that the right to make the laws in our own country has been surrendered to a foreign power.

All those 300 areas are set forth in annex 2 of the protocol or, as it is now more kindly called, the Windsor framework. Look at annex 2, look at the hundreds of laws—289 of them which now have been removed from the ambit of the lawmaking of this House or the lawmaking of the Northern Ireland Assembly.

[Sammy Wilson (East Antrim) (DUP)]

It is amazing to look at the volume of law: there are 70 pages containing not the details of the law but simply the headings of the law. That shows the extent to which the EU has its foot in the door in Northern Ireland.

[Jim Allister]

Absolutely. I printed them off a couple of months ago and I was staggered by how voluminous just the titles are. It is not just 300 laws; it is 300 areas of law which have been surrendered.

I have a challenge for every Member of this House who comes from a different part of the United Kingdom from Northern Ireland—those who represent GB constituencies. My challenge to them today is: “How would you feel if in 300 areas of law affecting your constituents, you had no input—you couldn’t change, you couldn’t move an amendment—because those laws were made colonial-like in a foreign Parliament by those elected not by your constituents but by the constituents of 27 other countries?” How, I ask this House, could any democrat, any representative MP, say that is right and correct?

--- Later in debate ---

[Jim Allister]

Maybe the hon. Member could help me. What would he call taking a territory and subjecting it to someone else’s laws? What would he call it other than colonisation? Is that not the very essence of what he and his colleagues wear as a badge of pride in their anti-colonialism? Is that not what it is in name and in truth?

[Sammy Wilson]

Does the hon. and learned Gentleman remember that in the Brexit negotiations those so-called allies made it clear that the price of Brexit would be Northern Ireland’s removal from the United Kingdom? Far from being allies, they declared themselves to want to be colonisers.

[Jim Allister]

Yes, that was the boast of Mr Barnier and his staff: that the price of Brexit would be Northern Ireland—and so it has proved to be. That may be something of indifference, or indeed pride, for some people in this House, but it should be a badge of shame that we allowed a part of the United Kingdom to be colonised by the EU, and that we have surrendered our rights to make our own laws.

--- Later in debate ---

[Jim Allister]

I absolutely agree. The fascinating point is the very concept was articulated from and originated within the EU itself.

During the early stages of the negotiations, Sir Jonathan Faull and academics Daniel Sarmiento and Joseph Weiler came up with that proposition. It is not my proposition. It is not a United Kingdom proposition. It was an EU proposition. They said the answer is mutual enforcement. Today we have a statement from those three gentlemen, which has been made public. It says, “On Friday of this week, the House of Commons will be debating a Bill which attempts to address some of the difficulties resulting from the Brexit divorce agreements between the EU and the UK, which might be of interest to readers. In 2019, we proposed a solution which would have obviated any need for these complicated and divisive legal manoeuvres. The UK and the EU could have respected each other’s positions and saved everyone a great deal of time and effort. The Financial Times characterised the proposal as a ‘win-win solution’. Regrettably, it was not followed.” I echo that: regrettably, it was not followed. Why was it not followed? Because the politics took over. Instead of looking for a workable, practical border solution, the politics of making the United Kingdom pay for leaving the EU took over. That is how we got into this morass of a pernicious imposition through the border.

[Sammy Wilson]

During the early stages of the negotiations, the permanent secretary of the then Brexit Department told the Select Committee that the Irish Government, before Leo Varadkar took over, were actually exploring those kinds of solutions. The politics of the changeover in the Irish Republic and the willingness of Leo Varadkar to become the puppet of the EU in these negotiations stopped that method of looking at the border.

[Jim Allister]

I fear that there is a lot of truth in that. As I say, the politics took over. A further truth is that for some—not all, but some—enthusiasts of the protocol arrangement of a nationalist or Irish republican persuasion, there is a political gain that subsumes all doubts that they might have as democrats. For 30 years and more, the IRA terrorised through bomb and bullet to try to push the border to the Irish sea: “Brits out—push the border to the Irish sea!” That is precisely what the protocol has done: it has pushed the border to the Irish sea.

Windsor Framework

Debate between Sammy Wilson and Jim Allister

Tuesday 19th November 2024 Westminster Hall

[Jim Allister (North Antrim) (TUV)]

I beg to move,

That this House has considered the Windsor framework.

When the Windsor framework was introduced, it was the original protocol by another name, because it made no substantive changes to the original text. It was portrayed, sold and packaged as a tremendous opportunity for Northern Ireland. Some time later, we even had the President of the United States, President Biden, talk extravagantly about $6 billion of awaiting investment in Northern Ireland. We had acolytes of the Government talk about Northern Ireland becoming the Singapore of the western hemisphere, and it seemed that no boast was too large to make.

The reality is very different, however, and matters rather came down to earth with a bump just a couple of weeks ago, when Invest Northern Ireland representatives appeared before a Stormont Committee. Remember that the Windsor framework was supposed to unleash an avalanche of foreign direct investment into Northern Ireland because—we were told—our access to the single market of the European Union was the panacea for all things economic. The witness from Invest NI had to confess that there would be no uptake in foreign direct investment, and the framework was not producing the results that were claimed.

There is a very simple reason for that: the counterbalance to accessing the European single market is the fettering of our links to our GB supply market. In order to have that access to the foreign single market of the EU, we had to subject ourselves to EU law. Its customs code says that, with GB not being in the EU but Northern Ireland being treated as an EU territory, GB has to be regarded as a foreign country, hence the erection of the obnoxious border in the Irish sea for the bringing of goods from GB to Northern Ireland. The counterbalance to that alleged wonderful access to the EU single market was the building of a border to fetter trade from GB, and that is why the framework has not produced that magical foreign investment. Anyone looking at investing thinks about not just where they will sell their goods, but where they will get their raw materials from. If the raw material supply line is fettered by an international customs border governed by foreign law—and that is what it is—they are going to think twice about that, and obviously they have thought twice. All the proposals and packaging largely turned out to be insubstantial spin.

[Sammy Wilson (East Antrim) (DUP)]

The boast was that Northern Ireland would have the best of both worlds—the European market and the UK market. Would the hon. and learned Member accept that all the evidence says that, even apart from just the undemocratic nature of laws being imposed on us, businesses are facing huge tax burdens, where they have to pay taxes and then claim them back? They have been shut off from their markets and cannot get supplies, and there are still many sectors of the economy that cannot get supplies from GB.

[Jim Allister]

It has infected every sector, and none more so than the farming sector, which is topical today. Northern Ireland’s veterinary medicines are now under the regime of the EU, and we are facing a cliff edge in that regard—there could be a cut-off of supply from our primary market of veterinary medicines very shortly.