EU Parliament committee backs Brexit trade deal

The European Union Parliament committees have backed the new Brexit trade deal between the 27-nation bloc and the UK pushing it onward to the full legislature for a final vote expected later this month.

Northern Ireland

The news in recent weeks has been dominated by the Northern Ireland (NI) border discussions.

Last month a meeting of the EU-UK body overseeing the NI Brexit arrangements and aimed at resolving issues with the Irish sea border has had mixed reactions amongst NI politicians. No change was reported in extending the request by the UK to extend the border grace period, due to end in April. The UK and business groups have asked the EU for an extension until 2023.

The UK has delayed some Irish Sea border checks without EU agreement and the UK and EU have agreed to intensify talks following a recent meeting of negotiators.

One of the key problems is the check on food and agricultural products entering Northern Ireland and the UK rejects the idea of aligning to EU rules on plant and animal health measures. The UK continues with its “Trusted trader” agreement to reduce border administration controls on traders who have a secure audit trail on their supply chains. We will have to wait and see where the negotiations lead.

Financial services

Reports this week show that many banks and financial institutions have moved thousands of jobs and £1 trillion of assets (approximately 10% of total assets in the UK banking system) out of the UK and into the EU because of Brexit.

Banks, insurers, pension funds and wealth managers had hoped that the UK would secure access to the EU, but the Brexit deal does not cover financial services, one of the UK’s most important industries, and the EU has not yet granted the UK financial services industry “Equivalence”. Equivalence is a system which can be used to grant domestic market access to foreign firms in certain areas of financial services. It’s based on the principle that the countries where they are based have regimes which are ‘equivalent’ in outcome. The EU has not yet reached a decision regarding the UK and requires more information on what the UK will be doing in the future.

Traffic management measures in Kent stood down as trade returns to normal

The government has announced that the Kent Access Permit (KAP) and the M20 moveable barrier will be stood down from 20 April, as delays have been prevented thanks to hauliers arriving at the border prepared.

This comes as freight volumes between the UK and the EU continue to operate at normal levels, with the latest data showing a 46% increase in exports in February. KAPs have been instrumental in avoiding delays at the border, by ensuring that HGV drivers have the correct paperwork before setting off and allowing them to move quickly through the UK’s ports.

Compliance with the KAP obligation from industry has been consistently high, tracking at more than 80% since the middle of January for non-GB hauliers, while the latest data shows the average compliance with the KAP obligation is at 86%.

The removal of the KAP on 20 April will mean less paperwork for hauliers, making it quicker and easier to cross the border, further supporting the already smooth flow of goods from the UK into Europe.

The Kent Resilience Forum has also announced plans to stand down the moveable barrier on 24 April. Specially designed to allow traffic on the M20 to continue in both directions.

Hauliers will have continued access to support on border requirements at any one of 46 information and advice sites across the UK, with the busiest sites remaining in place until at least August. So far, sites have proven to be extremely popular, helping to prepare more than 200,000 hauliers adjust to new border requirements since first opening in November 2020.

We will keep you informed of any further developments in negotiations and changes as they arise.