UK to spend nearly $500m to ease Brexit red tape for N Ireland

The British government is setting up a Trader Support Service to help Northern Ireland firms handle import paperwork.

Irish border - reuters
The UK left the 27-nation European bloc on January 31 [File: Lorraine O'Sullivan/Reuters]

The British government will spend up 355 million pounds ($465m) to help businesses in Northern Ireland deal with the red tape caused by Brexit, according to officials.

Brexit’s supporters, including British Prime Minister Boris Johnson, say leaving the European Union will be a boon for the United Kingdom’s businesses.

Many economists are sceptical of that claim, and Brexit presents special challenges for Northern Ireland, which shares a border with EU member Ireland.

The United Kingdom left the 27-nation bloc on January 31, but it remains bound by the EU’s rules until the end of 2020, when a post-Brexit transition period expires.

The two sides are trying to negotiate a new trade agreement before the deadline, but remain far apart on key issues including competition rules and fishing rights.

The hard border

A withdrawal agreement between the two sides requires the all-but-invisible border between Ireland and Northern Ireland to remain free of customs posts and other barriers.

That means there will be new checks on goods moving between Northern Ireland and the rest of the UK.

The British government says these will be minimal, and is setting up a Trader Support Service to help Northern Ireland firms handle customs declarations and other paperwork involved in importing goods.

The government says it will commit up to 200 million pounds ($261m) for the service over five years, and will also spend up to 155 million pounds ($202m) on new technology.

Friday’s announcements also include 300 million pounds ($390m) for peace and reconciliation projects in Northern Ireland.

Many in Northern Ireland worry that Brexit could undermine the peace process that ended 30 years of violence, by hardening the border with the Irish Republic.

Source: News Agencies