Grocery retailers call for removal of GB-NI supply chain barriers

Six UK grocery retailers have written to Brexit minister, Lord Frost, and Vice President of the European Commission for Interinstitutional Relations, Maroš Šefčovič, calling for urgent action to address the future of GB-NI trade following the end of the Northern Ireland grace period in October.

From October, unless a solution is found, retailers will face increased cost and complexity when moving goods from Great Britain to Northern Ireland.

This is a result of increased checks at Northern Ireland ports, additional paperwork requirements, and the need for Export Health Certificates on products of animal origin.

Last year we warned that the UK would lose the right to sell sausages to the EU after Brexit - now that fear is becoming a reality.

Unless Govt and the EU compromise on trade rules for Northern Ireland, NI families face availability issues ahead.https://t.co/fCszemHDbu
— The British Retail Consortium (@the_brc) June 9, 2021

The challenges this will create in sourcing could force many retailers to move supply chains from GB to the EU, according to the letter from Asda, Iceland Foods, Marks and Spencer, Sainsbury’s, Tesco and The Co-operative Group.

While some actions have been agreed by both sides, such as a recent agreement on the extension to the grace period on the movement of chilled meats, the letter notes that “much more needs to be done before the end of September if there is not to be significant disruption to supply and an increase in cost for Northern Ireland consumers.”

It urges the UK and EU governments to enter discussions with British retailers, visit their supply chains and distribution centres, and host joint talks between government technical officials and retail supply chain experts to find a working solution for GB-NI trade.

It warns that “without swift, decisive, and cooperative movement on this issue there will be disruption”, calling on both officials to “help us to minimise this disruption and allow us to continue to provide the people of Northern Ireland with choice and affordability.”

Possible solutions include a veterinary agreement, a wider Sanitary and Phytosanitary (SPS) agreement, a facilitated movement scheme or a Trusted Trader scheme.

Helen Dickinson, Chief Executive at the British Retail Consortium, says: “The end to the NI grace period looms in the mind of every British retailer with supply chains in Northern Ireland.”

“If no action is taken, then it will be the people the Northern Ireland, with half of the discretionary income of GB households, who bear the brunt of this stalemate – meaning less choice and higher costs for essential food purchases.”

She adds: “Already, new red tape is causing delays, there are surging additional costs, and we are seeing challenges to ‘just-in-time’ supply chains.”

“Retailers have shown their compliance; the government and EU must now help us by removing the barriers to GB-NI supply chains.”