Recommendation 8

Businesses have faced challenges operating under the Northern Ireland Protocol which need to be resolved. Both the UK and EU have recognised that there are issues with the implementation of the Northern Ireland Protocol. The Cabinet Office told us that the results of its monitoring of the impact of the Protocol had been very concerning and had revealed considerable diversion of trade. The government is also concerned that the Protocol does not have support among significant parts of the Northern Ireland community. Although the UK government reserves the right to trigger Article 16 safeguards if required, it is seeking a comprehensive negotiated solution. The UK set out its proposed changes to reduce checks required under the Protocol in a July 2021 Command Paper and the EU has also put forward some proposals, including some new suggestions they had previously rejected. The two sides remain in negotiations. Recommendation: Government should continue its efforts to resolve the challenges of the Protocol and ensure that departments are ready to put any negotiated outcome into operation, and that it has prepared for any contingencies which may be required if an agreement cannot be reached between the UK and the EU. Alongside the Treasury Minute, it should write to the Committee to update on the state of negotiations and the operational implications. EU Exit: UK Border post transition 9 1 The impact of new border arrangements