European Union and United Kingdom flags

John Bruton, former Prime Minister of Ireland, in his article recently published on Oped Column Syndication, discussed a European Commission paper outlining preparations for a “No Deal” Brexit and its implications.

The paper emphasizes that EU member states will be crucial in enforcing EU laws concerning the UK as a third country, including necessary border checks and licenses. It warns member states against making bilateral agreements with the UK that could undermine EU unity.

Specifically, the paper acknowledges Ireland’s unique challenges post-Brexit and states the Commission is ready to support Irish businesses. However, it does not indicate that Ireland would be exempt from EU customs controls at the border with Northern Ireland, which contrasts with some Irish statements. The type of assistance the Commission can provide to Irish businesses remains unclear.

To aid preparations for the UK’s withdrawal, the Commission has released 78 detailed sectoral papers. These documents could provide valuable insights for businesses operating between Ireland and Northern Ireland. The proposed contingency measures will likely be temporary, extending only until the end of 2019.

In terms of air transportation, without an agreement, UK airlines may face significant disruptions due to a lack of traffic rights and invalid licenses. The Commission plans to propose measures to allow UK carriers to maintain some operations within the EU.

For road transport, UK hauliers would have restricted access, limiting the volume of traffic compared to current levels, which could severely affect Irish businesses reliant on UK transport. Goods moving between the EU and the UK would be treated as imports and exports, respectively, necessitating customs declarations and the payment of duties and taxes.

The paper reiterates that all EU customs regulations would apply, and there is no mention of exemptions for the Irish border. Member states are urged to be ready to implement the Union Customs Code and relevant taxation rules by March 30, 2019.

The Commission is also addressing issues related to financial services and residency rights for UK citizens in the EU. Additionally, it states that in a “No Deal” scenario, goods will undergo health checks at designated border inspection points, with responsibilities falling on member states.

Overall, the ambiguity surrounding the application of these measures at the Irish border poses challenges for businesses in their contingency planning.

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