Bananas could cost more in Northern Ireland than rest of UK after Protocol deal

 Brexiteers warn that incentive for smugglers is a ‘serious problem’ as they urge Rishi Sunak to dramatically reduce tariffs

ByJames Crisp, EUROPE EDITOR13 February 2023 • 8:07pm

Bananas could be more expensive in Northern Ireland than the rest of the UK when a deal is struck on the Protocol, Brexiteers have warned.

The Government is considering slashing UK tariffs on bananas from Peru, Colombia and Ecuador next year, which will make them cheaper.

But Brussels could insist that bananas sent to Northern Ireland from Great Britain pay a higher EU tariff if it deems them at risk of crossing into the Republic.

As expectation builds that a UK-EU deal is close, there are fears that bananas will cost more in Belfast than Birmingham, Bannockburn or Bangor.

“That’s a serious problem,” said David Jones, a former chairman of the European Research Group of MPs, “and it’s symptomatic of the problems that we’re getting with the Protocol.”

The Protocol gives Northern Ireland unique access to the UK and EU markets but it must follow hundreds of European rules.

British goods and animals are checked when they enter Northern Ireland to ensure that they meet EU standards.

The Irish Sea border prevents the need for checks on the land border with the Republic, which could put the peace process at risk.

Supermarket supplies to Northern Ireland are currently covered by a standstill agreement exempting them from any checks during the Protocol negotiations.

London and Brussels have already agreed a breakthrough agreement giving the EU access to real-time data on trade flows from Britain to Northern Ireland.

If Brussels sees evidence that Northern Ireland has become the backdoor for a flood of cheap bananas into the Republic, it could insist on the imposition of its tariff.

The fruit is far more likely to be deemed at risk if there is a big difference between the UK and EU tariff, which would provide an incentive to banana smugglers.

The Government followed Brussels’ system of progressive tariff liberalisation over a number of years with a standard rate of £62/1,000kg for bananas when it negotiated a roll-over trade agreement with the Andean countries to replace the EU deal it left after Brexit.

Negotiators are set to review the tariffs on banana imports next year. Brexiteers want Rishi Sunak to dramatically reduce or remove the tariffs and deliver a Brexit dividend they say would be impossible if the UK was still a member of the EU.

Brussels is unlikely to cut tariffs to that extent, in order to protect EU banana producers in the French regions of Martinique and Guadeloupe, the Canary Islands in Spain, and Portugal, Greece and Italy.

Fruit and vegetables moving from Britain to Northern Ireland have designated points of entry and must meet EU standards, under Protocol rules.

Red tape could hamper suppliers

The Government said its trusted trader scheme for Northern Ireland should spare bananas from the EU tariff, provided they were not deemed at risk.

“Generally, if goods are moved by a trusted trader into Northern Ireland, EU tariff rates should not be due,” a government spokesman said.

But Mr Jones said that any increase in red tape risked discouraging British exports to Northern Ireland and would encourage Northern Irish retailers to turn to Irish suppliers.

“If you have to comply with additional regulations, then it’s going to be less economical for mainland suppliers to supply goods to Northern Ireland,” he said.

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