The EU has commenced legal proceedings against the UK after the government refused to halt its plans for the Internal Market Bill to become law, which will give ministers the power to override the Northern Ireland Protocol which forms part of the EU Withdrawal Agreement. Despite these developments, the bloc has not walked away from the negotiating table and a free-trade agreement could still be struck this month. As the row over the legislation goes on, manufacturer Melba Swintex has already been hard at work to protect itself from the complications that could arise from a no-deal scenario.
An EU deadline for the UK government to remove sections of the Internal Market Bill expired on Wednesday, with MPs approving the bill at its third reading earlier this week after the government agreed to give Parliament a vote of consent before the bill’s powers could ever be invoked. It will now go to the House of Lords where it must receive approval before becoming law.
In response, European Commission president Ursula von der Leyen revealed that a “letter of formal notice” was being sent to Westminster to start infringement proceedings, which could culminate in a case against the government at the European Court of Justice.
She said that the legislation was a “full contradiction” of the UK’s commitments to avoiding a hard border on the island of Ireland as outlined in the Withdrawal Agreement and was a “breach of the obligation of good faith”.
However, the EU has remained at the negotiating table as both sides seek to come to an agreement on a free-trade deal this month, with Von der Leyen warning that the UK has until the end of November to respond to the EU’s concerns over the bill. Trade negotiations are continuing in Brussels this week.
A UK government spokesperson has since said that the Internal Market Bill provides a necessary “safety net” in the event of a no-deal scenario to keep trade flowing between Northern Ireland and Great Britain, and that Westminster would respond to the EU’s letter “in due course”.
While uncertainty remains, businesses that import and export materials and products have had little alternative but to plan for a no-deal scenario in the worst case, and Bury based plastic moulded products manufacturer Melba Swintex has been hard at work on its own preparations.
Indeed, its board of directors has long held the view that business has a duty to navigate difficulty and uncertainty that may arise beyond its control.
Writing in The Parliamentary Review about the steps that the business has taken in preparation for Brexit, managing director J.G. Dawson said: “In anticipation of leaving the European Union we are sourcing more of our material within the UK and reducing imports from our previous European suppliers. This protects us from currency fluctuations and the unknown tariffs that maybe applied in future.”
Dawson and his fellow directors believe that with government assistance and a more focused approach on export, UK SMEs can still look forward to much success in international markets.
Dawson explained: “With a focused approach on exports and adequate resources both internally and through government assistance, the UK’s small and medium size businesses should be able to achieve significant growth in international markets in the years ahead.
“Regardless of political tumults, we will ensure that continuing in this direction is a top priority for us, with a view to achieving yet more growth. Business, after all, is all about navigating around difficulty and uncertainty.”
