Despite these assurances and other legal guarantees from the EU, the House of Commons rejected the agreed compromise package three times (on 15 January, 12 March and 29 March 2019). If the EU and the UK fail to reach an agreement on their future relationship by the end of the transition period, ensuring that there is no border between Ireland and Northern Ireland, the “Northern Ireland Backstop” will enter into force. In this case, Northern Ireland will be part of the UK customs territory, but it will continue to be adapted to a limited scope of EU rules, in particular as regards goods. Trade in goods will be affected. There will be regulatory controls on goods that will take place at the point of entry into Northern Ireland from the Uk and not across the land border between Northern Ireland and the Republic of Ireland. In addition, the UK will impose UK tariffs on products from third countries as long as those goods entering Northern Ireland are not at risk of entering the EU`s single market. This applies both to goods travelling from Great Britain to Northern Ireland and directly to Northern Ireland. However, the UK will apply EU tariffs to goods at risk of entering the single market. This is obviously an extremely complicated issue, as we have a limited understanding at the moment of how the issue of entry into the single market will be determined or what steps the UK will take to apply EU tariffs in this case, and what could happen if the goods actually remain in Northern Ireland.
Under the agreement, an EU-UK Joint Committee will shed more light on these issues at a later stage. However, trade in services with the EU must operate in accordance with WTO rules. Under WTO rules, the specific impact on companies varies depending on the sector in which they operate. In some sectors it will be limited to no changes, while in other (usually highly regulated) sectors there will be additional requirements and standards and even a ban on the provision of certain services between the EU and the UK. If the UK is due to leave the EU on 31 October with a deal, the withdrawal agreement must be ratified by both the UK and the EU. Ratification by the United Kingdom requires the approval of the VA and the by the House of Commons and the adoption of legislation transposing va into British law. .
