The European Union’s General Product Safety Regulation (GPSR), which came into effect on December 13, is prompting some mainland U.K. businesses to halt sales to Northern Ireland and EU countries. The regulation introduces new compliance requirements, including the need for a “responsible person” or agent based in Northern Ireland or the EU, a stipulation that is particularly burdensome for small and medium-sized enterprises (SMEs).
Brexit’s lingering impact on trade
The GPSR adds another layer of complexity to the trade landscape shaped by Brexit. Northern Ireland, while part of the U.K., operates under unique trade arrangements due to its shared border with the Republic of Ireland, an EU member. The Windsor Framework, implemented in October 2023, established an Irish Sea trade border to maintain seamless trade between Northern Ireland and the EU. However, this framework, combined with the GPSR, has created significant challenges for Great Britain-based businesses, especially those without a physical presence in Northern Ireland or the EU.
Call for government support
The Federation of Small Businesses (FSB) is urging the U.K. government to provide enhanced export support to help SMEs navigate these new regulations. The GPSR, designed to enhance consumer protection in the era of online commerce, has inadvertently placed a disproportionate burden on smaller firms, many of which are now reconsidering their ability to trade across these borders.
The GPSR highlights the ongoing complexities of post-Brexit trade for U.K. businesses. While the regulation aims to protect consumers, its implementation underscores the need for tailored support for SMEs, which are vital to the economy. For supply chain leaders, this serves as a reminder of the importance of adaptability and proactive compliance strategies in an evolving regulatory environment. The impact of these changes on global trade is yet to be fully understood.
