Question

The government of the United States is considering revising the North American Free Trade Agreement (NAFTA), which could imply a possible departure from the agreement. For its part, the United Kingdom is in the process of leaving the European Union (BREXIT). Explain the implications of these changes in regional agreements in multinational companies.

Answer 1

Unquestionably the UK’s EU withdrawal will impact upon Northern Ireland’s domestic legislation. The UK government’s current legislative proposal has been described as a ‘Great Repeal Bill’. 5 This will overturn the European Communities Act (1972) which allowed the UK to join the (then) EEC and enshrined the supremacy of EEC/EU law. Such a bill intends to place initially into UK law vast amounts of EU law, with these items then considered on a case-by-case basis for possible repeal. Many of these legislative items will impinge upon the domestic arena in which the Northern Ireland Assembly is autonomous. As noted, ‘a range of competences currently shared between the devolved legislatures and the EU will revert to the former unless Westminster legislates to take them back to itself… Any effort to bring them back to Westminster would meet strong political objections … There are also financial implications, as the monies previously coming from the EU to finance these policies in Scotland, Wales and Northern Ireland will have to be diverted to the devolved administrations’.6 Given the range of its competences affected by a ‘Great Repeal Bill’, a case can be made that Northern Ireland Assembly consent ought 583 116 to be forthcoming for the passing of any overarching repeal bill. Far more likely is that the Assembly will be left to unpick those items of EU-derived legislation it wishes to overturn. Legislative consent for repeal of EU law relating to Northern Ireland will apply only to those aspects of legislation a) over which the Northern Ireland Assembly has competence, i.e. the Assembly has devolved powers in that area, and b) wishes to repeal or amend. Northern Ireland is reliant upon the UK government acting as a satisfactory custodian for its perceived interests in EU withdrawal negotiations. The Secretary of State for Northern Ireland will only be involved in the Brexit Cabinet Committee ‘as required’. 7 The Joint Ministerial Committee is the normal mechanism for liaison between the devolved administrations and the UK government but a new Joint Ministerial Committee on EU negotiations has also been created, to allow those devolved executives more focused input. Ultimately however, the interests of the devolved administrations will be filtered through the UK government.