How optimistic are you that Irish businesses and Ireland's economy can continue to grow beyond Brexit?
Since the UK’s decision to leave the European Union, Irish exports to other markets within the EU and beyond have continued on an upward trend. The full impact of Brexit will not be known until after it occurs, however it is important for Irish businesses to act now in order to be in a position to continue to grow beyond Brexit. This is not without its challenges but opportunities will continue to present themselves, either through diversification, increased foreign direct investment or through a continued trading relationship between the EU and the UK which will be beneficial for businesses in Ireland.
Why is it critical for Irish businesses that there is no hard border?
Trade on the island of Ireland has benefitted significantly from the seamless movement of people, goods and services. There are many sectors where raw materials originate from one area and are processed in another. A customs border has the potential to impact negatively on investment, jobs and trade on the island of Ireland as it will mean more costs to business, in terms of customs and tariffs and increased costs of administration. Unless there is regulatory alignment, a border will have a negative impact on the movement of livestock which has the potential to be a huge issue. There is also a huge psychological impact of a border on the island of Ireland but there is a huge difference between a customs border and a security border and that distinction appears to be lost in some of the debate.
Can technology really solve the problem?
There are differing views on this and the fundamental problem is that we don’t know the criteria for a border in the first place. At the moment we seem to have a problem for every solution.
If a solution was found to this dilemma;
1) What are the key aspects that are likely to change, that will impact Irish businesses most?
If a solution was found to this ‘dilemma’ it would seem that the status quo should be capable of remaining, subject to any future regulatory divergence between the EU and the UK, and how this would be dealt with in the context of cross-border trade.
2) What key benefits, if any, are there for international businesses locating here, given that two economies are operating on one island?
Ireland has an excellent track record of attracting foreign direct investment and has become one of the world’s leading destinations for the technology and pharmaceutical sectors, amongst others. The benefits of international businesses locating here will remain post Brexit, including access to a high quality talent pool, access to the single market, our corporation tax regime and many other factors which have led to leading international companies investing in their Irish operations for the long term.