The British Irish Chamber of Commerce and financial services advisory firm BDO have said that predictions of falling business between the UK and Ireland are "considerably overstated" and that normal volumes of trade will return this year.
Speaking at ACCA's Business Leaders Forum event, both John McGrane, Director General, British Irish Chamber of Commerce, and Carol Lynch, Partner, BDO agreed that the UK is and will remain a key trading partner for Ireland with businesses rebounding as they adapt to the new arrangements.
They point to new statistics issued by the CSO which confirms that Irish exports to Britain have risen by 13% in March compared with the same month in 2020, following a fall in the first two months of 2021.
While there remains a fall in imports, Mr McGrane and Ms Lynch say this is can be attributed to the shutdown of the economy as a result of Covid and the steep learning curve from implementing the new customs and agricultural controls from 1 January.
Having worked closely to help businesses adapt throughout the Brexit process, both trade professionals recognised that it has been a challenge for companies to acclimatise, but with streamlined processes in place, they expect that close to normal levels of trade should resume as the economies in both countries re-open and import/export requirements move to being business as usual.
"The depth and respect of relationships, consumer preferences, market knowledge, geo-cultural synergies, trust in supply chains that have grown over decades will not be eroded because of Brexit," said Mr McGrane.
He added that there is a determination and will from Irish businesses to overcome the hurdles, as they know the importance and significance of exporting to the UK market.
Carol Lynch of BDO said the fall off in trade in the first quarter of 2021 was expected, with many businesses stock piling in anticipation of disruption.
"When combined with the closure of the UK and Irish retail and hospitality sectors for most of the year, the drop in imports and exports does not paint the full picture," she said.
"It will never be as easy to import or export to/from the UK as it was in the past, and as a result, sales to and purchases from mainland Europe will likely grow as it presents a less bureaucratic market for companies to operate in, however all economic studies show that countries always tend to trade most with their nearest neighbour," she added.
Caitriona Allis, Head of ACCA Ireland said it is crucial for our economy that Ireland maintains trade with its nearest partner in the UK.
"Nevertheless, there are still very real impediments including increased documentation, customs checks and regulatory burden costs which are all adding to the complexity of importing and exporting between Ireland and the UK.
"With support, businesses can and will overcome these trading challenges and we look forward to a positive and prosperous trading relationship with the UK in the years ahead," she said.
