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British Irish Chamber | feature
Trade ties bind Since the formation of the state, Ireland has always maintained a close relationship politically, socially and financially with its nearest neighbour, the United Kingdom. Now, with many businesses trying to find their way out of financial straits, the trade relationship between the two countries is as important as ever. Colm Gorey reports.
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ineteen-seventy-three was a pivotal year for both Ireland and Britain as their acceptance into the European Union (EU) changed not just their position in Europe as a whole, but how the two countries engaged in trade, business and finance. Previously, trade and finance between the two nations had remained tightly interconnected, with Ireland importing many goods from Britain as well as exporting high-quality agricultural products to its neighbour. With membership of the EU however, came
further opportunity for both countries to trade with other European nations. Recent figures released by the Central Statistics Office show that over the last two years, despite a marginal dip, imports and exports between Ireland and Britain remain tightly knit. However, what is clear is that Ireland still relies heavily on Britain for its goods, especially when you consider the number of UK-based stores – such as Tesco and Marks and Spencer’s – that have established themselves here. In January 2013, 26 per cent of Irish
exports went to Britain, down from 28 per cent the year previous. Meanwhile, British exports to Ireland accounted for a massive 47 per cent of Ireland’s imports, down from 51 per cent for the same period in 2012.
A change of focus While trade relations between Ireland and Britain have remained strong despite political tensions in the past, what is most interesting about the current focus is how it has shifted from the traditional areas of agriculture and InBusiness | Q1 2013 15
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