CROSS BORDER TRADE Undoubtedly there will be custom-related bills to pay regardless of how amicable a departure we have because ultimately NI will be a third country trading with the EU and ‘somebody is going to have to take the hit’ said Mr Magennis. The physical challenge of a border is one of the biggest talking points. With Northern Ireland being the only part of the UK to neighbour EU landmass this becomes more political.
Eoin Magennis
Aidan Gough, Strategy and Policy Director at IntertradeIreland, which supports SMEs with cross border business funding and advice, agrees and urges those involved in cross border trading to engage in talks and seek support. “Yes, there is a lot we don’t know just now – but there is also plenty that businesses can be doing to identify their areas of risk and opportunity post Brexit,” he said. “Planning can begin with basic questions around the freedom of movement of goods, services, people and how that impacts a business. “In answering these questions entrepreneurs will identify solutions and new opportunities may also emerge,” he added. InterTradeIreland’s new Brexit Advisory Service aims to help with this process and ‘the next step is to act, or at least to prepare alternative scenarios and actions depending on what emerges from the negotiations’ said Mr Gough. “Innovation, the application of lean techniques and diversification are just some options to build higher margins within a business model.” he continued.
WORKFORCE Migrant workforces, a physical border and tariffs are among the biggest concerns for those exporting to ROI. “Additional costs (to the current position) will potentially occur in areas such as customs
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processes, standards, country of origins proofs, etc, similar to what NI exporters trading outside the EU currently have to factor in,” forecasted Mr Magennis.
Mr Magennis believes this is a matter for the politicians given the sensitivity of the issue. He said: “I do think that’s the realm of politics. I don’t believe seamless or frictionless is possible.”
“What these look like will greatly depend on the outcome of the current talks. “Areas where businesses may be exposed to additional costs include the imposition of tariffs in the event of a ‘no deal’ scenario – but it’s important to remember that for 30% of the products traded across the border the tariff will be 0% and for more than 4/5th of products the tariff is less than 10% - but it can vary considerably so we would encourage businesses to find out what the tariff on their products would be if trading under WTO tariffs. InterTradeIreland’s Brexit Advisory Service offers this as a free service to SMEs,” added Mr Gough.
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Yes, there is a lot we don’t know just now but there is also plenty that businesses can be doing to identify their areas of risk and opportunity post Brexit. Aidan Gough
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Aidan Gough
Mr Gough continued: “The political will to maintain an open border appears to exist on all sides of the negotiating table. Whether a soft border results however depends greatly on the actual trade deal to be struck between the UK and the remaining EU member states. “It is of course difficult to imagine a soft border under a ‘no deal’ scenario which is why for Northern Ireland a deal will be important to a continued positive trading relationship with our nearest neighbours in Ireland.” ■