Business First December 2017 December BF Digital | Page 22

THOUGHT LEADERSHIP
Maintaining close bond of UK and Irish
businesses is ‘imperative’ post Brexit
By Ian Sheppard, Chairman, Institute of Directors (IoD) Northern Ireland
he ‘soft’ boundary between Ireland and
Northern Ireland is the sole land
border between the EU and the UK.
In many ways, the border is arguably the
most obvious example of deep economic and
trade integration between the UK and the
EU.
However, the future of the relationship
between the two regions is now uncertain
due to Brexit. The UK has voted to leave the
European Union but – publicly at least – it
isn’t clear how it will leave.
Many would argue that the most material
impact of Brexit will be on the border
between Ireland and Northern Ireland. Each
region is deeply economically integrated into
the other.
The 499km land border between the UK
and Ireland has historically been an open
one with 30,000 people crossing the border
each day.
Economic and trade links between Ireland
and the UK account for €60 billion (£54bn)
annually and supports 400,000 jobs.
The business community believes it is
imperative to maintain this close bond for
trading purposes.
Almost one­third of IoD UK members have
business links (including supply chains, sales
and employees) with Ireland, while three­
quarters of IoD Ireland members have
business connections with the UK.
The significance and value of the special
relationship – and the importance of it for
both sides – is clear.
The Article 50 negotiations may be the
most complex trade talks ever carried out
and the dealings between the two sides have
proved tense on more than one occasion.
However, it is encouraging that both
parties have expressed the need for flexible
and imaginative solutions for this difficult
aspect of the talks.
Irish Prime Minister Leo Varadkar has
called for “unique solutions” to the border.
Still, talk of a ‘no deal’ scenario persists, an d
the Government has been unable to provide
clarity on whether or not it has indeed
budgeted for this consequence.
Promisingly, the UK and the EU have
similar objectives that guide their work on
this issue.
In their respective documents explaining
their approach to the Irish border, the UK
and the EU have cited protecting the Good
Friday Agreement, maintaining the Common
Travel Area and avoiding a hard border
T
Almost one-third of IoD UK members
have business links (including supply
chains, sales and employees) with Ire-
land, while three-quarters of IoD Ire-
land members have business
connections with the UK.
20 www.businessfirstonline.co.uk
between Northern Ireland and Ireland are
common goals. Furthermore, each side has
recognised the soft border between Ireland
and Northern Ireland has played a critical
role in economic prosperity and security in
the area.
It is for this very important reason that the
unique relationship should be preserved.
Supporters of free trade would
undoubtedly be pleased with a barrier­free
border between the UK and Ireland; some
might reason that Brexit means Brexit.
There are of course practical questions of
how a ‘frictionless’ border can be so, but
there are also ideological questions, such as
whether having a seamless border is in fact
congruous with the democratic vote to sever
ties with the EU.
EU chief negotiator Michel Barnier has said
unequivocally: “Frictionless trade is not
possible outside EU rules”.
The unique case of the UK and Ireland
border means there is no precedent that can
serve as a possible model for a solution.
At this stage of the negotiations it’s safe to
say that if there was an easy way to resolve
the Irish border question, the talks would
not be so difficult.
In view of developing a solution, it is
helpful to deduce what we do want from the
future British­Irish trading relationship.
With everything up for negotiation,
economic ties between Ireland and UK
should remain as open as possible after
Brexit.
Without this pledge, firms in Ireland would
have the capacity to trade freely with
countries as far away as Canada, but not
with their nearest neighbour just across the
border. Indeed, if this were to happen there
would be dire consequences would for trade
and employment in Northern Ireland.
At this confluence in the British­Irish
relationship, the IoD calls on the UK and the
EU to ensure trade after the UK has exited
the EU is as barrier­free as possible.
As we edge ever closer to the March 2019
deadline, the business community is itching
to see what economic ties will look like in a
post­Brexit world.
While this may prove an incredibly
complex and challenging task for
negotiators, the IoD is pleased to work with
policymakers to ensure this happens.
It is our view that long­term prosperity
and economic success is one objective that
all sides can agree on.