A new report on the Changing Nature of Trade reveals the resilience, concerns and opportunities facing businesses trading across the island.
Commissioned by InterTradeIreland, the all-island economic development agency, and carried out by professional services firm EY, the independent report is the culmination of five months of research and contains actions to assist businesses across the island.
The in-depth report also analyses how global and domestic developments, including Brexit, and external shocks such as the pandemic and conflict in Ukraine, have transformed the current trading landscape - benefitting certain sectors and creating new challenges and opportunities for businesses in Ireland and Northern Ireland.
InterTradeIreland is delighted to have contributed so significantly to the increase in cross-border trade between 2016 and 2022. While the report outlines some challenges, more importantly it also offers recommendations which we will work to implement with our partners. The research will ensure that information available to businesses across the island continues to be timely, easily understood and that free technical support is available to help build skills within businesses to grow their exports. InterTradeIreland’s Trade Hub is one such exemplar model of support which we will continue to develop, it has already helped thousands of businesses to easily adapt to changing trade circumstances.
Colin McCabrey, Director of Trade at InterTradeIreland
While the research highlights that total cross-border trade has grown significantly between 2016 and 2022, the report found a number of obstacles for business that are hindering some long-term business strategies. This includes concern over logistical complexities.
The report emphasises the need for collaboration and support across the island to help businesses to address these challenges. Its recommendations include:
- More cross-border collaboration to ensure alignment on trade policy and messaging
- Targeted assistance for sectors most affected by trade changes
- Jointly promoting the benefit of Northern Ireland’s dual market access to attract international investment onto the island
I am heartened to see the resilience and innovation of the north’s businesses come through in the data of this research report. It shows that North South trade has grown by almost 80% in recent years and that easier trade and worker mobility benefits everyone on this island. I am committed to ensuring this organic growth continues and that businesses are fully supported to take advantage of our strategic trading position and unique ability to trade goods with both the EU and British markets. It’s in our mutual interest to collaborate and open our society up to commerce and innovation. My department will continue to work closely with InterTradeIreland, Invest NI, and our southern counterparts to help businesses navigate this changing landscape.
Caoimhe Archibald MLA, Minister for the Economy
I welcome this report commissioned by InterTradeIreland and carried out by EY. We know that over the last number of years businesses have faced a number of challenges, including inflationary pressure. However, the cross-border economy has continued to go from strength to strength during that time, highlighting the importance of supply-chains on the island. We will work with our partners, including InterTradeIreland to continue to support businesses to access the cross-border market to accelerate economic growth.
Niamh Smyth TD, Minister of State for the Department of Enterprise, Tourism and Employment
At a time of unprecedented geopolitical change, this research is very timely to identify how trade patterns are changing, how resilient businesses have been and what challenges they are facing. We have made a number of recommendations which would help to support those businesses as they continue to develop cross-border trade.
Simon MacAllister, EY Ireland Strategy and Transactions Partner
To read the report, please visit The changing nature of trade on the island of Ireland
