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Irish exporters preparing for no-deal Brexit scenario

irish exports, irish exporters
irish exports, irish exporters
irish exporters association CEO Simon Keever

Simon McKeever

CEO, Irish Exporters Association

Irish companies continuing to deliver one of the highest exports around the world. 2017 marked yet another record year for the Irish exporting industry with Irish goods exports exceeding €122 billion.


The Irish exporting industry continues to be experiencing strong growth. However, there is concern over an increasingly uncertain global trading environment. Similarly higher operating costs and the perpetually impending impact of digitalisation. These pose a number of challenges for exporters and their supply chains.

Irish exporters are building a no-deal Brexit contingency

The UK’s withdrawal form the EU is the underlying challenge for this. We cautiously welcome the recent draft agreement by UK and EU negotiators on the Withdrawal Agreement. We also accept its proposals for a Single Customs Area and close alignment of legal and regulatory standards. In light of the UK’s internal political challenges, Irish exporters, however continue to step up their no-deal contingency planning.

Its proposals for a Single Customs Area and close alignment of legal and regulatory standards are also accepted. In light of the UK’s internal political challenges, Irish exporters, however continue to step up their no-deal contingency planning.

In particular, contingency planning revolves around critical access to warehousing space. This includes alternative transport and shipping routes to the European continent. Moreover, customs declarations for UK-Ireland trade expected to increase ten-fold. This will mean serious implications on just-in-time supply chains. Furthermore, a no-deal scenario is expected to be extremely detrimental to Irish manufactures and supply chains.

Storage space is crucial to the post-Brexit supply chain

Availability and access to sufficient warehousing / storage is critical to the success of many exporting supply chain businesses. There is a move towards building new warehousing space. However, current and post-Brexit mitigating demand already greatly exceeds the supply available. For those considering increasing their capacity, knowing whether or not to press the investment button (in the light of increased uncertainty) is a very unenviable choice to make. This is especially true for cooled and controlled handling facilities at Irish sea and airports.

Barring any significant developments in the Brexit process, the UK will become a third country to Ireland and the EU. This includes for any and all aspects of trade and customs procedures at the end of the transition period.

It is clear that the Irish business community is taking note. We have seen unprecedented interest in customs-training, AEO trusted trader status and alternative goods routing to the European continent.

Germany, France and Spain are most sought-after European export markets

In addition, IEA members are already strongly looking to access new exports markets. Germany is often cited as the top destination for diversification with other EU markets featuring prominently. France being third with 23%, Spain fourth at 19% and the Netherlands, Belgium, Italy and Sweden all appearing in the top-10. We are also seeing growing interest in English-speaking markets with the USA (27%), Australia (17%) and Canada (16%) all gaining popularity as well as high growth markets like China (10%), Japan (8%) and ASEAN nations (8%).

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