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Study says the border region will be significantly impacted by Brexit

A report produced by 11 local authorities along the border between Northern Ireland and the Republic of Ireland shows that the economy of the border region will be significantly impacted by Brexit. The study says that the border region already suffers problems such as productivity and lower incomes and these issues could be worsened on Brexit.

The research showed that there are around 87,000 businesses operating in the border region and approximately 40 percent of these are in the agricultural sector. The report does suggest that this figure could be higher as it doesn’t take account of the self-employed working in the region in the agricultural sector.

Goods traded cross border total over €3 billion and while only 2 percent of the Republic of Ireland’s total exports go to Northern Ireland, the report shows that for businesses operating in the border region this cross border trade is vital. Trade in agri-food is particularly critical to the region and the report states that if tariffs were to be imposed, cross- border trade in this sector could fall by as much as 9 percent.

The report says that both Northern Ireland and the Republic of Ireland “continue to be dependent on a small number of markets. Part of this is due to geography and history – thus the British Isles remains the key market for most businesses located there.”

To encourage market diversification in light of Brexit, the report urges that all government bodies, including local government must work together to help businesses expand their reach.

Accountancy firms in the border region estimate that approximately 30 percent of their staff and 50 percent of their clients “straddle the border”. The report says that as well as the free movement of people, cross border trade has been significantly helped by what is termed “border management”. This includes crossborder co-operation between business groups, third level colleges, and voluntary groups.

The report urges that the success of the Irish border will depend on how much the current level of co-dependencies which exist across council areas will be able to continue untouched.