UK exports to Ireland reach record highs despite Brexit trade frictions
UK exports of goods to Ireland have now posted consecutive monthly records in June and July, according to fresh data shared with Morning Wire this morning.
Analysis of the latest government trade data shows £2,861m and £2,693m worth of goods travelled into Ireland through the two months respectively, as trade with the UK’s closest neighbour defied post-Brexit tension.
Increasing exports of fuels appear to be driving the increases, with volumes of £690m in July 2022 compared to £194m in the same month of the previous year.
Exports of chemicals have also been substantially above the 12-month average in the past two months, the latest trade analysis by financial services firm Ebury found.
Rebound
Nonetheless, it represents a significant rebound in trade between the countries after exports hit a low of £1bn in January 2021 following the end of the Brexit transition period with exports consistently ticking up since then.
“Following the end of the Brexit transition period and ongoing difficulties around trade between the UK and Ireland, it was thought that imports and exports may suffer as a result,” said Jack Sirett, Head of Dealing at Ebury, this morning.
“But evidently trading links between the two countries remain robust. The energy crisis has significantly impacted trading volumes this year as countries rush to fill up storage,” he added.
“Negotiations between the EU and the UK around the Northern Ireland border remain ongoing – clarity, security and stability around this issue will be very important if the current growth in this relationship is to be sustained or even accelerated,” Sirett concluded.