Brexit in Ireland: How the Brexit will affect Ireland
The end of the Brexit transition phase brings huge changes for trade and border traffic and has nowhere had such a serious impact as in Ireland. At least a flare-up of the Northern Ireland conflict seems to be off the table and at least a “no-deal” scenario remained absent. At the last minute, an agreement on future British-European relations was laid down in a Northern Ireland protocol.
Brexit in Northern Ireland
The Northern Ireland Protocol moves the customs border into the Irish Sea, so that customs checks are only necessary between Northern Ireland and other parts of the United Kingdom. This avoids a hard border with the Republic of Ireland and allows people and goods to cross the border without inspection. This is advantageous from an Irish perspective, as many goods produced in Ireland are shipped from Northern Ireland. For Northern Ireland, this also averts the worst fears. A “no deal” scenario would have meant devastating consequences for food supplies.
Is the “land bridge” being cut?
The fastest connection between Ireland and the rest of the EU runs across Britain’s south and is a 20-hour journey, requiring only two ferry trips. The link is between Rosslare in Ireland and Dunkirk in France. This so-called “land bridge” is used by about 150,000 trucks annually, according to a study by the Irish Maritime Development Program (IMDO). Because of the Covid 19 pandemic, however, comparatively fewer goods are currently being shipped.
To ensure that the “land bridge” can continue to be used in the future, the agreement under which goods do not have to go through the full customs procedure when they are transferred will apply in the future. Logistics companies may be forced to switch from the land bridge to a longer and more expensive direct connection between Ireland and continental Europe.
Additional costs of the Brexit
Many companies are on short-time working because of the pandemic and thus have hardly any personnel or logistics methods to adjust to the changes. Costs would have risen even more if tariffs had been imposed on imports from the turn of the year. In a no-deal scenario, both sides would have reverted to World Trade Organization (WTO) guidelines. A hard Brexit would have increased the cost of living by two to three percent, which would be around 900 to 1,350 euros in additional costs per year for an average household. Fortunately, these additional burdens to the Corona economic crisis are now eliminated.
Ireland pro-European mindset
The EU-UK trade deal brings benefits to core Irish interests, such as:
- the preservation of a common economic area for the whole of Ireland without visible borders
- the preservation of the free movement of persons between the Kingdom and Ireland
- safeguarding Ireland’s place at the heart of the EU
The island, which has been divided for many decades, will now move closer together again. Throughout the decision-making process, the Republic of Ireland has tried to keep Northern Ireland’s interests in mind. For example, Ireland will in the future cover the costs of Northern Irish students’ participation in the European exchange program Erasmus, although British students will remain excluded from this for the time being.
Joe Biden – the new hope
From an Irish perspective, things are improving with Joe Biden as the new American president. As a democrat with Irish roots, he has campaigned for a Brexit deal with an open border on the island. Ireland has already been the European location of U.S. companies such as Google or Amazon for years, because of its advantageous tax policies for foreign corporations. In addition, there is now another locational advantage, as Ireland will now remain the only English-speaking EU member state with the Brexit, which could favor further U.S. investments in Ireland as a stepping stone to the EU.
