North-South trading has doubled in 15 years

TRADE levels between companies in the Republic and Northern Ireland have more than doubled in the past 15 years, a Dáil Committee heard yesterday.

Addressing the Joint Oireachtas Committee on the Implementation of the Good Friday Agreement were representatives of North-South trade body, InterTrade Ireland (chief executive Liam Nellis and strategy/policy director Aidan Gough), who said that roughly 10,000 more companies are now involved in cross-border trading activities than before the Belfast Agreement was implemented 11 years ago.

Despite admitting that the level of cross-border trade has declined in the past 12 months – mainly due to the recession and the virtual collapse of the construction industry – Mr Gough said that the Irish Government’s historic forecast that North-South trade levels could eventually increase by 400% on the back of the agreement was still realistic.

Earlier, the committee’s chairman, Deputy Noel Treacy, said: “While figures show that cross border trade has increased from €2.6 billion in 2002 to €3.1bn in 2007, much work still remains to be done to promote all-island economic development.”

“Studies show that the level of cross-border trade is less than what might be expected,” he added.

It was further suggested from the committee that trade levels are, in fact, 80% down on “what might be expected”.

However, Mr Nellis said this figure “masked” the reality of Ireland’s situation.

“Ireland has a strong international direction and many of its exports are to the US. The level of cross-border trade may be small here compared to other neighbouring jurisdictions, but that’s mainly due to Ireland’s strong economic links with the US,” he said.

Mr Nellis said most companies InterTrade Ireland has dealt with – on both sides of the border – were turned off more by not knowing how to go about building relationships with new companies, rather than being turned off by infrastructural or currency concerns.