Import and export data shows the clear impact of Brexit on trade

Increased paperwork and stockpiling of goods blamed for 65% fall

traffic at Dublin Port. Covid-19, Brexit and the stockpiling of goods all contributed to the fall in trade between Ireland and Britain in January. Picture Colin Keegan

Brexit had an immediate impact on trade volumes between Ireland and Britain with imports and exports between both countries falling significantly in January when compared to the same month last year.

Figures from the Central Statistics Office (CSO) show that imports from Britain were €497m in January, a fall of €906m or 65% from a year previously. Goods from Britain accounted for just 9% of total imports. Exports in the same month to Britain decreased by 14% to €946m.

Increased custom requirements and stockpiling by companies in the final quarter of 2020 due to Brexit contributed to the reduction. At a global level, total goods exports decreased by 12%, and total imports fell by 20%.

Orla McCarthy, Senior Statistician with the CSO said traders blamed a combination of factors that contributed to the large reduction in imports from Britain. "These included the challenges of complying with customs requirements," she said.

"Other factors identified by traders were stockpiling of goods in Q4 2020 in preparation for Brexit, substitution with goods from other countries, and a reduction in trade volumes due to the impact of Covid-19 related restrictions throughout January."

The CSO said the data for January shows an increase of €1.1bn or 21% in the seasonally adjusted trade surplus to €6.4bn in January compared to December.

The trade in food and live animals between Ireland and Britain was one of the most severely impacted sectors. Imports of such products in January was just €62m, a fall of 75% over the past 12 months. Exports of food and live animals to Britain fell by one-third to €188m

The EU accounted for €4.4bn or 34% of total exports in January which represents a decrease of 23% compared with January 2020. The US was the main non-EU destination accounting for €4.9bn or 37% of total exports in January.

Imports from the EU were €2.2bn (39%) of total imports in January, a decrease of 13% over the same month in 2020. The USA with €722m (13%), Switzerland with €663m (12%) and China with €448m (8%) were the main non-EU sources of imports

Industrial produce accounted for €12.6bn or 95% of total exports in January. This is a decrease of €1.6bn or 11% when compared with January 2020. Agricultural produce accounted for €483m (4%) of total exports.