Irish exports to Britain continue to surge despite Brexit upheaval

Imports from Britain into Ireland declined by 32% in one year and the total value of all exports here fell 5%

While overall Irish export value declined, July saw a continued surge in exports to the UK, despite the continued problems posed by Brexit. 

Irish exports to Britain continued to surge in July, latest CSO figures show, despite ongoing Brexit upheaval.

The value of goods exports from Ireland to Britain jumped by €567m – or 60% - to just over €1.5bn in July, compared to the same month last year. 

This was despite continued Brexit-related uncertainties and upheaval and the fact that Irish exporters’ reliance on the British market has declined since Brexit became a reality.

Across the first seven months of the year, as a whole, the value of Irish exports to Britain jumped by nearly €1.7bn – or 26% - on the same period last year to €8.2bn.

The largest increases in July, according to the CSO, were in the exports of chemicals and related products and machinery and transport equipment.

Imports from Britain into Ireland, however, declined by 32% - or €467m -year-on-year, in July, to €983m.

However, Ireland’s reliance on Britain as a trading partner has cooled considerably. Since Britain left the EU, the country only accounts for 12% of Irish exports.

According to Jarlath O’Keefe, a partner in indirect taxes at Grant Thornton Ireland:

Britain remains an important player in Ireland's export market and this is evidenced by the fact that exports to Britain increased by €567m in July 2021 compared to July 2020.

"However, the previous over-reliance on the British market is no longer the case, given that exports to Britain accounted for 7% of overall exports from Ireland [in the first seven months of the year] which demonstrates that the Irish market is continually sourcing new markets for its products," he said.

Mr O'Keefe noted the confirmation, in the July figures, of a significant increase in cross-border trade on the island of Ireland in 2021 following Brexit. 

"This is due, in part, to businesses adjusting their supply chains to avoid the administrative burden associated with importing goods from Britain," he said.

The value of Irish exports, overall, fell 5% - or €736m – year-on-year to just under €12.9bn in July. The main driver in the fall was a substantial decrease in the export of organic chemicals, medical and pharmaceutical products.

For the first seven months of the year, combined, total Irish export value amounted to almost €94bn. This was a decline of 2% on the same period last year.