Brexit will create challenges and opportunities for the Irish economy and Irish based businesses. Some immediate challenges have emerged as companies deal with the reality of the new rules and paperwork. As these issues are bedded down, the medium and long term consequences of Brexit will demand different responses. Some will be tactical, others will be strategic, writes Brian Daly, Head of our Brexit Response team.
We therefore recommend that all our clients build a Brexit Response into your business planning for the next few years so as to be prepared as possible for the challenges and opportunities ahead. See our suggested framework.
Some of the most immediate consequences of Brexit and the Trade and Cooperation Agreement include:
Besides the challenge of increased trade frictions with our largest trading partner, opportunities could emerge in many areas – for example new FDI projects that would have historically looked at the UK as an English speaking base in the EU; spotting opportunities where UK companies are withdrawing from the EU market due to increased costs of trade, or an inability to provide services including financial services into the EU; or finding a new role in reconfigured supply chains, including on the island of Ireland.
As well as exploring opportunities to take advantage of Northern Ireland’s unique position within the ambit of both the UK and EU, Irish businesses will also want the rules and procedures designed to secure the EU Single Market to work successfully at the ports in Northern Ireland – otherwise the reputation of goods produced in Ireland from a EU single market perspective could be put at risk.
In summary, Brexit will have an impact on trade between EU and the UK and on the island of Ireland. It will create new challenges at Government level in political and policy terms to make sure that the environment in Ireland remains attractive for business.
Those businesses who respond appropriately to this new reality will hopefully be able to cope with the immediate challenge Brexit has created and more importantly, be able to find opportunities to succeed and grow in the future.
If you have any queries on how Brexit will affect your business, please get in touch with our dedicated Brexit Response Team.