Trade between Northern Ireland and the Republic rose sharply in January as the new Brexit trading arrangements came into force, the most recent data from the Central Statistics Office (CSO) in Dublin has shown.
At the same time, imports of goods from Great Britain (GB) to the Republic have slumped while exports to GB have also fallen.
The CSO said the businesses it spoke to reported that Brexit was behind the trade flow changes as companies looked to avoid the red tape involved when goods cross the Irish Sea.
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“Traders reported that a combination of factors contributed to the large reduction in imports from Great Britain in January 2021,” Orla McCarthy, Senior Statistician at the CSO, said. “These included the challenges of complying with customs requirements.
“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.”
In total, exports from the Republic to Northern Ireland climbed 17% to £170 million (€199 million) in January while imports from Northern Ireland to the Republic climbed 10% to £151 million (€177 million).
The shift suggests businesses both sides of the border are looking closer to home for the supply and sale of goods rather than ship across the Irish Sea.
The marked fall in imports to the Republic from GB will also be a worry for Westminster.
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In total, imports on that trade route fell by 65% to just £427 million (€497 million).
The news comes as concerns grow amongst Northern Ireland businesses and consumers that the new VAT and customs requirements are making trade from GB to Northern Ireland increasingly difficult.
Meanwhile, Bristol-based tobacco giant Imperial Tobacco said this week it will stop selling some brands in Northern Ireland as a result of the cost of setting up separate production lines. The additional lines would be needed because the Northern Ireland Protocol means tobacco products sold in the region must continue to bear EU pictorial health warnings, while GB is moving to Australian health warnings.
As the practicalities of trading in the aftermath of Brexit continue to be navigated by businesses, the row over the agreement has yet to recede.
The European Union launched legal action against the 海角视频 this week against what it sees as a breach of the Brexit withdrawal agreement. It follows the 海角视频’s extension of the grace period for food products and parcels which allows them to enter Northern Ireland from GB with less paperwork.