Page 29 - Linkline Summer 2017

Brexit: Implications for the Movement of Goods
Brexit creates uncertainty over many aspects, including the future of the trade relationship between the European Union and the United Kingdom. The Republic of Ireland is the only country within the European Union that shares a land border with the United Kingdom, and has supply chain and logistics patterns that are interlinked to the United Kingdom’s. These patterns and Ireland’s infrastructure must prepare for the effects of a post-Brexit trade deal to avoid supply disruptions should the UK officially exit the EU next year. By Lilita Zelca.
Current Trade Patterns
The economies of the Republic of Ireland and The United Kingdom (Northern Ireland in particular) are deeply interdependent, with significant cross-border trade, transit routes, international trade patterns and industries operating on an all-island basis.
The United Kingdom is Ireland’s second biggest trade partner, after the EU as a whole. In 2016 almost 13% of the total Irish exports were destined for the United Kingdom, and these exports have gradually increased over the past four years. Any trade restrictions such as border control and import tariffs put in place after Brexit could increase the transportation time and total operating costs.
Ireland: Goods exports per area by value, million Euro
Great Britain
Northern Ireland
Other EU
Rest of the World
Total
2013
12794
1478
42231
32678
89181
2014
12137
1605
42813
36061
92616
2015
13810
1744
50786
46067
112407
2016
13359
1646
51737
50844
117586
Ireland: Goods imports per area by value, million Euro
Great Britain
Northern Ireland
Other EU
Rest of the World
Total
2013
15870
1016
17917
20984
55787
2014
16461
1104
23097
21495
62157
2015
16903
1091
26969
25148
70111
2016
15594
1050
28997
25515
71156
Imports & Exports by value; million euro. Data Source: CSO Ireland
The UK is not only an important trade partner, but also serves a major role in shaping the logistics patterns of the island of Ireland. There are three main trade and transport flows that are particularly important for the Republic of Ireland - trade and transportation within the island of Ireland, trade and transport flow from the Republic of Ireland to Great Britain, and transportation to and from mainland Europe, via the UK land-bridge.
On the island of Ireland, supply chains are highly integrated, often crossing the border several times for production and value added activity purposes before reaching the final customer. If the hard border was re-introduced as a result of
Brexit, the transportation and distribution patterns could be re-designed to avoid the time consuming border crossing procedures. This could lead to longer lead times, less frequent deliveries, and the facilities located on one side of the border being ‘stranded to the market’ on the other side.
Approximately 80% percent of Ireland’s road freight to Europe goes through the British mainland. In the border-free European Union, lorries are freely using the roll-on, roll-off ferries to transport goods to and from mainland Europe. If the UK leave the single market and the EU Customs Union, all goods trade and transit with the EU will be subject to border control, and customs clearance. As it currently stands, the
The CharTered InsTITuTe of LogIsTICs & TransporT 29
INDUSTRY