Irish businesses are looking to lessen their reliance on the UK market amid fears about the installation of additional Brexit-related inspections or red tape measures.
According to Grant Thornton Ireland’s newest international business report.
Over a quarter (27%) of 62 mid-size Irish businesses surveyed said they were seeking to limit their exports to the UK.
Meanwhile, 21% said they were trying to minimize their dependency on UK suppliers.
Imports from the UK into the Republic have decreased since the UK’s exit from the EU, while North-South commerce has increased.
Thus, implying that some businesses in the Republic are utilizing the North as a workaround.
However, trade groups are warning that further post-Brexit border procedures, which are set to take effect in June, might cause disruption.
With many Irish businesses reducing their exports to the United Kingdom.
Ireland is turning its attention to the United States, where it has identified the best market opportunity for the next 12 months.
Thereby, indicating a shift in priority from last year. When Irish businesses identified the United Kingdom as the best market opportunity, according to Grant Thornton’s report.
Indicating that despite the red tape and additional paperwork associated with Brexit. The United Kingdom will remain a key market for this nation, according to the report.
Despite the recent jump in inflation, over two-thirds (63%) of Irish businesses polled expect to raise selling prices.
“While the results of the International Business Report demonstrate a persistent trend of concern for Irish businesses five years.
After the British referendum to leave the EU,” Jarlath O’Keefe, head of indirect taxation at Grant Thornton Ireland, said.
“As they attempt to reduce their reliance on the UK market. Irish businesses are looking to explore alternative markets inside the EU, the United States, and China,” he said.
While it is a difficult moment for Ireland due to growing inflation, labor shortages, and Brexit bureaucracy.
Additionally, it is encouraging to note that 85% of businesses are positive for the coming year. Along with, allocating resources to investigating non-domestic markets.