Brexit is approaching, and negotiations are still stalled in Brussels. The prospect of a no-deal has never been stronger, and Ireland could bear the brunt of a no-deal Brexit. Starting with its access to certain products: the Emerald Isle could be denied imports of British potatoes… and see the price of Guinness rise due to its transit through Northern Ireland… Here’s why.
Trade Severely Impacted by a No-Deal Brexit
The Irish Prepare to Absorb the Economic Shock
Will Irish fish and chips restaurants soon have to give up their famous fries that accompany their fried fish? While the question may sound trivial, it could take on new meaning if a hard Brexit occurs. For context, Ireland mainly sources its potatoes from Great Britain (Irish production alone doesn’t cover national consumption).
However, the absence of an agreement between the EU and Great Britain could lead to stricter customs rules… potentially blocking the import of certain products made in England! Unfortunately, potatoes aren’t the only items affected.
In fact, the price of Guinness could literally skyrocket within Ireland and across European countries. The reason: although Guinness is brewed in the Republic of Ireland, it is currently bottled in Northern Ireland. This situation requires thousands of trucks to cross between the two territories to ensure the smooth production of the Guinness empire.
Now, the threat of a hard Brexit is increasingly looming over Northern Ireland, which could face a physical and economic border separating it from its Irish neighbor. This would result in numerous customs checks and additional costs for tanker trucks transporting Guinness back and forth between Dublin and Belfast.
More time spent at controls could cause significant losses unless the Guinness brewery raises its prices.
The situation remains complex and affects other similar products. For now, Northern Ireland waits anxiously. A true hostage of Brexit, it could be the first economic victim of a no-deal, closely followed by the Republic of Ireland, which until now has been accustomed to handling extensive trade with Great Britain…
We expect answers within a few weeks.
