Business sounds alarm on impact of Brexit onWales’ Irish exports

THERESA May’s plans to leave the European Customs Union could put at risk the £1.8bn worth of goods and services that Welsh companies export to Ireland, businesses have warned.

The Western Mail spoke to businesses and entrepreneurs who export to the Republic of Ireland and they revealed deep fears about how the Prime Minister’s plans for Brexit would affect their trade with Ireland.

While they had differing views on Brexit, they all agreed that leaving the single market and customs union would put the value of exports at risk.

The companies spoke under the condition of anonymity and come from a range of industries from manufacturing to legal services.

One managing director of a company that produces plumbing parts said that while Brexit had improved his company’s position in the short term, it risked its long-term profitability.

He said: “We saw the value of the pound fall, which was good for our order from Ireland, but we can’t tell in the long run.

“We’re looking at a situation where we could lose our competitive edge in that export market.

“Even just a couple of percent increase in the cost of doing business here or there could make it all pointless.

“We’ll be watching this incredibly closely – because if it goes the wrong way it’s easiest just to stop exporting to Ireland and focus on selling domestically.”

Mrs May confirmed on Tuesday that the UK would leave the single market, where European nations trade with each other without restrictions or tariffs, and the customs union – where all countries charge the same import duties on goods and services.

But the Prime Minister said she would also try to secure similar terms from outside the EU.

She also vowed to protect the Irish Common Travel Area, which sees goods and people move seamlessly between the Republic and Northern Ireland.

She pledged: “Nobody wants to return to the borders of the past, so we will make it a priority to deliver a practical solution as soon as we can.

One natural cosmetics company said the risk wasn’t just economic, but that Brexit could damage how their brand is perceived in the Republic.

She said: “We’re of course worried about the economics of Brexit but also about the damage it will inflict on how they think about Welsh and British companies.

“It is so frustrating to have your company’s future torn from your hands and left to the whims of politicians.”

Cross-border business deals between Wales and Ireland have been a priority for officials in Brussels and in Cardiff Bay. The European Union’s Committee for the Regions has set aside £650,000 to support co-operation between Wales and Ireland and the Welsh Government supports trade missions – most recently in November 2016.

Irish Prime Minister Enda Kenny has spoken of his concerns for the future of Ireland’s economic relationship with the UK.

He said: “Both I and Government ministers will continue to meet and engage with our EU counterparts over the coming weeks to emphasise Ireland’s concerns and to ensure they are fully reflected in the EU position once negotiations commence.

“This activity is reinforced by extensive engagement at diplomatic and official level. The Government is acutely aware of the potential risks and challenges for the Irish economy.”