More cross-border collaboration is needed to ensure alignment on trade policy, a new report into the challenges facing trading across the island of Ireland has warned.

However, the report did note cross border trade is booming as it has increased by almost 80% in the space of just six years.

Commissioned by InterTradeIreland, the all-island economic development agency, and carried out by professional services firm EY, the independent report involved five months of research.

In addition to increasing collaboration the report on the Changing Nature of Trade also called for targeted assistance for sectors most affected by trade changes as well as a push to promote the benefit of Northern Ireland’s dual market access to attract international investment.

The report examined how global and domestic developments, including Brexit, and external shocks such as the pandemic and conflict in Ukraine, have transformed the current trading landscape.

It looked at how some sectors had benefitted while others were facing new challenges.

Colin McCabrey, Director of Trade at InterTradeIreland said: “InterTradeIreland is delighted to have contributed so significantly to the increase in cross-border trade between 2016 and 2022.

"While the report outlines some challenges, more importantly, it also offers recommendations which we will work to implement with our partners.

"The research will ensure that information available to businesses across the island continues to be timely, easily understood and that free technical support is available to help build skills within businesses to grow their exports.

"InterTradeIreland’s Trade Hub is one such exemplar model of support which we will continue to develop, it has already helped thousands of businesses to easily adapt to changing trade circumstances.”

Caoimhe Archibald MLA, Minister for the Economy said: “I am heartened to see the resilience and innovation of the north’s businesses come through in the data of this research report.

"It shows that North South trade has grown by almost 80% in recent years and that easier trade and worker mobility benefits everyone on this island.

"I am committed to ensuring this organic growth continues and that businesses are fully supported to take advantage of our strategic trading position and unique ability to trade goods with both the EU and British markets.

"It’s in our mutual interest to collaborate and open our society up to commerce and innovation."

Minister of State for the Department of Enterprise, Tourism and Employment, Niamh Smyth, said: “We know that over the last number of years, businesses have faced a number of challenges, including inflationary pressure.

"However, the cross-border economy has continued to go from strength to strength during that time, highlighting the importance of supply chains on the island." 

Simon MacAllister, EY Ireland Strategy and Transactions Partner, said: “At a time of unprecedented geopolitical change, this research is very timely to identify how trade patterns are changing, how resilient businesses have been and what challenges they are facing."

Pictured L-R: Colin McCabrey, InterTrade,Ireland, Minister Caoimhe Archibald MLA, Margaret Hearty, InterTradeIreland, Minister Niamh Smyth TD and Simon MacAllister, EY.

Photo by Kelvin Boyes / Press Eye.