- Goods export volumes reach record highs for two consecutive months driven by rising trade of fuels and chemicals
- Exports now nearly three times higher than their low point in January 2021 following the end of the Brexit transition period
London 5 October 2022: The latest Trade Monitor from Ebury, the global financial services firm simplifying international trade, finds that UK exports of goods to Ireland have now posted consecutive monthly records in June and July.
Analysis of the latest government trade data shows £2,861 million and £2,693 million worth of goods travelled into Ireland through the two months respectively, as trade with the UK’s closest neighbour defied post-Brexit tension.
Increasing exports of fuels appear to be driving the increases, with volumes of £690 million in July 2022 compared to £194 million in the same month of the previous year. Exports of chemicals have also been substantially above the 12-month average in the past two months.
Nonetheless, it represents a significant rebound in trade between the countries after exports hit a low of £1.0 billion in January 2021 following the end of the Brexit transition period with exports consistently ticking up since then.
Imports of goods have declined over the past few months, but had been tracking significantly higher, in line with exports.
Import volumes of £1.6 billion were recorded in April 2022 – an all-time high – and have since remained comfortably above average levels.
Jack Sirett, Head of Dealing at Ebury, commented: “Ireland is the UK’s closest geographic neighbour and consequently an extremely important trading partner.
“Following the end of the Brexit transition period and ongoing difficulties around trade between the UK and Ireland, it was thought that imports and exports may suffer as a result. But evidently trading links between the two countries remain robust.
“The energy crisis has significantly impacted trading volumes this year as countries rush to fill up storage. The UK is playing an important role as the first point of contact for LNG imports into Europe from the US, Qatar and other countries before funnelling on supplies to continental Europe and Ireland.
“Negotiations between the EU and the UK around the Northern Ireland border remain ongoing – clarity, security and stability around this issue will be very important if the current growth in this relationship is to be sustained or even accelerated.”
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1 – ONS, UK Trade: July 2022, https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/uktrade/july2022