The UK and Ireland have a long history of economic ties. The two countries are close neighbors and share a common language and cultural heritage. As the UK prepares to leave the European Union, there has been much discussion about the future of the UK-Ireland trade relationship.
The UK and Ireland have strong bilateral trade ties. In 2019, the UK was Ireland`s largest trading partner, accounting for 12.4% of its total trade. Ireland was the UK`s fifth-largest trading partner, accounting for 5.0% of its total trade.
The UK and Ireland are both members of the World Trade Organization (WTO). This means that their trade relationship will be governed by WTO rules after Brexit. However, both countries are also members of the European Union`s single market and customs union. This has allowed for the free movement of goods, services, and people between the two countries.
The future of the UK-Ireland trade relationship depends on the outcome of the Brexit negotiations. If the UK leaves the EU without a deal, trade between the two countries will be affected. This includes the reintroduction of customs checks and tariffs on goods.
However, both the UK and the Irish governments have expressed a desire to maintain a close trading relationship. In October 2019, the two countries signed a Memorandum of Understanding (MoU) on Common Travel Area (CTA) arrangements and associated rights and privileges. This includes an agreement to maintain the free movement of people between the two countries.
The UK and Irish governments have also committed to negotiating a free trade agreement (FTA) once the UK has left the EU. This agreement would aim to maintain or improve on the existing trading relationship between the two countries.
An FTA between the UK and Ireland would cover a wide range of issues, including tariffs, rules of origin, and trade in services. It would also address non-tariff barriers to trade, such as technical standards and regulations.
An FTA between the UK and Ireland would be beneficial for both countries. It would help to maintain the existing trading relationship and avoid the introduction of tariffs and customs checks. It would also provide greater certainty for businesses and investors.
In conclusion, the future of the UK-Ireland trade relationship is uncertain. However, both governments have expressed a desire to maintain a close trading relationship. The negotiation of a free trade agreement would help to achieve this goal and provide greater certainty for businesses and investors.