Chambers Around Ireland Express Brexit Concern
Ahead of an EU Council meeting scheduled to take place on the 23-24 March, Chambers Ireland has published the results of a survey of the Irish Chamber Network, revealing that an overwhelming majority of 97 per cent of Chambers believe a transition period following the UK’s exit from EU next March will be necessary. 75 per cent of Chambers responding to the survey also recommended that a transition period should last longer than two years.
Chambers continue to believe that Brexit will be a challenge for their members, with three quarters of responses confirming that Brexit presents more challenges than opportunities.
With regard to the consequences of Brexit, Chambers were asked to identify their three biggest concerns, which were as follows: a return to a hard border with Northern Ireland, a reduction in trade in goods and services and a negative impact on tourism in Ireland.
Chambers were also asked to outline their top three priorities for the next phase of negotiations on the future trading relationship. No hard border between Ireland and Northern Ireland, no tariffs between the EU and UK and ongoing regulatory alignment between the EU and UK were identified as the leading three priorities.
When asked how Government should support business in the context of Brexit, responding Chambers identified the following as the best way Government could ensure Irish businesses are supported: ongoing increased investment in capital infrastructure; maintenance of the 12.5 per cent corporate tax rate to secure increased FDI; and ongoing investment in trade finance to support market diversification.
Commenting on the findings, Chambers Ireland Chief Executive Ian Talbot said: “Twelve months on from the UK Government’s decision to trigger Article 50, businesses are still no clearer on what the future trading relationship will look like. This is significantly impacting upon investment decisions and the future planning of operations for businesses. Despite the negotiating parties’ commitment last December to no hard border between Ireland and Northern Ireland, Irish Chambers remain concerned about the UK’s continued commitment to leaving the Customs Union and the EEA, and how this will impact trade between the two islands, the tourism sector and indeed our relationship with Northern Ireland.”