Brexit - Britain's exit from the EU - is now a definite future reality that will have both positive and negative effects on business in Ireland.
UK and Ireland
The UK is Ireland's largest trading partner, the two countries are ideological, linguistic, and cultural allies within Europe, and they share a major - and unique - land border. Ireland and the UK are somewhat dependant on each other for import-export trade, and there is no doubt that a separation will damage both sides. However, being the only remaining English speaking member of the EU provides Ireland with a USP which is already attracting international companies to relocate their business there. Brexit will offer just as many opportunities for Ireland as it does challenges. One thing is sure, Ireland is bound to feel a British departure more strongly than any other EU member.
Brexit Ireland – Pros
Ireland and the UK are inextricably linked through trade. Although there may be increased tariffs, there will be plenty of behind the scenes agreements to mitigate their impact. The way the UK trades with Ireland in the future will likely not be vastly different. Ireland has become the first choice for companies to relocate their European hubs from the UK. It has set its sights on the financial services market in the wake of Brexit. It is well on the way to replacing London as the home of the European Banking Authority. Major financial companies such as Lloyds of London, Barclays, Bank of America, and Wells Fargo have already relocated their HQs from London to Dublin. Hoping to capitalise on a mass exodus of multinationals from the UK, the IDA has approached thousands of companies to assure them that Ireland’s future remains aligned with the EU.
Brexit Ireland – Cons
Undoubtedly, there will be some negative impact of Brexit on Ireland. Over 44% of Irelands exports are to the UK. Customs checks will have to be implemented, and tariffs will rise. Both ways. There is a risk of regulatory divergence and increased border costs. Not to mention possible political unrest. The UK acts as a sort of ‘land bridge’ for products travelling to Europe, so trade with other European countries will be affected. Business analysts expect the economy as a whole to contract by as much as 2.8%. Luckily, this retraction should not have an impact on the wages of highly skilled workers. Highly skilled migrants from the EU will be in increased demand as the recruitment of UK workers diminishes.
Brexit Ireland – Expats
Ireland is facing a period of economic uncertainty, as are all EU countries. Brexit may have a silver lining for expats working in Ireland. As an EU country, immigration procedures remain the same for EU nationals. Where a job applicant may have had to compete with UK citizens in the past. In the future, this is likely to be significantly less. Sectors such as medical technology and pharmaceuticals, where common EU regulation is vital, are now looking to Ireland as their new base in the EU. Ireland continues to have one of the most attractive investment climates in the EU, due to its close links with the UK and the US and its low corporate taxes. It seems like the obvious choice to become a major European hub for multinationals, creating thousands of new job opportunities for young professionals.
Brexit Ireland – Mundialz
While Ireland continues to negotiate its future relationship with the UK, Mundialz is working with Irish companies poised to capitalise on the positive impacts of Brexit on Ireland. Unlike other job platforms, we continue to support you beyond a successful hire. We are here to help you navigate the unchartered waters of an international career.