With much of the trade data for 2021 now published, the impact of Brexit for the EU and UK is becoming more visible.

The impact isn’t particularly dramatic across many sectors of both economies, the exception being for smaller UK food exporters who have found the health certification rules have made exports uneconomic.

There has been no impact at all so far for Irish exporters with the non-implementation of import controls so far on Irish produce entering Britain.

EU imports from UK down 26%

Despite overall EU food and drink imports increasing by 4% to €105.3bn between January and October 2021, imports from the UK fell by €3.3bn to €9.3bn or 26% compared with the first 10 months of 2020.

This also meant that the UK ceased being the top supplier of food and drink imports to the EU with top spot taken over by Brazil, which exported €11.4bn up to end of October 2021, the same value as for all of 2020.

With the UK not imposing any border controls during 2021, the only disruption to normal trade patterns was stockpiling ahead of the UK leaving the single market on 1 January. That meant that exports were sluggish at the start of the year but picked up as the year went on reaching €34.2bn by end of October, fractionally ahead of the same period last year.

Freight traffic

Probably the most striking effect of Brexit on Ireland in 2021 was the increase in Irish exporters choosing to go direct to continental ports rather than use Britain as a land bridge.

Roll-on, roll-off traffic was down by 98,904 units or 9.3% to 962,075 units compared with 2020, though this was partially offset by an increase in container traffic, which increased by 43,188 units or 10.2%.

The UK route from Rosslare fell by 35,926 units to 64,890 in 2021

This business has moved mainly to Rosslare where there was almost a four-fold increase in roll-on, roll-off units going to the rest of the EU, increasing by 94,477 units to 119, 927 compared with just 25,450 using the direct route in 2020.

The UK route from Rosslare fell by 35,926 units to 64,890 in 2021.

Protocol checks

Belfast Port also reported an increase in roll-on, roll-off freight in 2021, growing by 12% to almost 600,000.

EU controls at Belfast and the other Northern Irish ports have been provided for in the controversial protocol

Part of the increase is that this route has carried some of the imports to the Republic of Ireland from Britain as full EU border controls have been in place since the start of 2021.

EU controls at Belfast and the other Northern Irish ports have been provided for in the controversial protocol. The draft report of an EU inspection of these checks carried out in June 2021 showed that up to that date, 55,186 consignments came through the Northern Irish ports.

Over half of these, 56%, were deliveries to supermarkets and, interestingly, just 0.3% related to processed meat which is banned.

The inspection was scathing about the implementation of the border controls describing them as “not fit for purpose, does not comply with EU rules and cannot provide sufficient assurances that only compliant animals and goods are permitted to enter the EU SPS area.”

Comment

Trade in goods that are of animal or plant origin are now much more bureaucratic between the EU and the UK.

Health certification and inspections are required and that has cost exporters £58m (€68.5m) in 2021.

This has frustrated UK exporters to the EU in 2021, as many were unprepared and smaller exporters found it no longer economic to do business.

There has been significant realignment for Irish ports with Rosslare seeing a surge in direct traffic to the EU and Northern Irish ports seeing increased business with Britain.

What has to be of great concern is the conclusions drawn by EU inspectors on how the border controls are being implemented in Northern Ireland.

Their lack of confidence in them protecting the single market is unlikely to be tolerated indefinitely and that means the problem of protecting the single market of the EU 27 could be given to the Irish Government if the EU cannot agree a solution with the UK.