Brexit and Ireland

Many people are too concerned about the issue related to the release of the UK from the European Union, so do not pay attention to Ireland, a country that stands out the active position, and the time to prepare for new developments, challenges and opportunities. 

The economy of Ireland won back in the early '60s: in 1962, when the leader of the Irish co-operative farming, Tony O'Reilly (head of the Irish Dairy Board), made a discovery and realize what it takes to save the Irish economy. He is one of the first to raise the question of butter, proposing the creation of its premium brand: the creation of the brand would provoke a successful competition in the UK market.

Thus was created a product - Kerrygold, which was supported by all the heads of marketing, highlighting his budget. He went on sale in packs weighing about 200 grams, which were wrapped in a transparent parchment. This marketing ploy has been designed for customers who have seen a good quality of the product. Successful realization of the product is not only inspired by others, but also changed the business of Ireland, powerfully strengthening the country's economy. 

Already after 5 decades, Ireland's economic situation has changed, it has become a powerful trade center of global significance. In the area of 90% of Ireland's exports go to send multinational companies - the American giant Intel, the pharmacological enterprises - Ptizer. 

But there are also high-quality domestic companies, such as Kerry Group. 

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Very often, analysts say about the stick in two ends: the economy of modern Ireland is very ambiguous. Its share of capital-intensive activity by foreign investment (FDI), which come from America, but classic food industry is also intended for the UK market. 

Expectation that Britain will leave the European Union makes many nervous, literally splitting the two parts of the economy, disconnecting it. 

For many years, the country was favorable to foreign companies bribing low taxes, people who speak good English and the fact that direct access to the European markets. 

Brexit eliminate a competitor: deleting it to such mobile means. 

Since voting for withdrawal of Britain from the EU, increased demands companies that are interested in moving into the territory of Ireland. So says Martin Shanahan, Head of the State Agency for the development of business and entrepreneurship. 

Most interested in the banks and insurance companies, who are afraid of losing customers and the ability to sell their services. But many IT leaders is not the first year working in Ireland. 

For example, a powerful social network for employees and business linkages - Linkedln has established its own office (building a special structure) for up to one and a half thousands of jobs. Also, the Chinese giant - Huawei has three telecommunications center in Ireland. But the importance of local economic sectors in Ireland has declined. Compared with 1962, when more than 70% of exports of goods was spent in the UK now takes about 15% (from 17% in services). 

But in spite of all the factors, experts firmly confident that by Brexit losses for Irish exporters of products will exceed all possible forecasts and surpass any positive effects of FDI. 

Ireland a kind of high-tech transmission link of the chain. Only non-significant part of production is added to the exports made in the country. Most of the farmers' goods for export to the UK: producers may incur losses, faced with the customs tax of 60% in size (not sparing Brexit). This is due to the fact that in this situation, trading conditions will be monitored and established WTO rules. 

Do not ignore the fact that Irish exporters are focused on the euro area use the UK, using it as a bridge - land corridor (using sea transportation process is complicated). Approximately 1/4 of Irish imports is transported from the UK (due to the fact that all of the powerful network of Britain have shops in Ireland). 

Brexit negative impact on the agricultural sector Irladii but well impact on FDI. This is a hand large centers such as Dublin. At that time, as Ireland has already attracted global world changes. Due to the massive increase in migrant and FDI, Ireland touched the real estate crisis and the lack of housing. 

In the case of gentle Brexit - it will suit both sides of Ireland's economy. Duty-free trade will be maintained (even though for a short time), but it will allow manufacturers to change direction and open up new markets for themselves. 

Ireland also require the creation of new, attractive brand for meat, I'm sure Dan O'Ebrayan, a member of the Institute of International and European Affairs. But, based on the successful experiment with butter, Ireland will be on the shoulder, so difficult!

Based on materials WELTRADE