Ibec has published it new report, The Impact of a Possible Brexit on Irish Business, which outlines the potential impact on Ireland if the UK, a key trading partner for the country, chooses to leave the EU.
The Irish business group explained that while the outcome is up to UK voters, it feels that it is important that Irish concerns are heard and understood in the debate.
Ibec Director of EU and International Affairs Pat Ivory commented, "Business is deeply concerned at recent polls that suggest the British vote on EU membership is too close to call.
"The size and economic scale of the UK means the stakes are very high, not just for the UK but for Ireland and the rest of Europe. The UK's EU membership is of key strategic importance to Ireland and Irish business."
Ivory added that a UK departure from the EU would be a blow to Irish economic recovery, and would result in a period of uncertainty for Irish businesses.
"The UK and Ireland have been close allies in Europe across a wide range of areas. An EU without the UK would be a lesser Union," he added.
According to the new Ibec report, a ‘Brexit’ would undermine the all-island economy, as there could be significant disruption to trade between Northern Ireland and the Republic.
There would also be a more general disruption to trade between the winder UK and the Republic of Ireland, as well as years of uncertainty as the UK negotiates a new agreement with the EU.
While the impact would vary from sector to sector, the food industry would be likely to suffer the most. For example, the UK accounts for €2 billion or 55% of meat exports and €1 billion or 30% of dairy exports from Ireland.
The report adds that a vote to leave the EU would see the sterling/euro exchange weaken by a further 10-15%, making Irish firms selling to the UK market much less competitive.
The full report can be found here.
© 2016 - Checkout Magazine by Jenny Whelan.