The special Brexit rules strengthen the economy in the British province of Northern Ireland. This is now suggested by trade data and economic models. However, consumers should expect higher prices than in the theoretical case of the UK remaining part of the EU.
The value of UK sales to Northern Ireland increased by 7% in 2021 compared to the previous year. Northern Ireland sales to Great Britain even increased by 13 percent, according to the statistics office. In addition, exports to Northern Ireland and other EU countries increased after the introduction of the so-called Northern Ireland Protocol. Effects of inflation are not included here.
production rises
In total, production in Northern Ireland will increase by 2.2 percent, according to model calculations from the University of Sussex. This contradicts the statements of British and Unionist politicians. Protestant supporters fear the protocol will encourage the country’s reunification with Ireland. The government in London is already threatening the EU with breaking the agreement.
It states that Northern Ireland, unlike Great Britain, will remain a member of the EU customs union and internal market. The regulation is intended to prevent a hard border with Ireland and thus a resurgence of old conflicts. However, a customs border was created between Northern Ireland and the rest of the UK. There were trade barriers, some British companies stopped deliveries to Northern Ireland. Competition from Great Britain decreased.
prosperity decreased
Another consequence of the tariff hurdles on British goods is that consumer prices have risen by 4.3% (compared to the UK remaining in the EU). This reduced overall economic prosperity by 2.4 percent.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
