Maintaining free and frictionless trade, in particular across the land border
B.11 The UK and Irish economies are closely linked, through trade and cross-border investments as well as through the free flow of goods, utilities, services and people. There are more than 50 Irish companies listed on the London Stock Exchange, more than from any other country.
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B.12 The Northern Ireland economy is deeply integrated with that of Ireland. In 2015, Ireland was by far Northern Ireland’s biggest trading partner, with goods exports worth £2.1 billion (33 per cent of total goods exports) and imports of £1.6 billion (27 per cent).
105 The integrated nature of the two economies is particularly the case in the agri-food sector and its supply chain. This sector is of key importance to Northern Ireland’s economy, sometimes described as its ‘backbone’.
106 Much of the so-called ‘cross-border trade’ between Northern Ireland and Ireland includes both external trade, in the sense in which it would normally be recognised, and inherently local trade in local markets that simply happens to cross the border. About 30 per cent of the milk produced on Northern Ireland’s farms (over 600 million litres) is exported for processing in Ireland.
107 More than 10,000 live pigs are exported from Ireland to Northern Ireland every week.
108 Food, beverages and tobacco account for some 48 per cent of cross-border manufacturing trade.
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B.13 The Single Electricity Market operating on the island of Ireland provides both Ireland and Northern Ireland with affordable, sustainable and secure access to electricity for both businesses and domestic customers. The former First and deputy First Ministers of Northern Ireland highlighted this as an important priority for Northern Ireland and this Government recognises the importance of ensuring that it is secured following our departure from the EU.
B.14 As Chapter 8 makes clear, we want to ensure that cross-border trade with the EU – and particularly with Ireland – is as frictionless as possible when we leave the EU. We are committed to negotiating an exit deal that works for the whole of the UK, including Northern Ireland. We will work with the Irish Government and the Northern Ireland Executive to minimise frictions and administrative burdens and to find a practical solution that keeps the border as seamless and frictionless as possible, recognising the unique economic, social and political context of the land border between Northern Ireland and Ireland.