Wednesday, March 17, 2021. In the Netherlands the day on which we can go to the polls en masse, in Ireland the day on which St. Patrick's Day is celebrated. Commemorating patron Saint Patrick and celebrating established relationships are central to this day every year. What about the trade relationship between the Netherlands and Ireland? And what opportunities are there now that Brexit has taken place?
During St. Patrick's Day, the country's patron saint, Saint Patrick, commemorated. But it is also a day when the Irish celebrate the relationships built over the years. Irish Ambassador Kevin Kelly said this on Tuesday, March 16, during an online Bord Bia event. “As Ambassador to the Netherlands, I am proud of the fact that the Irish-Dutch relationship is growing. Whether it concerns our trade and business ties or bilateral political ties, our relationship with the Netherlands has never been as strong as it is today.”
The numbers reflect growth
If we look at the figures, trade between Ireland and the Netherlands has indeed increased in recent years. In 2016, the Netherlands imported approximately €5 billion worth of goods from Ireland, in 2019 that amount increased to more than €10 billion. "This makes the Netherlands (with 5,4%) the fifth largest destination for Irish goods," Kelly explained during the Bord Bia meeting. The United States (5%), Belgium (30,1%), Germany (11,4%), the United Kingdom (11,1%) and China (9,3%) are still ahead of the Netherlands. Most trade takes place in medical equipment, other electronic equipment and machines.
If we look purely at agricultural trade, almost €2019 million was imported from Ireland from the Netherlands in 700. With 'dairy, eggs and honey' as the largest category. This amounts to more than €400 million in 2019. Five years earlier, this was approximately 5% lower, at around €50 million. Butter in particular, with a share of 200%, plays a major role in this. Cheese (33,3%) and concentrated milk (14,2%) are also imported from Ireland.
Irish beef is a lot more popular in the Netherlands than the latter dairy products. This amounts to an annual amount of more than €100 million. Although this is only 1,7% of the total trade between Ireland and the Netherlands, it represents a percentage of 21% in the agricultural trade relationship. Kelly: "In total, last year we even exported more than €1 billion worth of food and drinks to the Netherlands for the second year in a row." Ireland is our country's second largest trading partner when it comes to beef, after Germany.
The relationship is also strong the other way around. Two years ago, the Netherlands exported more than €4 billion worth of goods to Ireland. Although it largely concerns computers (6,49%) and medicines (4,57%), our poultry meat also plays a major role. With a share of 3,39%, annual exports amount to approximately €188 million. Looking solely at agricultural exports to Ireland, this even concerns a share of 54,4%.
It is striking that there is virtually no trade in arable farming-related products (such as fruit and vegetables) or pork. In other words: Ireland is an interesting trading partner, especially for the Dutch dairy market.
Further strengthen the relationship after Brexit
Now that Brexit has taken place, the question naturally arises whether there are more opportunities in the relationship between the Netherlands and Ireland. After all, trade within the European Union is of course easier than outside it. Kelly: "There is no doubt that the United Kingdom's decision has created a lot of economic uncertainty, but Ireland's response was to make the best of it. And we have found a very good partner in the Netherlands."
Kelly therefore states that the aim is to intensify the trade relationship with the Netherlands in the coming years. “The opening of a new, direct freight route between the 2 capitals (Amsterdam and Dublin) in January this year is another tangible example of this deepening of the relationship.”