All-Island Tradeable Services

New research highlights €4.3 billion opportunity to grow all-island services trade

• Cross-border services trade has more than quadrupled in the last decade, with strong opportunities identified for SMEs in construction, technology, financial services and life sciences

Businesses across the island of Ireland could benefit from a significant growth opportunity of up to €4.3 billion (£3.7 billion) in cross-border services trade, according to new research published by InterTradeIreland.

Against a challenging global backdrop, cross-border services trade is one of the clearest positive economic stories on the island. The All-Island Tradeable Services Report found that services trade between Northern Ireland and Ireland has quadrupled in the last decade from around £800 million in 2011 to an estimated £5.3 billion in 2024.

While cross-border trade is often associated with the movement of goods, services trade is becoming an increasingly important part of the all-island economy. It includes everything from architects and engineers working on projects across the border, to technology firms, financial services providers, consultants, healthcare specialists and cybersecurity companies serving clients in another jurisdiction. Today, services account for around a quarter of all trade between Northern Ireland and Ireland.

The report identifies the clear potential for further growth. An indicative assessment carried out as part of the research suggests that more targeted measures to help businesses overcome barriers to cross-border trade could unlock up to €4.3 billion (£3.7 billion) in additional services activity over time. Many of the sectors identified in the report align with economic priorities, including construction, financial services, fintech, cybersecurity, professional services and life sciences. These are sectors that support innovation, productivity and high-value employment across the island.

While businesses generally view trading across the border as straightforward compared with many international markets the research found that practical challenges can still hold some firms back. Unlike goods trade where the practical steps involved in cross-border trade are often well understood, services businesses can face a more complex regulatory environment. While these issues are often more manageable than businesses expect, the research found that these challenges are usually felt most acutely by smaller firms.

To help unlock this potential, the report sets out 15 recommendations focused on:

• Increasing visibility of business and procurement opportunities across both jurisdictions.
• Strengthening cross-border networks, partnerships and sector clusters to help firms identify new customers and markets.
• Improving the evidence base and data available to businesses, policymakers and economic stakeholders.

Among the recommendations are proposals to develop an AI-assisted business support tool, strengthen business matchmaking and networking initiatives, and establish an all-island services monitor to track emerging trends and opportunities.

The findings were discussed at a stakeholder event hosted by InterTradeIreland, bringing together businesses, policymakers, economists and organisations from across the island. The event explored the opportunities for further growth in cross-border services trade and the practical steps needed to help more businesses access all-island markets.

For more information on InterTradeIreland and the supports they can offer businesses visit www.intertradeireland.com. 

Pictured L-R: Margaret Hearty, CEO of InterTradeIreland, Minister Peter Burke, Minister for Enterprise, Tourism and Employment, Dr Caoimhe Archibald, Minister for the Economy, Richard Kennedy, InterTradeIreland Chairperson