I thank the Cathaoirleach and members of the joint committee for the invitation to discuss EU-UK trade and InterTradeIreland’s role in supporting businesses across the island through the changing trading conditions of recent years. InterTradeIreland’s unique contribution to EU-UK trade is focused on accelerating cross-Border trade and collaboration.
As members are aware, InterTradeIreland is one of the six North-South implementation bodies established in 1999 under strand two of the Good Friday Agreement. Our remit is to support and develop all-island trade and economic co-operation. We support businesses across the island to grow through cross-Border exporting, innovating, collaborating, and securing investment.
Since 1998, we have directly supported more than 60,000 businesses, generating €1.8 billion in business development value. Last year alone, we supported more than 2,600 businesses in every county on the island and in just over a year of operation, our new trade hub has supported 11,000 businesses. In 1998, cross-Border trade was worth approximately €2 billion and by 2022, this had grown to a record level of over €12 billion with current figures suggesting that this will be sustained across 2023 and 2024. Cross-Border trade has expanded across almost every sector in the past few years in both goods and services with trade in goods alone growing more than 30% in each direction between 2021 and 2022.
InterTradeIreland continually monitors trading conditions, especially through our all-island business monitor, AIBM. This unique, all-island survey speaks to 750 businesses across the island every quarter allowing us to stay on the pulse of business sentiment, profitability and current challenges and to track how firms are responding to changing trading conditions. This means we can see and respond quickly to emerging issues and opportunities. Our all-island business monitor shows that businesses that export cross-Border outperform those that do not, enjoy higher growth and are more resilient.
From our 2024 quarter 2 results, 47% of cross-Border traders said they were in growth compared to 28% of non-exporters, 38% have increased sales versus 23%, and 37% reported profits of over 10% compared to 26% of non-exporters.
The cross-Border market provides an obvious first step for businesses that want to explore their export journey and build their capability. Our research shows that more than 75% of businesses that start exporting cross-Border go on to export off the island, which is exactly what is required.
Significant opportunity remains for InterTradeIreland to increase the number of cross-Border exporters and the volume of cross-Border trade. We have developed a comprehensive pathway of trade supports and programmes designed to help small businesses to take advantage of the opportunity to sell cross-Border for the first time and enable existing exporters to unlock new sales and sourcing opportunities across the entire island. This includes supports to appoint sales resources, exploit all-island public procurement opportunities, and access our in-market supply chain specialists.
InterTradeIreland has a unique connecting role. This allows us to facilitate collaboration between businesses, industry bodies and policymakers North and South, and especially to identify opportunities where an all-island approach can accelerate economic growth and contribute to the delivery of shared economic policy objectives for our partner departments, the Department for the Economy in Northern Ireland and the Department of Enterprise, Trade, and Employment. This was clearly demonstrated through our Brexit advisory service. After the UK voted to leave the EU, we undertook extensive research to identify the issues for cross-Border trade to inform policymakers and to guide and support businesses to understand and adapt to new trading regulations. Some 60,000 users benefitted from our free and impartial advice, while more than 4,000 businesses used our Brexit advisory voucher service. Through our latest all-island business monitor one third of businesses tell us they are not affected by Brexit, while almost half report that they have largely or fully adapted to the new post-Brexit trading conditions. However, when asked about the Windsor Framework, 60% of businesses across the island indicate that they have no knowledge of the requirements that the current changing trading conditions have for their business.
Recognising this uncertainty and continued need for information and support, in 2023 InterTradeIreland launched our new trade hub. This is a valuable online resource that provides up-to-date information, advice and practical support to enable businesses to understand and adapt to the changes, and take advantage of new trade opportunities. Our trade hub provides answers and specialist advice to businesses on customs, VAT, regulation, and cross-Border employment. The trade hub includes an interactive chat bot, telephony support and bespoke one-to-one support to enable businesses understand the specific issues and challenges and take practical steps to address these. To date almost 11,000 businesses have used that support and we are happy to share some examples of these with members during the question and answer session.
We also commission specific research to ensure that we are doing as much possible to support businesses and our partners to grow cross-Border trade and collaboration. We are almost finished a significant research project that looks at changing trading conditions and the impact on business. We would be happy to share the report with the committee later this month when it is published. I thank the Cathaoirleach for the opportunity to address the committee. I hope that this is helpful and my colleagues and I are very happy to take any questions.