The creation of a peaceful and stable environment in Northern Ireland could see North-South trade boosted by up to 50 per cent, the IBEC-Confederation of British Industry joint business council said yesterday. Mr John Kenna, chief executive of the council, welcomed the political agreement announced at Stormont and said it could lead to an increase in east-west as well as North-South trade. "The creation of a peaceful and stable environment will boost opportunities for business to expand at a much faster rate than has been possible to date," he said.

IBEC and the CBI came together in 1991 to organise a programme aimed at removing barriers to trade between Northern Ireland and the Republic. As part of the programme, companies on both sides of the Border are introduced so they can exploit new market opportunities.

In the past three to four years North-South trade has increased by over 50 per cent, Mr Kenna said. The IBEC-CBI programme, EU supports, and, most importantly, the increased commitment of industry after the ceasefires were behind this increase. However, Mr Kenna believes that North-South trade, currently worth approximately £1.7 billion, is still less than it should be and could grow to £3 billion.

There is currently a favourable South-to-North trade balance of £200 million.