Handling the borders of the Northern Ireland and the Republic of Ireland forms one of the most difficult parts of her second task, which is to unite the United Kingdom divided by the June 23rd referendum. Whether the UK gets a favorable deal or not, the issue is likely to persist. It would be very difficult to manage a trade deal which would be different for two Irelands.

British Prime Minister Theresa May travelled to Belfast yesterday and met with North Ireland first minister Arlene Foster and deputy first minister Martin McGuiness which left so many unanswered questions. He assured that the Brexit will not lead to the restoration of borders but also failed to provide clues how a free movement of today’s can be managed tomorrow.

Practically speaking, if  fully controlled borders are not restored in the event of an exit, it would eventually lead to illegal immigration as well as smuggling of goods, incentivized by the profits in avoiding higher Tariffs. A Brexit without border control will only lead to the growth of physical goods arbitrage along the borders.