Tánaiste Leo Varadkar has said duty free shopping is likely between Ireland and Britain as part of a proposed Brexit deal between the EU and UK.
The trade deal, struck on Christmas Eve, would see no tariffs or quotas on trade.
Mr Varadkar told On The Record: "There won't be tariffs or quotas, but what there will be is customs procedures.
"So there's going to be a lot of new bureaucracy for businesses unfortunately - filling in customs declarations - and also there'll be checks in the ports and airports".
But he said this could have been "a much worse situation if we ended up with tariffs and quotas".
"In some ways we'll have certain advantages as Ireland when we're looking for investment - we'll be able to say that 'If you set up... here in Ireland, you'll have access not just to the European market but also the whole European labour market' which is really important, too.
"There will probably be duty free, by the way, whenever we're able to start flying again.
"There may well be duty free between Ireland and Britain".
However the UK will lose access to several aspects of EU membership, including the Erasmus+ programme - which allows students to study in other states.
But Ireland will pay to ensure long-term Northern Ireland residents, regardless of citizenship, can access the programme.
Foreign Affairs Minister Simon Coveney has said he will update the Cabinet on the proposed deal on Tuesday.
On the deal itself, Mr Coveney said: "The border, the peace process, billions in tariffs and our place in the single market were all threatened by Brexit, these have all now been put to bed.
"When you weigh up the enormous damage of a no deal, I think Ireland has defended itself against the vulnerabilities Brexit forced upon us.
"The protection from the Irish protocol and this deal is beyond what many predicted would be possible."
