A report recently issued on the Transatlantic Economy makes for interesting reading for Irish businesses.
The report is written largely from the U.S. perspective, but outlines the importance of the trade in both goods and services between the U.S. and the European Union.
In part it shows how the U.S. is a key trade partner for Ireland. The U.S. accounts for 49% of Irish exports outside the EU and 33% of its outside the EU imports. The relationship continues to develop since in 2014 Irish imports from the U.S. grew by 17.9% and exports grew by 8.9%.
Many U.S. multinationals locate themselves in Ireland, in effect using Ireland as a corporate beachhead from which to service the rest of the EU. In fact the report shows that by 2013 exports from U.S. businesses located in Ireland totalled $244 billion. In terms of other countries in the world this is second only to Singapore.
This means that U.S. businesses make use of Ireland as an export base to a far greater degree than other lower cost locations, such as Mexico, Hong Kong and China. U.S. businesses export four times more from Ireland than from China. Taken on its own U.S. business exports from Ireland are greater than most countries’ exports.
Why is Ireland such an attractive place for U.S. business?
The report outlines Ireland’s flexible and skilled English-speaking workforce as well as its membership in the EU, low corporate tax rates and pro-business policies. In addition, since the 2008 financial crisis the Irish economy has rebounded to become one of the fastest growing economies in the world.
All this adds up to making Ireland a great place to do business. Of course we all knew that already!