Trade relationship between US and Ireland still thriving – report

The trade relationship between the US and the Republic of Ireland is at an all-time high, according to a new report that shows multinationals still have a positive view of the State as an investment location.

The study highlights a rise in the number of US companies operating here to nearly 900 from 800 a year earlier. The number of people employed by such companies has jumped to 190,000 from 180,000 during the same period, while related indirect employment levels have risen to 152,000 from 144,000.

US companies spend an average of more than €12.3 billion on payroll here each year, in excess of €8.8 billion on goods and services, and invest €6.5 billion in capital expenditure, said the American Chamber of Commerce (AmCham), which compiled the report.

"Despite the uncertainty brought about by the pandemic, 2021 marked the highest ever annual employment creation figures by the multinational sector in Ireland. US multinationals accounted for 64 per cent of all foreign direct investment (FDI) in the country last year," said AmCham president Catherine Duffy.

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The trade and investment relationship isn’t just one way though, with more than 700 companies operating in the US employing around 100,000 people. The State is the ninth biggest source of FDI for the US.

Some 95 per cent of respondents to a recent AmCham survey said the Republic will remain an attractive location for US, even after the introduction of the global OECD corporate tax agreement.

The agreement, which the State signed up to late last year, is due to come into effect in 2023. It sees the Republic bringing to an end the 12.5 per cent corporate tax rate that has applied here since January 2003.