The partnership between the United States and Ireland has a long-standing history, dating back to the early days of Irish immigration to the United States.
Today, this relationship has evolved into a thriving trade and investment partnership that continues to strengthen with each passing year.
The two nations have built a mutual trust and respect for one another, which has resulted in a robust economic partnership that benefits both countries.
The American Chamber of Commerce Ireland recently released its 2022 US Ireland Business Report, which highlights the unprecedented growth of the trade and investment relationship between the two nations.
The report shows that US multinationals have a high level of confidence in investing in Ireland, with 95% of them expressing a favorable view of Ireland as an investment destination.
Furthermore, the number of people directly employed by US multinationals in Ireland has reached an all-time high, with 190,000 individuals employed by these companies in 2021.
These figures are a testament to the strong partnership between the US and Ireland, which continues to create jobs and drive economic growth in both nations.
Trade and Investment Relationship
The US-Ireland trade and investment relationship has reached an all-time high, with US multinationals accounting for 64% of all foreign direct investment in Ireland last year. This highlights the strong and enduring appeal of Ireland as an investment destination for US companies, despite the impending implementation of the global OECD corporate tax agreement.
This relationship has also led to a rise in the number of US firms operating in Ireland, with almost 900 currently in operation. Ireland has been ranked ninth among the biggest sources of FDI for the US, and over 95% of US multinationals have a favourable view of Ireland as an investment destination.
Furthermore, the employment figures associated with the US-Ireland trade and investment relationship continue to grow. The number of people directly employed by US multinationals in Ireland has increased to 190,000, with related indirect employment levels also increasing to 152,000.
The number of employees in US companies in Ireland has risen in the last 12 months, and 2021 marked the highest ever annual employment creation figures by the multinational sector in Ireland. These figures demonstrate the mutually beneficial nature of the US-Ireland trade and investment relationship, and indicate that the partnership is stronger than ever.
Employment Growth
Indirect employment levels related to American multinational companies in Ireland have increased in the past year. As of 2021, there were 152,000 jobs created by the presence of US firms in Ireland, up from 144,000 in the previous year.
This is in addition to the 190,000 direct jobs created by US multinationals in Ireland, indicating the significant contribution of American investment to the Irish economy.
US companies in Ireland also have a significant impact on employment in the United States. Over 700 Irish companies operate in the US, creating roughly 100,000 jobs across all 50 states.
This reciprocal relationship highlights the importance of the US-Ireland trade and investment partnership and demonstrates the positive effects that a strong transatlantic economic relationship can have on both countries.
Tax Incentives Appeal
Tax incentives continue to be a significant factor in attracting multinational companies to invest in Ireland. The country’s corporate tax rate of 12.5% is among the lowest in Europe, and the government has implemented various tax incentives to encourage foreign direct investment.
For instance, companies that invest in research and development can benefit from a tax credit of up to 25%. Additionally, there are tax exemptions for foreign dividends and capital gains, and an attractive holding company regime that enables companies to repatriate profits with minimal tax implications.
These tax incentives have played a crucial role in attracting US multinationals to Ireland. According to the American Chamber of Commerce Ireland, over 95% of US multinationals have a favourable view of Ireland as an investment destination, in large part due to the country’s tax incentives.
Despite the recent global OECD corporate tax agreement, which aims to establish a minimum corporate tax rate of 15%, Ireland’s tax incentives are expected to remain attractive to foreign investors. As such, Ireland is well-positioned to continue to attract foreign direct investment from the US and other countries.
2022 Business Report
A recent survey of American Chamber of Commerce Ireland members indicates that the attractiveness of Ireland as an investment destination for foreign investors is expected to persist even after the global OECD corporate tax agreement is implemented. This is a significant finding, as the proposed global minimum tax rate of 15% could have potentially deterred foreign investors from choosing Ireland as their investment destination.
However, the survey results suggest that Ireland’s other advantages, such as its highly skilled workforce, favourable business environment, and access to the European market, continue to outweigh concerns over tax incentives.
The survey also highlights the crucial role of US investment in Ireland’s economy. It underscores the recognition of the long-standing partnership between the two countries and the potential for continued growth in the future.
The report titled ‘Ireland – The Next Century’ is a testament to the positive outlook of the American Chamber of Commerce Ireland members towards Ireland’s economic prospects, and it reinforces Ireland’s position as a premier investment destination in the global market.
Recognition of Investment’s Role
Recognition of the crucial role played by foreign investment in the economic growth of a country is a widely acknowledged fact in the global business community. The American Chamber of Commerce Ireland’s recently released 2022 US Ireland Business Report underscores this recognition, highlighting the crucial role of US investment in the Irish economy.
The report also features high-profile politicians, including An Taoiseach Micheál Martin, who contributed to the discussion on the significance of foreign investment in Ireland’s economic development.
The report’s recognition of the role of US investment in Ireland’s economy is supported by various statistics. For instance, over 95% of US multinationals view Ireland as an attractive investment destination, and the number of people directly employed by US multinationals in Ireland has grown to 190,000 from 180,000 in 2021. Additionally, US multinationals accounted for 64% of all FDI in Ireland last year, and Ireland ranked ninth among the biggest sources of FDI for the US.
Such figures demonstrate the significance of US investment in Ireland’s economy, indicating that foreign investment continues to play a crucial role in Ireland’s economic growth.
