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The economic relationship that exists between the U.S. and Ireland must continue to be maintained at both the macro and micro-market level. The healthy trade, investment and commerce that exists between these countries, is now rapidly expanding to the opportunities in Northern Ireland as well.

Ireland is a very attractive destination for inward investment and now boasts over 600 US owned companies that provide over $61billion of investment while simultaneously providing over 225,000 jobs.

It is also important to note that Irish investment in the United States is continuing to rise at a meteoric pace, making this symbiotic relationship a model for other EU states. This section will be continually updated with more economic, trade and investment data that will serve to further educate our Membership on the key aspects of this significant trade partnership.

Trade & Investment Facts
Irish Economy
Trade Statistics
U.S. Investment in Ireland

Trade & Investment Facts

Today, nearly 100,000 people are directly employed in over 580 US firms in Ireland accounting for 70% of all IDA supported employment. Indirect employment in sub-supply and community industry & services has been estimated at over 225,000.

US companies have a US$61.5b (EUR50b) cumulative stock of investments in Irish based operations (7.6% of all US investment in the EU & 3.5% worldwide-over double that invested in the Peoples Republic of China.

The US accounts for between 60-70% of Ireland's inward investment in 2005. Analysed at a sectoral level, Ireland is the premier location worldwide for US FDI in the information sector and fourth worldwide in chemicals. The return on investment (ROI) for US firms in Ireland has been estimated at 19% over the past decade.

During 2006 67% (48/72 projects) of foreign direct investment (FDI) projects into Ireland originated from the US. Ireland's Industrial Development Authority (IDA) reports that 63% (34/54 projects) of the research and development projects that it supported involved units of US firms in Ireland. Furthermore, the IDA reports that nearly 4 out of every 5 of its projects (78%) outside of the Dublin area were in conjunction with US firms.

In 2006, US firms paid over EUR2.4b to the Irish Exchequer in Corporate Tax (or approx 40% of total corporate tax take in 2006) and contributed a further EUR13b in expenditure to the Irish economy in terms of payrolls, goods and services employed in their operations.

Irish companies directly employ an estimated 74,000 in 50 States across the USA The cumulative stock of Irish FDI in the US stood at EUR21b in 2005.

The US is Ireland's top export destination with total bilateral trade in 2005 (exports to + imports from the USA) worth EUR23.5band US firms export an estimated EUR57b of products and services from Ireland into world markets. During the first three quarters of 2006 exports from Ireland to the US where up 7% over the same period in 2005. Exports to the USA accounted for 10% of Ireland's GDP in 2005.

US firms in Ireland form a critical part of Ireland's cutting edge, internationally traded goods and services economy in industries such as information & communications technology, biotechnology, pharmaceuticals, medical technologies and financial services.

Top US Employers in Ireland
• Intel:5500 • Dell: 4300 • IBM Ireland: 3,500 • Wyeth: 3,090 • Janssen Pharmaceutical: 2,800 • Boston Scientific: 2,600 • Hewlett Packard: 2,500 • Xerox Europe: 2,000 • Medtronic: 1,950 • Bausch & Lomb: 1,800	• Analog Devices: 1,500 • Abbott Ireland: 1,500 • EMC Ireland: 1,400 • McDonalds Restaurants of Ireland: 1,250 • Hertz Europe Service Centre: 1200 • Oracle Europe: 1067 • Baxter Healthcare: 1040 • Glaxo Smithkline OTC & OT: 1000 • MBNA: 1000

Source: IDA
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Irish Economy

Ireland is an open, modern, trade-dependent economy.

•	Industry accounts for 46% of GDP, about 80% of exports and 29% of the labour force. Per capita GDP is 10% above that of the four big European economies and the second highest in the EU behind Luxembourg.
•	GNP in Ireland grew by 9.5% in the period 2000-2001. Growth rates averaging 5.3% annum are projected for the years 2005-2007. Annual inflation averages 2.4% and unemployment 4.3%. The marginal lending rate set by the European Central Bank is at present 3%. (www.oecd.org)
•	Over the past decade, the Irish Government has implemented a series of national economic programs designed to curb price and wage inflation, reduce government spending, increase labour force skills, and promote foreign investment.
•	Government policy since the 1960's has been to emphasise the development of export based industry and the attraction of foreign investment into Ireland.
•	Ireland has been a member of the EU since 1973 and joined the EURO (single currency) in 2002.
•	Major export markets include the US (largest), the UK, Germany, France. Principal exports include pharmaceuticals, healthcare & consumer products, software, computer hardware, financial services and food.

According to the Economist Intelligence Unit Business Environment Rankings, Ireland will remain one of the most attractive business locations in the world throughout '04-'08.

Source - Shannon Development
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Trade Statistics

The phenomenon of US foreign direct investment (FDI) in Ireland is well known. US investment in Ireland is well in excess of EUR60 billion and about 500 US owned businesses (about 50% of all of the foreign-owned companies operating in Ireland) directly employ more than 90,000 people. IDA Ireland is justifiably proud of its role in adapting the Irish offering to multinationals in response to both changes in the international economy and developments in the local market.

It is not surprising that Irish investment in the United States has not received the same attention. Regardless of the absolute volume of such investment (and it is significant), the relative importance of US investment in a country of five million people will always far outweigh that of investment from Ireland in a country with a population exceeding 300 million.

Source: Accountancy Ireland
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U.S. Investment in Ireland

At the end of 2005 there were over 600 US firms doing business in Ireland. Official figures show that 487 companies have established themselves with the assistance of Irelands Industrial Development Authority. Over the past twenty years, the Irish Government has actively promoted foreign direct investment (FDI), a strategy that has underpinned unprecedented economic growth during this "Celtic Tiger" period.

The Irish Government's actions have had considerable success in attracting U.S. foreign investment. According to the U.S. Department of Commerce, U.S. investment flow into Ireland in 2004 was USD 10.4 billion, roughly one-tenth the U.S. total for the EU. Ireland received USD 3.4 billion in U.S. manufacturing investment flow in 2004 and was the third most attractive market in the world for this category of U.S. investment behind the United Kingdom (USD 13.2 billion) and Canada (USD 5.5 billion). The stock of U.S. investment in Ireland in 2004 was valued at USD 73 billion, roughly five times the amount of U.S. investment stock in China (USD 15.4 billion).

It is estimated that there are over 600 U.S. firms/ establishments in Ireland, directly employing in excess of 90,000 workers and supporting work for approximately 250,000, an eighth of the total labor force.

U.S. firms operate primarily in the following sectors: chemicals; bio-pharmaceuticals and healthcare; computer hardware and software; electronics; and financial services. In 2005, Ireland also emerged as a magnet for U.S. internet/ digital media investment, with industry leaders Yahoo, Google, E-Bay and Amazon making Dublin a European hub of their respective operations.

Up to the resent past, the principal goal of investment policy has been employment creation, especially in technology-intensive and high-skill industries. In recent years, the Irish Government has also supported efforts by foreign-invested companies to sustain their international competitiveness through R&D enhancements and the marketing/ sales of higher-value goods and services.

U.S. companies are attracted to Ireland as an export platform to the EU.

In 2004, it is estimated that Irish-based U.S. firms exported roughly USD 55 billion worth of goods and services, mostly destined for the EU market. Other reasons for Ireland's attractiveness as an FDI destination include:

•	a 12.5 percent rate of corporate tax
•	the quality and flexibility of the English-speaking work force
•	cooperative labor relations
•	political stability
•	pro-business government policies
•	a transparent judicial system
•	the pulling power of existing companies operating successfully in Ireland (a "bandwagon" effect).

According to Ireland's Central Statistical Office (CSO), the entire stock of FDI in Ireland for end-year 2004 stood at euro 171.8 billion^* <http://www.amcham.ie/article.cfm?idarticle=144#_ftn1#_ftn1> , or 117 percent of nominal 2004 GDP and a 2.7 percent drop from 2003. The IDA announced over 30 investment projects with US firms in 2005, creating over 3,400 new jobs. Of these projects, roughly a third were new investments, such as those by Yahoo and Amazon, and two-thirds were expansion programs, such as those by established companies Intel, Citigroup, Microsoft, Dell, Bisys, PFPC, Abbot and International Fund Service (IFS) among others.

Roughly 90 percent of FDI projects that came to Ireland in 2005 were of U.S. origin. New investments were evenly split between the east coast, inclusive of Dublin, and the remainder of the country, with the largest regional clusters in Cork, Galway, and the Southeast. With only 4 million people, Ireland is home to 7% of all U.S. investment in Europe.

In terms of investments in manufacturing, Ireland was the third most attractive market in the world for U.S. companies after the United Kingdom and Canada. The U.S. Department of Commerce estimates that U.S. companies' average return on investment (ROI) in Ireland is 24 percent.

Source - IDA
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