The US-Ireland business relationship: One of enduring substance
After more than a century of diplomatic relations between Ireland and the United States, it is a good time to reflect on Ireland’s global mindset and its business relationship with the US.
By Danny McCoy, CEO, Ibec
Alongside Ireland the United States’ diplomatic ties is a longstanding trade relationship that has significantly impacted both nations’ economies. From US multinationals operating in Ireland to the ever-expanding reach of Irish businesses across American markets, the partnership reflects the mutual benefits of shared values and a commitment to economic growth.
Ireland’s strategic position has been key in attracting US investment for many decades, helping to transform the Irish economy into a modern hub of global commerce. From Henry Ford’s presence in Ireland a century ago to today’s Europe, Middle East, and Africa (EMEA) headquarters of global leaders in technology, biopharma, and med-tech, Ireland offers a familiar environment for US businesses to expand their global footprint. While US investments in Ireland have fostered job creation, spurred economic growth, and strengthened trade relations, the relationship is very much a two-way street.
Irish firms in the US almost mirror the employment contribution of American companies in Ireland. Ireland is now the 6th largest source of Foreign Direct Investment (FDI) into the US, with Irish investment valued at over $240 billion. The US market remains a cornerstone for many Irish companies seeking expansion. Over 600 Irish firms operate across diverse sectors in the US, from agri-food and manufacturing to construction and services, bringing substantial investments and high-quality jobs. There are many great Irish success stories in the past, but a new chapter is being written by young Irish entrepreneurs who have, in recent years, established businesses in the US—emphasising the fluid movement of talent and the cultural compatibility between the two nations.
Access to the European market remains profoundly important for global US businesses. Ireland’s membership in the EU has positioned it as a strategic hub for global trade in both goods and services. As a gateway to EU Single Market of over 450 million EU customers, Ireland provides US companies with certainty and access to world-class talent. With a strong commitment to continuous upskilling and a culture of innovation, Ireland stands at the forefront of emerging technologies like AI, robotics, and advanced manufacturing.
Ireland’s economy thrives, in part, due to its diverse human capital, enriched by immigration. Currently, approximately one in five workers in Ireland are non-Irish citizens, providing a vital link to the wider EU talent pool. In today’s globally connected business landscape, where collaborative innovation is crucial, Ireland’s cutting-edge sectors and rich talent pool are invaluable to trading relationships. Ireland’s globalized economy is evident, with 60% of its final exports integrating into global supply chains—either as fully or partially processed goods—the highest ratio in the world.
Ireland currently hosts all top 10 global technology companies, 18 of the world’s top 25 medical technology firms, and nine of the top ten pharmaceutical corporations. Remarkably, six of the world’s best-selling pharmaceutical products are produced exclusively in Ireland. In less than 50 years, Ireland has become the largest net exporter of pharmaceuticals in the EU, a success undoubtedly driven by its strong trade relationship with the US. The synergy between these sectors fosters greater research collaboration, access to diverse skill sets, connections to specialized local suppliers, and simplified global supply chain management.
With a new administration in the United States and a new Government in Ireland, we are increasingly aware of the opportunities and the importance of promoting business and economic interests on both sides of the Atlantic. These political shifts provide an opportune moment to strengthen relations with key markets, ensuring that Ireland remains a competitive and attractive location for trade and investment.
Both Ireland and the US have thrived on trade and internationalization, benefiting citizens in both countries. However, recent years have posed challenges to the open-border approach that has underpinned our shared prosperity. Now, it is crucial for our business communities to advocate for maintaining a global outlook. At Ibec, we support the Irish business model, which is built on strong foundations and has immensely benefited from the reciprocal relationship between Ireland and the US. This evolving partnership continues to drive collaboration, innovation, and investment across sectors, with Ireland’s strategic location, highly skilled workforce, and pro-business environment providing a distinct advantage for US companies navigating the European market.
