Trade in Ireland

Ireland

Over the last half century Ireland has significantly shifted it’s economy from one vastly reliant on agriculture to one highly dependent on trade. Although Ireland does import some products, the economy is fueled by its exports. Due to Ireland’s attractive policies, multinational corporations have all but over taken the exporting sector of Ireland’s trade. Recent studies have shown that Ireland’s five biggest trading partners are the United States, United Kingdom, Belgium, Germany and France, with the U.S. being the largest.

Because Ireland is part of the European Union, the European Commission negotiates trade agreements on behalf of Ireland and the 26 other countries of the EU. Although Ireland itself is a member of the World Trade Organization, the country is also bundled in with the membership of the European Union. Because of Ireland’s incorporation in EU’s membership in the WTO, it can enjoy trade agreements with countries such as Korea, Chile, Mexico and South Africa. The trade provisions of the EU-Chile Association Agreement came into effect on February 1, 2003. In March of 2005 the agreement was ratified and was put into full force greatly boosting the two countries bilateral trade relationship. Possibly one of Ireland and the EU’s biggest trade agreements is the EU-Mexico Economic Partnership, Political Cooperation and Cooperation Agreement. When this Agreement was put into action in 2000, it established a Free Trade Area between the countries of the EU and Mexico. Currently the European Union is in negotiations with dozens of other countries and trade blocs to increase its reach of free trade.

Ireland’s membership in the EU allows it to trade relatively free among other countries in the European Union. This is not the case for non-EU countries. Ireland has three major taxes that it implements on imported goods. The first is the custom duty tax. Ireland abides by the EU’s Common Customs Tariff to determine this tax. This tax...