Overseas success drives growth at home

Carol Lynch, Tax Partner & Head of Customs and International Trade Services, recently featured in the Irish Times Special Report on the challenges and opportunities facing Irish exporters in a rapidly evolving global trade environment. Read her commentary below.

Carol Lynch says that of particular concern is that the US now represents our largest export market outside the EU, with 31 per cent of total exports in September – growth of 64 per cent on September 2023.

“The fact that September was our record month for exports overall and also our record level of exports to the US illustrates a vulnerability for the Irish economy in the context of anticipated tariffs that would lead to a contraction around the US multinational presence here following the election there,” says Lynch.

“Within this, a significant concern for us is that the pharmaceutical and chemicals sectors now represent nearly two-thirds of all exports and around 80 per cent of our exports to the US are in this space. Concerns around this may also have been heightened by the appointment of Robert F Kennedy jnr as health secretary. The outcome here remains to be seen, but with all of this, plus the likely Trump administration focus on tariffs and reshoring industries, we may have some adjustments ahead.”

Lynch also says that potential US trade fluctuations will be even more significant in the context of the reduction of exports to Britain over the first nine months of this year. However, she acknowledges that access to overseas markets continues to help indigenous companies to grow much faster.