Ireland’s Most Favored Nation Status Among US Multinationals

Ireland continues to punch above its weight when it comes to attracting the foreign capital of multinationals. Indeed, as the accompanying exhibits highlight, Ireland continues to attract more than its fair share of global and US foreign direct investment.

This is all the more impressive given the slowdown in cross-border global FDI over the past few years. The deglobalization of manufacturing, the push to “produce at home’, the rise of investment protectionism, the splintering of geopolitical fault lines, the effects of digitalization global investment in goods and services—all of these variables have converged this decade to slow the pace of cross-border FDI.

But in this sea of uncertainty, Ireland remains an attractive hub for foreign direct investment for numerous reasons. One, Ireland offers one of the lowest corporate tax rates in the EU, accompanied with favorable tax treatment around research and development.

Thanks to its robust digital infrastructure, the country remains a hub for the industries of the 21st century—think technology, pharmaceuticals and life sciences, and financial services.

Two, Ireland remains the only English-speaking gateway to the EU, one of the largest and wealthiest economic blocs in the world. Three, the nation possesses a young and highly skilled labor force, supported by a business-friendly government that makes doing business in Ireland easier and more efficient than in most of Europe. And four, thanks to its robust digital infrastructure, the country remains a hub for the industries of the 21st century—think technology, pharmaceuticals and life sciences, and financial services, and is well positioned to participate in such key sectors as renewable energies and artificial intelligence.

Added to the above, corporate America still needs the resources of a strategic partner like Ireland. The world is changing. But what is not changing for US firms is the constant need for talent—skilled and unskilled—in a world where labor market growth has peaked (including China), and immigration is frowned upon. At the end of 2024, the US unemployment rate was hovering around 4%, while more than 8 million jobs were unfilled. Combined with tougher anti-immigration policies of the Trump administration, US firms will remain dependent on nations like Ireland to drive future growth.