US firms invest €96bn in Ireland over 5 years

US corporate investment in Ireland amounted to nearly $130bn (€96bn) over the past five years; roughly 14 times larger than the amount American companies spent in China over the same period.

A new report — compiled by leading Wall St economist, Joseph P Quinlan, on behalf of the American Chamber of Commerce in Ireland — shows that, despite the economic downturn, Ireland’s importance to the US corporate effort has intensified.

Between 2008 and 2013, US firms invested more in Ireland than in the previous 58 years combined, the report states.

American Chamber president Peter Keegan said that recent investment has upped the stock of US investment in Ireland to more than $200bn for the first time. He added that American foreign direct investment stock in Ireland is now equal to the combined US stock in France and Germany and is nearly 20% larger than the country’s combined investment in the so-called ‘BRIC’ group of emerging nations of Brazil, Russia, India and China.

“Ireland has become hugely important for the success of corporate America over the past five years,” Mr Keegan said.

Also welcoming the report, Jobs and Enterprise Minister Richard Bruton said: “Deepening and developing our economic ties with the US will be crucial for our economic recovery and forms a major part of the Government’s plans for jobs and growth.”

Commenting on his report, Joseph Quinlan said the results underline Ireland’s high standing amongst US companies.

“Ireland now ranks the number one export platform in the world for US affiliates. This underscores the importance of Ireland in the global value chains of US firms. Corporate America’s presence in Ireland is also tangible, visible, palpable, material, physical and concrete, making Ireland a hugely important strategic cog in the global operations of many of the world’s top corporations.”

However, Mr Keegan reiterated his call for no further personal tax increases, in the budget, saying more opportunities need to be provided to entice Irish graduates home to work.

“We have to accept that the current levels of personal taxation, in this country, make the task of retaining and attracting talent that bit more difficult. In these circumstances, if I was to ask one thing of government colleagues, in advance of the forthcoming budget, it is to think very hard about personal tax levels and their implications for our future competitiveness as an FDI location,” he said.