Seamus Coffey: US presidency to play only small part in influencing Irish investments

Multiple developments, such as Google competition lawsuit, could play a larger role for Irish investments than the US vote

President Donald Trump during a campaign rally at Miami-Opa-locka Executive Airport on Monday. Picture: Evan Vucci/AP

The outcome of the US election may only play a small part in influencing the future flow of investments into Ireland by American multinationals, according to one of the country's leading experts on foreign direct investment.

UCC economist Seamus Coffey has written a number of studies for the Department of Finance in recent years on the future for the huge sums the State collects in corporate tax revenues from foreign-owned firms.

He said the clash between Donald Trump and Joe Biden for the White House may not be the most important factor in determining incoming Irish investments that some think.

Mr Coffey said multiple developments could play a larger role for Irish investments than the US vote. 

These include last month's competition lawsuit taken by the US Department of Justice against Google, which could have implications for Apple too; the global moves towards taxing the digital giants; data protection issues; as well as other regulatory moves against big tech by Washington and Brussels.

Mr Trump has been vocal in the past four years in signalling out Ireland on numerous occasions for the large number of jobs created by US pharma giants, but so was the administration of Barack Obama administration, and other US administrations over the past 20 years, Mr Coffey said. 

"It's more complex and broader than the incoming administration, and there are several moving parts" influencing US investments into Ireland, Mr Coffey said.         

He said US multinationals play a huge role in the Irish economy, contributing €8bn a year in Irish wages alone, and they also pay out €4bn in buying in a multitude of services from Irish companies.              

Meanwhile, the price of gold climbed in the US ahead of the election as investors bought the metal as a hedge against the potential for a bitterly contested vote.