WorldCity, Annual Report: No. 15 Ireland - Chemicals, drugs drive exports | Connecting Local Business Leaders To The Global Economy

Annual Report: No. 15 Ireland - Chemicals, drugs drive exports

July 17th, 2006

Pharmaceuticals and tech sector remain the backbone of Ireland’s export industry.

Ireland’s fast and vibrant journey toward globalization continues to reap benefits. Trade with the United States, Ireland’s second most important trade partner after the United Kingdom, grew to nearly $38 billion in 2005, an increase of nearly 7 percent from the year earlier.

The United States imported Irish products ranging from pharmaceuticals to high-tech goods as U.S.-based multinationals solidified their presence in the small country, emerging as important R&D investors. Multinationals including Intel, Apple Computers, Gateway and Google have pumped money into the technology sector while Merck, Eli Lilly and Wyeth have created nearly 90,000 jobs over the past 10 years.

The Celtic Tiger has gained attention for its quick transformation into a global tech center, but more traditional export products still have fans. Alcoholic beverages, including beer, remained a major U.S. import. In 2005, U.S. beverage distributors imported some $363.3 million-worth of beverage, a 24 percent gain from 2004.

Although Ireland continued to see trade growth with the United States, the Irish Exporters Association has expressed concern that the country is moving more toward a service-oriented economy, rather than an export-oriented one, and that other European Union countries are holding onto their export markets better than Ireland. Ireland’s exports to the United Kingdom, its most important trade partner, fell nearly 3 percent in 2005.

U.S. imports from Ireland in 2005 included nearly $6.2 billion in chemical compounds, an increase of 12 percent; $5.3 billion in pharmaceuticals, reflecting a 1.6 percent slip; and $2 billion in medical equipment, a drop of more than 10 percent compared to 2004.

Imports of computers and accessories rose in 2005. Sales of computer peripherals reached $643 million, up from just less than $499 million in 2004, while computer shipments rose 12 percent to end the year at $543 million.

On the other side of the Atlantic, aircraft was the key export commodity headed to Ireland. Dublin-based Ryanair, one of the world’s leading low-cost airlines, uses only Boeing aircraft. Ryanair purchases of Boeing 737s helped push U.S. aircraft exports to $2.2 billion, up from $1.4 billion in 2004.

U.S. exports of airplane parts also took off, increasing 23 percent to value $292 million. The United States sold $180 million in regional jet parts, increasing 19 percent from $151 million in 2004. The United States shipped $112 million in parts for larger jet planes, an increase of 31 percent from a year earlier.

The United States also exported nearly $1.2 billion in orthopedic supplies to Ireland, up just slightly from the year before, and $679 million in computer parts, a 15 percent improvement. U.S. shipments of computer chips, however, were down 25 percent, to $326 million.

When it came to Irish trade, San Juan was the most important Customs district, handling more than $8 billion-worth of cargo linked to the pharmaceutical industry. New York ranked as the second busiest district, handling almost $6.8 billion in two-way cargo, an increase from $6.1 billion in 2004.

In 2005, the United States bought $28.6 billion-worth of products from Ireland and sent the European country $9.3 billion-worth. That $19.3 billion deficit was 5 percent greater than in 2004.