In light of Donald Trump’s shocking ‘Liberation Day’ tariff announcements, the Ireland Canada Business Association is calling on the Irish government to prioritise Ireland’s relationship with Canada as a matter of urgency. Its is now clear that Ireland can no longer rely on its trade relationship with the US and so must urgently diversify its Foreign Direct Investment base.
Canada presents the most valuable opportunity to achieve this. Canadian companies already have a major economic influence in Ireland, employing over 15,000 people directly and a further 12,000 indirectly. These significant employers include Irish Life, Air Canada, Circle-K, Molson Coors, TELUS International, TD Bank, Irving Oil and Brookfield Asset Management.
An ICBA member sentiment survey revealed that these, and many other, Canadian multinationals have chosen Ireland as their gateway to Europe because of strong cultural affiliations, availability of English-speaking talent and connectivity. With Canada now explicitly expressing its intention to get closer to Europe, many other Canadian companies will now be considering Ireland as a potential base for their EU operations.
Moreover, in an independent economic report commissioned by the ICBA, Economist Jim Power identified that, given the right conditions, Irish exports to Canada could double within 5 years.
Dr Deirdre Giblin, chair of the ICBA:
“Donal Trump’s so-called ‘Liberation Day’ tariff announcements are a further blow to free trade, positive bilateral relations and the global economy. This regressive move will dramatically increase the cost of doing business between the US and Ireland, potentially undoing decades of relationship-building by businesses and policy-makers on both sides.
In light of this, the Irish government must now urgently focus on diversifying our FDI base and further building our relationship with Canada – one of the world’s largest economies and a great friend to Ireland. Canada has explicitly expressed its desire to get closer to Europe, and Ireland is in prime position to be the gateway for it to do so.
The Irish government must now ratify CETA as a matter of urgency, and continue to work hard to address Ireland’s barriers to business and make this country a highly attractive home for Canadian multinationals.”
Right now, Ireland and Canada have a valuable opportunity to offset the negative impacts of Trump’s protectionist policies by building on and investing in our economic relationship. The ICBA has identified two key ways to do this:
- The Irish government must ratify CETA
CETA is a highly important trade deal between Europe and Canada, enabling freer trade between the two. Key features of CETA include:
- Removal of 99% of customer duties.
- Ending restrictions on open access to public procurement contracts.
- Offering predictable conditions for investors.
CETA was passed by the EU Parliament in 2017. The first year after the provisional implementation of CETA, there was more than 30% rise in the value of goods traded between Ireland and Canada. Today, 15 member states have ratified CETA, and the ICBA is urging the next government to do likewise.
- Make it easier for Canadian companies to do business in Ireland
Our members – some of Canada’s largest employers – have told us that the rising cost of doing business in Ireland, and the increasing regulatory burden, are a significant risk factor for their further growth in Ireland.
Specific factors driving up costs for ICBA member companies include labour (63%), energy (37%), staff retention (32%), regulatory compliance (26%), rent (26%) and insurance (21%). Respondents also identified new regulations such as pension autoenrollment and employee leave as areas of concern.
Other areas hampering further growth include the cost and availability of housing for rental and ownership purposes, water and wastewater infrastructure, and availability of alternative energy.
By addressing these areas as a matter of urgency, Ireland will not only attract new Canadian multinationals to establish in Ireland, but also facilitate the further growth of those already here. Policy needs to be directed towards investment in these areas, not least because this is exactly what Ireland’s competitors are doing.
Dr Deirdre Giblin is available for further comment
For interviews & further Info: Patrick Haughey, ICBA Media Relations 087 2394054