Economic Data
(in U.S. dollars, 1998 figures unless otherwise noted)
Total GDP (In U.S.$): $67.1 billion
GDP growth: 9.5%
Per Capita GDP (In U.S.$): $18,600
Inflation: 2.4%
Unemployment rate: 7.7% (1998), 6.3% (est. 1999), 5.7% (est. 2000)
Trade Balance: +$17.2 billion
Exports (U.S.$): $60.9 billion: chemicals, data processing equipment, industrial machinery, live animals, animal product.
Export Trading partners: United Kingdom 24%, Germany 12%, United States 11%, France 8%
Imports (U.S.$): $43.7 billion: food, animal feed, data processing equipment, petroleum and petroleum products, machinery, textiles, clothing
Import Trading Partners: United Kingdom 34%, United States 15%, Germany 6%, France 6%
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The following are a collection of recent business stories from The Irish Times and other publications.
Greencore lifts annual profits
Greencore has announced a 15 percent increase in its full year operating profits to 82.6 million. But its headline performance was held back by a poor performance from its United States associate, Imperial Sugar.
All of the company’s divisions generated improved profit margins but despite the strong underlying performance, profits before tax and exceptional items rose by just .5 percent to 74.3 million.
A poor performance by Imperial Sugar, which was hit by the impact of adverse weather conditions and integration costs following its recent acquisitions, acted as a drag on pre-tax profits as did a higher interest charge.
Greencore, which holds a 15 percent stake in the U.S. company, said it no longer sees it as a long-term strategic stake.
Pension schemes warned of Y2K risks
Company pensions considering changing fund managers should wait until the New Year because of potential dangers from the millennium bug, a conference was told yesterday.
Speaking at an investment conference organized by the Irish Association of Pension Funds (IAPF), Joe Byrne, group actuary and deputy managing director of Coyle Hamilton, said the trustees should be wary of the effects of Y2K.
“The risks associated with the millennium bug and the custodianship of assets in foreign locations cannot be understated,” he said. “Deferring any switch until early in the new year would be a more prudent course of action.”
The theme of the conference was “Investment Choice into the 21st Century,” and Byrne said the anticipated influx into Ireland of overseas investment managers as a result of the euro had not transpired to date.
He said that UK, United States and European fund managers looking to enter the Irish market have struggled to establish a foothold because of the competitive fee rates prevailing in Ireland.
Setback likely for docklands
Negotiations with the European Commission over the fate of rent and rates relief for businesses in Dublin’s docklands are likely to result in the phasing out of special measures at the end of this year, Brussels sources say.
Meanwhile European Union finance ministers remained deadlocked over proposals for a withholding tax on non-resident savings accounts, with the British chancellor Gordon Brown, virtually alone against his 14 fellow ministers but still insisting “we are winning the argument.”
Republic of Ireland
Location: Western Europe, occupying five-sixths of Ireland in the North Atlantic Ocean, west of Great Britain.
Geographic Area: 70,280 square kilometers (43,672 square miles), slightly larger than West Virginia
Climate: Temperate maritime, modified by North Atlantic current, mild winters, cool summers, consistently humid, overcast about half the time.
Capital City: Dublin
Population: 3,632,944 (July 1999 est.)
Languages: English, Irish (Gaelic) spoken mainly in areas along the western seaboard.
Time Zone: Ireland shares the same time zone as London located on the prime meridian. It is five time zones east of the United States.
Type of Government: Democracy. Constitution was adopted in 1937 and was strongly influenced by the United States Constitution and British legal and political structure. There is an elected parliament (Dail) with 166 members and an upper house (Seanad) of 60 members. Members of the Dail are elected for a maximum term of five years. Members of the Seanad are elected from a panel of candidates for a term of five years. The president is head of state and is directly elected by popular vote for a seven-year term. The president’s role is primarily ceremonial. Political power is held mainly by the prime minister (Taoiseach) and the Parliament.
Administrative divisions: Twenty six counties; Carlow, Cavan, Clare, Cork, Donegal, Dublin, Galway, Kerry, Kildare, Kilkenny, Laois, Leitrim, Limerick, Longford, Louth, Mayo, Meath, Monaghan, Offaly, Roscommon, Sligo, Tipperary, Waterford, Westmeath, Wexford, Wicklow.
Chief of state: President Mary McAleese
Head of Government: Prime Minister Bertie Ahern
Currency: 1 Irish Pound (punt) = 100 pence
Exchange rate: U.S.$1 = 0.7809 pound (punt) (Dec. 1, 1999)
Economic and political condition: The Republic of Ireland won independence from the United Kingdom in 1922 to become a free state.
Economic and political conditions: The political system is considered stable with no wide policy changes between various administrations. Ireland has six political parties: Fianna Fail, Fine Gael, and the Progressive Democrats are considered right of center maintaining conservative policies. The more liberal, left of center parties are Labour Party, Democratic Left and Workers Party. Last week marked some remarkable days in the quest for peace in Northern Ireland, which is still under British sovereignty, where a coalition government was being formed in what newspapers in Ireland were hailing as a march toward peace. The high rate of growth is expected to slow slightly in 2000, with economists projecting real GDP to grow 6 + percent
Tarriffs, Trade,Taxes, Trademarks
European Union: As a member of the European Union, Ireland must assure that its legislation complies with the European Community under the Treaty of Rome. There are four main institutions of the Economic Community that carry out the drafting and administration of the legislative process; the EC Commission, the European Parliament, Council of Ministers, and the European Court of Justice. The European Commission is in Brussels and includes 17 commissioners, each of whom is appointed by EU member governments.
Single Internal Market: Ireland is fully participating in the European Union’s program to develop a more united and barrier-free internal market for trade among the 15 member countries. The program is designed to stimulate greater economic growth, creating a market of 320 million consumers with freedom of movement of goods, services, labor, and capital. It was expected to create greater competition and produce lower prices for the consumer. And it is expected to create new product standards and regulations for all suppliers to the European Market.
The Internal Market program, experts suggest, presents both a challenge and opportunity for American companies doing business in the European Union. American firms that seek to sell products in Ireland or establish facilities there should have an understanding of both the Irish and European Union regulations. In some cases, the national product standards have been replaced by European Union-wide standards. The united standards make it easier for U.S. suppliers to produce for export to the union since one product will be accepted for sale in all 15 countries.
Trade, Regulations and Tariffs: As a member of the European Community since 1972, Ireland is part of a customs union which allows free trade among the member countries. However, for countries like the United States who aren’t involved with the union, a common tariff is placed on all products that are imported. The tariff is based on the international Harmonised System of product classification, and duty rates on manufactured good from the United States generally range from 5 to 8 percent and are usually based in the c.i.f value, or the price of the goods plus packing costs, insurance, and freight charges to the port of entry. Most raw material enters duty free or at low rates while agricultural products face higher rates and special levies.
Taxation: The value-added tax, frequently called by its acronym VAT, is charged on the sale of goods and services within the country. Unlike the customs duty, which is the same for all EC member countries, the VAT is established by the tax authorities of each country and differs from country to country. In Ireland, the standard VAT rate is 21 percent. Excise taxes are also levied on a small number of products, including gasoline, diesel fuel, spirits, beer, wine, bottled water, cider, tobacco, motor vehicles, televisions, video recorders, compact discs, and matches. The excise tax rates vary depending on the product and is paid by the importer in addition to any custom duty or VAT.
Free Trade Zones: Ireland has the world’s oldest free trade zone, the Shannon Free Trade Zone at Shannon International Airport, established in 1947. American firms benefit by the free zone by having a European base of supply to assure prompt delivery and service, while maintaining inventory at a low cost, and being able to qualify for the reduced 10 percent corporate tax rate in Ireland.
Key Contacts – Ireland
Rhode Island Export Assistance Center (RIEAC) and World Trade Center, Bryant College
Raymond W. Fogarty, Director
Edward Barr, World Trade Center Manager
Telephone: (401) 232-6407 or (401) 232-6408
Fax: (401) 232-6416
Rhode Island Economic Development Corporation (RIEDC)
Maureen Mezei, International Trade Director
Telephone: 222-2601, ext. 123 e-mail: mmezei@maildoc.gov
U.S. Small Business Administration
Marilyn Bogue, International Trade Officer
Telephone: 528-4585 e-mail: bogue@sba.gov
Embassy of Ireland
2234 Massachusetts Ave. N.W.
Washington, D.C. 20008
Telephone: (202) 462-3939 Fax: (202) 232-5993
Consulate General of Ireland
345 Park Ave.
New York, New York 10154-0037
Telephone: (212) 319-2555 Fax: (212) 980-9475
Country Profile
Compiled by Providence Business News,
in collaboration with Bryant College Export Assistance Center.
