Ireland's Current Account with the US

Source publication: International Trade in Services 2018

Get the data: StatBank (BPA04)

In the series above, imports of services from the US were consistently greater than exports of services to the US, as shown by the large negative trade in services deficit. This trade in services deficit was at its lowest value in 2016 at €34.9bn but this balance increased in subsequent years due to increases in the exports of business services. In 2018, the trade in services balance stood at a deficit of €26.2bn. On an international scale, the US made up 25% of Ireland's total imports of services in 2018, accounting for the second largest share of Irish services imports after the EU (36%). In terms of exports, the US accounted for 12% of Ireland’s total exports of services in 2018, representing the second largest share of Irish services exports after the EU (45%).

^{Please note: in Figure 3.4 some of the services export figures have been supressed for confidentiality reasons, see Table 1.2 for more details.} 

Source publication: International Trade in Services 2018

Get the data: StatBank (BPA04)

Figure 3.5 depicts the growth in imports of business services from major Irish trade partners. The series on imports of business services from the US increases significantly after 2014, illustrating Ireland’s high growth in imports of business services from the US compared to the UK and EU. The US accounted for 36.6% of total business services imports in 2018.

Source publication: International Trade in Services 2018

Get the data: StatBank (BPA04)

When breaking business services down into its main components, it is evident that the import of research and development (R&D) services are the largest component in services imports from the US. In 2018, R&D imports were €13.9bn and accounted for 29.5% of total imports of services from the US. Figure 3.6 below illustrates how R&D services imports from the US have become Ireland’s most significant services import since 2012 and growth in business services has largely been driven by increasing trends in R&D services imports. Other business services (which includes consulting, technical and operational leasing services) at €12.6bn, accounted for 27% of total import of services from the US in 2018.

^{Please note: in Figure 3.6 above R&D service imports for 2014 have been supressed for confidentiality reasons.} 

Source publication: International Trade in Services 2018

Get the data: StatBank (BPA04)

The US is Ireland’s largest provider of R&D services, accounting for 61% of Ireland’s total R&D imports in 2018. This significantly outweighs the share of R&D services from the EU28, which accounted for only 10% of Ireland’s total import of R&D services in 2018. The majority of the value of business service imports consists of ongoing payments to intergroup affiliates in the US for the performance of R&D services on their behalf.

Source publication: International Trade in Services 2018

Get the data: StatBank (BPA04)

Figure 3.9 shows the main components which contribute to the increasing trend in exports of services to the US are business services and royalties/licenses (for the use of outcomes of R&D). Exports of business services to the US have grown in recent years to represent a larger share of total global business services exports.

^{Please note: in Figure 3.9 some of the services export figures have been supressed for confidentiality reasons, see Table 1.2 for more details.} 

Source publication: International Trade in Services 2018

Get the data: StatBank (BPA04)

Exports of business services to the US as a percentage of total business services exports grew by 18% from 6% in 2012 to 24% in 2018. In comparison, imports of business services from the US grew as a percentage of total business services imports by 1% from 36% in 2012 to 37% in 2018.