Economic relations between Ireland and the Benelux Identifying future economic opportunities for Ireland in the Benelux region
Author:
Abstract:
This economic research report provides an overview of the trade and investment flows between Ireland and the Benelux in general and by major industries. The Netherlands and Belgium are the 5th and 6th most important export destinations of Ireland and this position even improved in the last decade. In the Benelux, Ireland is a more important trading partner for Belgium than for the Netherlands. It is mainly present in the medical instrument market, vaccines, and nitrogen compounds in Belgium and in medical instruments, packaged medicaments in the Netherlands. Luxembourg is not such an important partner given its size. As far as foreign direct investment inflows from the Benelux into Ireland are concerned, Dutch FDI inflows are increasing. Greenfield investments over the last 20 years were mainly in communications, hotels and tourism, financial services and software & IT services. Major trends / opportunities for collaboration between Irish and Benelux lie in the participation in the Green Deal efforts of the EU Commission and in the digitalization of the economies. Tourism can still be encouraged since the contribution of tourists from the Benelux in Ireland is still small, and because climate may cause tourists to gradually change their preference in favour of Northern Europe over the South. In recent years Brexit is playing a role and is driving the trade pattern for some time. In the longer run, the Green Deal and the digitalization will increase in importance. The speed of digitalization is differentiated between the Benelux countries and Ireland with Belgium often lagging behind, offering opportunities for the introduction and delivery of digital technology and skills. Collaboration in the Green Deal within the EU by international joined projects between Ireland and the Benelux should be encouraged over the next decade.