Few countries have been transformed by trade as profoundly as Ireland. Before joining the European Economic Community (EEC) in 1973, the vast majority of Irish exports were agricultural goods bound for British markets.
Despite being an independent nation, Ireland relied heavily on trade with the UK, but access to the EU’s Single Market opened doors across Europe and beyond, helping to diversify the economy and attract multinational investment. Today, Irish trade is global in reach and dominated by sectors such as pharmaceuticals, medical technology and digital services.
Ireland’s small, open economy is vulnerable to global trade shifts, so access to fair, rules-based markets is crucial. As an EU member, Ireland can use the collective influence of 27 nations to shape international trade policy and protect its interests.
EU membership has also helped Ireland weather several threats to trade such as the global economic crisis in 2008, Brexit and the COVID-19 Pandemic. Emerging risks have arisen from geo-political developments and threats to supply chains and critical infrastructure. The EU’s collective strength gives small economies like Ireland’s the power to defend open markets and sustain trade success.
Trade Policy
The European Union’s trade policy with countries outside the EU is governed by the Common Commercial Policy. This means the EU, rather than individual countries, negotiates trade agreements on behalf of all Member States.
The European Commission leads the process, proposing negotiating mandates and representing the EU in international forums like the World Trade Organization (WTO). Before negotiations begin, the Commission consults Member States to agree on shared priorities. It also works closely with the Council of the EU and the European Parliament, which must both approve trade agreements. In some cases, national parliaments also have a say, especially when agreements cover areas beyond EU powers.
Typically, EU trade agreements focus on removing barriers to trade by lowering or eliminating tariffs on goods, simplifying customs procedures, and reducing regulatory obstacles.
EU trade agreements make it easier to do business by:
- Cutting or removing customs tariffs.
- Simplifying customs procedures and reducing red tape.
- Protecting intellectual property like trademarks.
- Promoting fair competition and environmental standards.
- Including commitments on human rights and responsible business conduct.
For Irish citizens, this means:
- More affordable goods and more choice in shops.
- New export opportunities for Irish and EU companies.
- Stronger global rules that prevent unfair or illegal trade.
The EU’s trade policy is regularly updated to respond to global economic shifts and new challenges, with the aim of making Europe stronger and more resilient while keeping global markets fair and open. The EU is committed to rules-based international trade and is working closely with international partners to reform and strengthen the WTO. The Commission has also outlined a renewed trade approach aimed at building a coalition of like-minded countries to reform and modernise global trade rules.
These developments focus on ensuring global trade rules remain predictable, fair and fit for today’s economy. This approach is also reflected in the EU’s updated Generalised System of Preferences (GSP), which uses trade incentives to support sustainable development, labour rights and good governance in developing countries.
Trade Agreements in Focus
EU trade agreements help Irish businesses access global markets, reduce costs for consumers and protect high standards on food safety, sustainability and workers’ rights. Negotiating as part of the EU gives Ireland far greater influence and protection than acting alone. Recent significant agreements that benefit Ireland include:
Canada - CETA (Comprehensive Economic and Trade Agreement)
Since CETA’s provisional application in 2017, bilateral trade in goods and services between Ireland and Canada has grown strongly, increasing by 240% from €3.4 billion to over €11.85 billion in 2024. According to a report published in 2025 by the Conference Board of Canada, Canadian‑based multinational enterprises operating in Ireland employ more than 22,000 people.
Ireland is now Canada’s 15th largest trading partner, with Canadian foreign direct investment in Ireland up 131% since 2016. Key Irish export sectors include pharmaceuticals and chemicals, while Canadian service exports to Ireland, particularly in research and development, have also grown rapidly.
Building on the success of CETA, the EU and Canada launched negotiations on a Digital Trade Agreement in 2026. This is particularly relevant for Ireland, where digital services and technology‑led exports play a growing role in jobs, investment and trade.
Both countries continue to see strong potential for future growth in goods and services, which, if realised, could add a further €495 million to Canada–Ireland bilateral trade.
Mercosur
The EU‑Mercosur trade agreement creates a major partnership with the South American trading bloc of Brazil, Argentina, Uruguay and Paraguay. Following political agreement, it was signed in January 2026, and the interim Trade Agreement has been provisionally applied from 1 May 2026. The full Partnership Agreement is subject to a review by the Court of Justice of the European Union and will enter into force only after completion of the full ratification process.
The agreement is set to create new export opportunities for Irish producers. At present, tariffs of up to 55% apply to some EU agri‑food products, significantly limiting access to Mercosur markets. These barriers will be reduced or removed under the Agreement, opening new opportunities for Irish farmers and food producers. Strong safeguards are included to protect sensitive sectors, including limits on imports benefiting from lower tariffs and the continued application of strict EU food safety and animal health standards.
The Agreement also protects the names and origins of distinctive Irish products such as Irish cream and Irish whiskey, helping ensure they can only be sold under these names when they genuinely come from Ireland. Beyond food and drink, Irish businesses, including small companies, are set to benefit from reduced customs costs, simpler procedures and better access to public procurement markets.
Australia
The EU and Australia concluded negotiations on a free trade agreement in March 2026. The agreement is set to remove over 99% of tariffs on EU exports to Australia, creating new opportunities for Irish exporters, particularly in agri‑food, beverages and high‑value manufactured goods.
Irish farmers and food producers will benefit from improved market access, while sensitive sectors are protected through import limits and safeguard mechanisms. All imports from Australia will continue to be subject to the EU’s strict food safety and animal health standards.
The agreement also improves access for services, including professional, business and digital services, and strengthens cooperation on data flows and digital trade. For Ireland, as a small, open and services‑led economy, the agreement supports export diversification and reinforces stable, rules‑based trade in a rapidly growing region.
The EU–Australia trade agreement will enter into force after EU approval, European Parliament consent, and ratification by Australia.
India
Following the conclusion of talks with Australia, the EU finalised a Free Trade Agreement with India in January 2026, marking a significant step in strengthening trade engagement in the Indo‑Pacific region.
The Agreement is the largest trade deal ever concluded by either side and is set to eliminate or reduce tariffs on over 96% of EU goods exports to India, including high tariffs on key agri‑food products. It is expected to be particularly beneficial for Irish whiskey producers, as it includes a phased reduction of India’s high tariffs on spirits. India is both the world’s largest whiskey market and the fastest‑growing destination for Irish whiskey exports.
The agreement will also significantly improve access for EU goods and services. Trade in services between the EU and India has grown strongly in recent years, highlighting the potential benefits for Ireland’s services‑led economy, particularly in sectors such as pharmaceuticals, technology and business services. Separate negotiations on investment protection and on the protection of distinctive product names are continuing alongside the Free Trade Agreement.
Ireland’s role in EU Trade Policy
Ireland plays an active role in shaping EU trade policy. In the Council of the European Union, a government minister represents Ireland’s position on trade and helps decide on common EU negotiating positions. Irish Members of the European Parliament (MEPs) also play a key role by examining trade laws and agreements, and they have the power to approve or reject major deals. Some trade agreements may also need approval from the Oireachtas, especially if they include measures that require each Member State’s ratification.
In Ireland, several departments and agencies work together to ensure that businesses and workers benefit from opportunities created by EU trade agreements:
- The Department of Foreign Affairs and Trade (DFAT) represents Ireland’s strategic interests in EU and global trade matters.
- The Department of Enterprise, Tourism and Employment (DETE) supports businesses and monitors trade rules.
- Enterprise Ireland helps Irish companies export and find partners overseas.
- Bord Bia promotes Irish food and drink abroad, while the IDA Ireland attracts international investment.
The UK’s exit from the EU (Brexit) created new challenges to trade between Ireland, Northern Ireland and Great Britain, risking disruption and a return to a hard border on the island of Ireland. After intensive EU-UK talks, agreements were reached to protect the peace process, keep all-island trade flowing, and provide a stable basis for EU-UK trade.
These agreements include:
The EU-UK Trade and Cooperation Agreement (TCA): The TCA provides zero‑tariff, zero‑quota trade in goods between the EU and the UK. However, customs declarations, rules of origin compliance and various checks are required. These requirements add costs and paperwork compared with trading within the Single Market.
The Protocol on Ireland/Northern Ireland: The Protocol prevents a hard border by keeping Northern Ireland aligned with certain EU Single Market rules for goods, while it remains in the UK’s customs territory. This protects North–South trade and the integrity of the EU Single Market.
The Windsor Framework: Agreed in 2023, the Framework refines how the Protocol works, including ‘green lane’ arrangements for goods staying in Northern Ireland with minimal processes, and ‘red lane’ procedures with full checks for goods moving onward into the EU Single Market.
Over the past three decades, EU-supported programmes have helped businesses, communities, and institutions on both sides of the border work together, creating stronger economic and social links and supporting trade.
- PEACEPLUS: Running from 2021 to 2027 and managed by the Special EU Programmes Body (SEUPB), PEACEPLUS is a €1.1 billion programme funded by the EU, the Irish and UK governments and the Northern Ireland Executive. It promotes reconciliation and community development, but also places a strong emphasis on economic regeneration, SME growth, and cross-border trade.
- InterTradeIreland: An all-island body created under the Good Friday Agreement that is jointly supported by the Irish and UK governments, with additional EU backing. InterTradeIreland helps SMEs on both sides of the border to trade and innovate.
The EU-UK Trade and Cooperation Agreement (TCA)
The Single Market
The EU Single Market is the world’s largest trading area, allowing goods, services, capital and people to move freely across Member States. Membership of this market is the foundation of Ireland’s modern, export-driven economy. It has helped attract much of the country’s foreign investment and allowed Irish firms to scale up quickly and trade competitively abroad.
Single Market standards such as those for food safety and consumer protection are consistent across Europe, creating certainty for both businesses and customers. In times of global economic uncertainty caused by geopolitical challenges and trade tensions, the Single Market provides EU businesses with stability, resilience, certainty, and a shield against market risks.
However, the Single Market remains incomplete and the IMF estimates that internal barriers to trade are equivalent to a 45% tariff on goods, and a 110% tariff on services. In May 2025, the Commission adopted a new Single Market Strategy and a Single Market Roadmap to 2028 is currently being developed.
The Single Market Strategy includes over 50 proposals and focuses on:
- Dismantling internal barriers to trade and investment.
- Simplifying regulations to make it easier for businesses to operate across borders.
- Stimulating job creation and economic growth.
- Supporting the green and digital transitions.
The Single Market Roadmap to 2028 is expected to:
- Set clear deadlines for removing internal barriers in areas such as finance, services, energy, and telecommunications.
- Remove barriers to knowledge and innovation, facilitating the free movement of ideas and research across the EU.
- Implement a unified set of rules for innovative companies to operate seamlessly across all EU member states.
Implementation of the Single Market Strategy is supported by EU funding instruments, including the Single Market and Customs Programme 2028-2034, which helps strengthen enforcement, market surveillance and customs cooperation across the EU. The Commission is also advancing reform of the EU Customs Union to modernise customs procedures and better enforce Single Market rules.
Trade tools and instruments
The EU provides practical tools and rules to help Irish businesses sell abroad and quickly resolve problems when they arise. These tools help with finding tariffs and product rules, meeting origin requirements, reporting barriers, and fixing issues efficiently.
- Access2Markets: Look up tariffs, documents, product standards, and calculate rules of origin with the ROSA tool for any destination market.
- Enterprise Europe Network: A support network for SMEs with international ambitions. It brings together experts from member organisations that are renowned for their excellence in business support.
- Single Entry Point: The first point of contact for all EU stakeholders facing potential trade barriers in third countries, or non-compliance with sustainability rules related to trade.
- SOLVIT: Free help when a public authority in the EU misapplies Single Market rules and blocks rights or market access.
- Single Digital Gateway: A one‑stop portal explaining procedures, rights and obligations for doing business across the EU.
- Trade defence: If dumped or subsidised imports harm your sector, EU anti‑dumping/anti‑subsidy and safeguard measures can restore fair conditions. Businesses can submit evidence to trigger an investigation.
- SME Chapters: All new trade agreements include a chapter dedicated to helping SMEs on both sides to access information about trading on each other’s markets.
Ireland also offers hands-on programmes, many co‑funded by the EU, to help firms start exporting, grow cross-border sales, and meet EU rules. These supports provide advice, vouchers, grants and in market expertise tailored to SMEs.
- Enterprise Ireland: Export readiness training, market research, in‑market offices and grant programmes that help first‑time and growing exporters.
- Local Enterprise Offices: Mentoring, training and the Technical Assistance for Micro Exporters (TAME) grant to test new markets for micro‑businesses.
- InterTradeIreland: Vouchers and advisory to start or scale cross‑border trade on the island, part‑funded through PEACEPLUS.
- Bord Bia: Sector‑specific supports for food and drink exporters, including buyer access and sustainability tools.
- NSAI and Revenue: The National Standards Authority of Ireland (NSAI) and Revenue provide guidance on CE marking, conformity assessments, customs procedures, and Authorised Economic Operator (AEO) status, helping products and shipments meet EU requirements.
Trade News
Latest trade news
The European Commission has put forward two proposals paving the way for the implementation of the EU-US Joint Statement of 21 August 2025. These steps contribute to restoring stability and predictability in EU-US trade and investment relations, to the benefit of business, workers and citizens.
The EU and US have issued a Joint Statement establishing a framework for fair, balanced and mutually beneficial transatlantic trade and investment.
The EU and US have issued a Joint Statement establishing a framework for fair, balanced and mutually beneficial transatlantic trade and investment.
The European Commission has decided to open an infringement procedure by sending a letter of formal notice to Ireland (INFR(2025)4018) for breaching Directive 2006/123/EC on services in the internal market in the context of property services.