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 include shifts in US trade policy, China’s evolving economic model, and increased competition between major powers. 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.
In 2021, the EU updated its trade strategy with the idea of ‘Open Strategic Autonomy’. This aims to make Europe stronger and more resilient while keeping global markets fair and open. The EU remains committed to the World Trade Organization (WTO) and works to better connect trade with sustainability, climate action, and digital innovation. This also includes work on digital trade, data flows and services, which are particularly significant to Ireland’s economy.
The EU has one of the world’s largest networks of trade agreements, with major partners like Canada, Japan, South Korea and Singapore. It has also concluded agreements with New Zealand and Australia, and continues discussions with others, including the Mercosur bloc in South America.
For Ireland, most trade takes place within the EU Single Market, but the United States, the United Kingdom and China are also among its most important trading partners outside the EU.
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 is working with international partners to modernise global trade rules and ensure businesses compete on a level playing field. In 2025, the Commission outlined a new trade strategy aimed at building a coalition of like‑minded countries to reform and modernise global trade rules. Inspired by partnerships such as the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP), the strategy aims to create a network of open, rules-based trade partners who share the EU’s values on fairness, sustainability, and security.
Trade Agreements in Focus
EU trade agreements provide Irish businesses with access to new markets and reduce consumer costs. Ireland alone wouldn’t have the bargaining power to secure favourable market access or insist on high environmental and food safety standards but by negotiating as a bloc, the EU uses its collective influence to secure terms that protect Irish interests and create new opportunities. Two significant agreements that benefit Ireland are:
• CETA (Comprehensive Economic and Trade Agreement)
Since CETA's provisional application in 2017, bilateral trade in goods and services between Ireland and Canada has soared by 240%, from €3.4 billion to more than €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 export sectors include pharmaceuticals and chemicals from Ireland, with Canadian service exports to Ireland - especially in R&D and computer services - growing rapidly. Both countries 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 represents a major partnership with the South American trading bloc of Brazil, Argentina, Uruguay, and Paraguay. In December 2024 political agreement was reached on this ambitious deal that aims to lower tariffs and expand access for Irish exports like food and beverages.
Irish farmers will particularly benefit as tariffs of up to 55% on beef, dairy, and other products will be eliminated, opening new market opportunities. The agreement includes safeguards that protect Irish farmers by limiting import quotas and ensuring compliance with strict EU food safety standards. It also protects Irish geographical indications. These are official labels that guarantee products like Irish cream and whiskey genuinely come from Ireland, ensuring they maintain their high value. Beyond food and drink, small businesses gain from reduced customs costs, simplified procedures, and better access to public contracts.
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 (DFA) 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 announced 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.
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 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.
The European Commission decided to open infringement procedures by sending letters of formal notice to Czechia, Ireland, Italy, Malta, Slovenia, and Slovakia for failing to meet their obligations on on customs data transmission.