3 Advancing Ireland’s FDI and Trade Value Proposition

As a small open economy deeply embedded in Global Value Chains, FDI and Trade will remain central to Ireland’s growth model and economic strategy. Ireland’s trade policy objectives are embedded through her involvement in the EU and WTO, where Ireland continues to advocate for open sustainable trade. The signing of the EU-Chile Free Trade Agreement, and the successful completion of the inaugural Team Ireland Trade Mission Week (TITMW) to the Republic of Korea, both during H2 2023, show Ireland’s continued commitment to expanding trade opportunities and opening new markets. Strategies are also now approaching finalisation on the opportunities of digital trade and the opportunities from Ireland’s participation in Global Value Chains, while the existing Trade and Investment Strategy continues to be refined and implemented, including through the finalisation of a shared approach to communicating Ireland’s trading interests. IDA Ireland and Digital Manufacturing Ireland (DMI) continue to promote the transformation of Ireland’s FDI base to meet the twin transition, with sustainability investments and digitisation engagements continuing to perform well during 2023. The enterprise agencies are also working to ensure that FDI is embedded in local enterprise and in a regionally balanced manner, with over half of investments being made outside of Dublin and over €3.7 billion committed by FDI companies towards Research, Development & Innovation projects. 3.1 Promote Open, Rules-Based and Sustainable Global Trade

Timeline				Q1 2024: Finalise and publish report on ‘The Opportunities and
				Impacts of Digital Trade for Ireland’, to support Irish policy and
				influence at WTO
				Q1 2024: Successful advocacy for open sustainable trade at EU
				Trade Policy Committee, EU Trade Council and WTO Ministerial
				Council with ratification of new EU Free Trade Agreements and
				successful outcome of WTO MC-13
				Q2 2024: Progress all seven priority actions in the Trade &
				Investment Strategy
	Responsibility			Department of Enterprise, Trade and Employment
Update	Update		Indecon International Consultants were selected to undertake a review of the opportunities for Ireland in Digital Trade. The project commenced in May 2023. The draft report is under consideration by the Department of Enterprise, Trade and Employment, and is expected to be finalised in Q2 2024. The report details an analysis of international digital trade and its evolution, which informed policy considerations for Ireland in advance of the WTO Ministerial Conference in Q1 2024. It is expected the findings will also support Ireland’s wider engagement with EU colleagues regarding the development of digital trade principles in the Free Trade Agreement negotiations.
			Work to promote open, rules-based trade is an ongoing priority for Ireland, interwoven in all of the Department’s Trade policy activities, and high-level engagements including Ministerial attendance at EU

Trade Councils. This is an ongoing process. In December 2023 the EU-Chile FTA was signed by the EU, the Member States, and Chile. At the WTO, Ireland consistently advocates for open, rules-based and sustainable trade policy, including through involvement in multilateral and plurilateral initiatives, with the Geneva-based team supported by a programme of visits from Department of Enterprise, Trade and Employment representatives including attendance at the WTO Senior Officials Meeting in October 2023. Trade Ministers met in Valencia in Spain in October 2023, and again in November in Brussels for their formal meeting, engaging on how trade policy can better maintain and strengthen competitiveness on international trade relations with key trading partners, as well as discussing preparations for the WTO Ministerial Conference in 2024.

Support for Ireland’s Economic and Trade Ecosystem is ongoing and the Department of Enterprise, Trade and Employment continues to refine its dashboard approach to pressing trade issues in tandem with the National Competitiveness and Productivity Council who published Ireland’s Competitiveness Challenge in H2 2023. Implementation of recommendations contained in the review of Local Market Teams (LMTs) are substantially completed, and the HQ Markets Team are overseeing the formation of local and regional markets, promoting collaborative working, and supporting LMT members in meeting their objectives in-market. The Department of Enterprise, Trade and Employment finalised its shared approach to communicating Ireland’s interests as a trading nation during 2023. This common approach to communications with colleagues across Team Ireland, reinforces the important role that trade and investment plays in contributing to the wider economy in Ireland.

3.2 Deepen Irish Participation in Global Value Chains

	Timeline		Q4 2024: Review report published and next steps confirmed
	Responsibility			Department of Enterprise, Trade and Employment
Update	Update		An expert group on Global Value Chains (GVCs) was established to provide fresh perspectives in understanding business-business relationships, mechanisms for increasing efficiency, productivity, competitiveness, entrepreneurship, and SME growth within GVCs. The Expert group completed the research phase of their work during 2023 and are expected to complete the report during H1 of 2024. The report includes the identification of critical trade dependencies, and appropriate responses to maximise opportunities as well as risk mitigation considerations.

3.3 Promote Trade Opportunities

Timeline				Q3 2023: High-level Trade Conference
				Q3 2023: First Team Ireland Trade Mission week
				Q4 2023: Review of first Team Ireland Trade Mission week by Trade
				and Investment Council
	Responsibility			Department of Enterprise, Trade and Employment
Update	Update		A conference to raise awareness of the value of Free Trade Agreements (FTAs) in promoting market diversification and increasing Irish exports was held in Dublin Castle in H2 2023. This conference, the first in a series of annual Trade Horizons conferences, was attended by over 300 people. It received significant media coverage, successfully highlighting the importance of FTAs in promoting exports. Planning is underway for a Trade Horizons Conference which will take place in July 2024.
			The inaugural Team Ireland Trade Mission Week (TITMW), to South Korea, led by the Taoiseach Leo Varadkar TD was completed in November 2023. Plans for TITMW 2024 are at preliminary stage, with a decision expected in Q2 2024. A contingent of Enterprise Ireland client companies were introduced to potential South Korean investors, where a number of prominent and strategically-important contract signings took place. This included the signing of a joint venture by an Irish company and a major Korean corporation, for a joint data centre project running on fuel cell technology - the very first of its kind in Europe. The delegation also visited the new Korean National Institute for Bioprocessing Research and Training, or K-NIBRT, which is the first global partner in Asia of Ireland’s own NIBRT initiative. Additional meetings were held between the delegation and representatives from Korean pharma and tech industries. Bilateral meetings were further held between Minister for Enterprise, Trade and Employment, Simon Coveney TD and Korean Minister for Trade, Dr. Dukgeun Ahn. where it was agreed to strengthen bilateral ties between Ireland and South Korea.
			The report on TITMW to South Korea in November 2023 was finalised in Q1 2024. Feedback from participants indicate TITMW was successful with market access for Irish beef, and Korean Electronic Travel Authorization (K-ETA) visa exemptions noted as tangible outcomes as a direct result of the mission.

3.4 Transform the Sustainability Performance of the FDI Sector

Timeline				Q4 2023: Promote a coherent suite of advisory and financial
				supports for FDI clients to achieve their carbon reduction and net
				zero ambitions
				Q4 2024: Achieve 60 sustainability investments in the period 2021 to
				2024
	Responsibility			IDA Ireland
Update	Update		Through the promotion of its suite of advisory and financial supports for FDI clients, IDA Ireland secured 25 sustainability investments during 2023. This brought the total number of sustainability investments to 62 over the three-year 2021-2023 period and exceeds the four-year sustainability target set out in IDA Ireland’s strategy “Driving Recovery & Sustainable Growth 2021-24”. Of the 62 investments, 20 investments were carbon abatement investments highlighting total client investment of €130m to reduce carbon emissions by 44,000t CO2. The primary focus of the carbon abatement investment by clients is in energy efficiency, process electrification and in on-site renewable energy generation with IDA grant support of approximately 21% provided under the Sustainable Recovery Fund and Environmental Aid Programme.
			IDA Ireland secured an additional 12 sustainability investments during H2 2023. Five of these projects focused specifically on carbon abatement, while others focused on building Ireland’s green economy capabilities. A total of 25 sustainable investments were approved during 2023, bringing the overall number approved since 2021 to 62 and surpassing the strategy target of 60 (103% of Q4 2024 target).

3.5 Increase Investments in our Regions

Timeline				Q4 2024: At least half of all FDI investments for 2021-2024 to
				locations outside Dublin
				Q4 2024: Progress the delivery of 19 advanced building solutions in
				regional locations and the development of strategic landbanks for
				utility intensive investments
	Responsibility			IDA Ireland
Update	Update		In the second half of 2023, a further 110 investment projects with 6,898 associated jobs have been approved. 66 (60%) of these approved investment projects have been outside of Dublin. In total 248 projects, with 18,796 associated jobs, have been approved in 20233. 132 of these projects went to regional locations (53%). This brings total regional investments to 392 against a target of 400 under the 2021-2024 IDA Ireland strategy (98% of regional target). Regional projects account for 53% of total investments approved in the current strategy to date.
			As of end 2023, IDA Ireland’s Property Division has completed eight of the 19 Advanced Building Solutions (ABS) in 7 locations across 4 regions including the Digital Manufacturing Ireland (DMI) centre. In H2 2023, IDA Ireland commenced an additional two ABSs in Galway and Sligo. The remaining ABS are at various stages of design, planning, procurement and site selection. IDA Ireland`s Property Division continues with infrastructure delivery and the active development of strategic landbanks in the regions across the existing portfolio to future proof same and support investments, with a view to also identifying the next phase of strategic sites for utility intensive investments. This is an ongoing activity and wholly dependent on identifying suitable lands with the appropriate zoning, services and development potential.

3Original H1 2023 IDA results provided were preliminary, and have now been updated. H2 2023 data also remains preliminary and will be updated if necessary at the stage of next reporting if required.

3.6 Strengthen Collaboration between MNCs and SMEs

Timeline				Ongoing to Q4 2024: Implementation of Global Sourcing Initiative to
				contribute to a 20% uplift in IDA client expenditure in Ireland by Q4
				2024
	Responsibility			IDA Ireland; Enterprise Ireland
Update	Update		IDA Ireland and Enterprise Ireland have developed a new engagement strategy to encourage and enhance global sourcing linkages between their respective clients. Under the umbrella of ‘Export in Ireland’, IDA Ireland will facilitate introductions of up to potentially 80 IDA Ireland Clients / MNCs up until the end of 2024. Tangible activities to achieve this goal include direct Enterprise Ireland client introductions to MNCs, curated MNC supplier events with Enterprise Ireland client participation, networking and sectoral themed networking events. To date, IDA Ireland have introduced Enterprise Ireland executives to fifteen multinational companies based in Ireland. These introductions have included sectors such as; Biopharma; Medtech; Technology Manufacturing and Business Services. The introductions will help Enterprise Ireland investigate and identify supply chain opportunities for their client companies through understanding the individual current and future MNC supply pressure points, together with future MNC growth and development plans. Following this engagement, Enterprise Ireland will identify suitable clients for introduction, that may have the potential for additional supply and service contracts for their clients in the future. The Global Sourcing Initiative will support Enterprise Ireland’s client base in engaging with IDA clients located in Ireland to complement the objective of assisting Enterprise Ireland clients in winning foreign earnings abroad. IDA clients are simultaneously advantaged in exploring international supply chain options, which has taken increasing precedence post-Covid on matters including supply localisation and diversification, digitalisation, and the sustainability agenda.

3.7 Enhance FDI Partnering in Research, Development and Innovation

Timeline				Q4 2024: Deliver 170 additional RD&I investments, and cumulative
				RD&I investment of €3.8 billion, by client companies in the period
				2021-2024
	Responsibility			IDA Ireland
Update	Update		IDA Ireland secured 21 Research, Development & Innovation projects in H2 2023, bringing the total number of approved projects in 2023 to 46. Client companies committed to an R&D spend of €1.4 billion associated with these projects. Against the targets set out, 126 R&D projects have been approved to date. This represents 74% of the targeted 170 projects to be delivered by Q4 2024. The approved projects are of significant scale, with client companies committing to spending €3.7bn on research and innovation. This represents 97% of the targeted €3.8bn investment by Q4 2024.

3.8 Enable Digitalisation of our FDI Base

Timeline				Q4 2024: Engage 400 companies to commence their digitalisation
				journey with awareness and advisory assistance
	Responsibility			IDA Ireland, Digital Manufacturing Ireland
Update	Update		Digital Manufacturing Ireland (DMI) was opened in Q1 2023 and was established to form an industry-led national organisation that enables Irish-based manufacturers to access, adopt and accelerate new digital technologies. Since its inception, DMI staffing count has grown to 37, with a leadership team, subject matter experts and support functions in place. There has been strong industry interest to date, with over 1,350 client visits during 2023, just over half of which were repeat visits from clients looking to participate in the activities of DMI. This has positioned DMI’s client engagement numbers well ahead of their Q4 2024 target of 400 companies engaged to commence their digitalisation journey with awareness and advisory assistance. In May 2023, DMI launched the Visual Cognitive Manufacturing Group, a cross industry collaboration consisting of over 60 organisations to date, designed to establish Ireland as a global centre of excellence in the use of machine vision in manufacturing. The first projects were scoped with clients in Q4 2023 and will commence during 2024. These projects will be structured off client needs and problem statements aligned to the use of machine vision systems and AI in enhancing manufacturing practices. In July 2023, the Human Centric Manufacturing research study was launched in collaboration with the Massachusetts Institute of Technology and the International Academy of Automation Engineers. The study is in partnership with 14 medical device manufacturers and the first report is expected in H1 2024 which will provide unique insights into the human side of adoption of advanced manufacturing technologies at scale.