Interview with Mark Redmond
, Chief Executive at American Chamber of Commerce Ireland

24 Apr Interview with Mark Redmond
, Chief Executive at American Chamber of Commerce Ireland

PRISMA Reports: The American Chamber of Commerce Ireland is a massive supporter of trade and FDI between the two countries – and you’ve done a great job. Currently, Ireland is now the ninth largest trading partner with the US, which is no small feat and certainly amazing from a country of its size.  Can you give us an overview of American Chamber of Commerce Ireland’s operations, and how exactly does the chamber promote investment between the two partners?

Mark Redmond: First of all, the American Chamber of Commerce is actually celebrating our 60th anniversary this year – the organization was founded in 1961, we are a not-for-profit and non-partisan organization. Our role is to represent the US multinational community in Ireland and Irish multinationals who have operations across the United States of America. The U.S. multinational presence in Ireland is extremely large by relevance to Ireland’s size: there are over 800 U.S. multinationals with significant operations in Ireland who directly employ 180,000 people and indirectly also support a further 144,000 jobs. You’ll find that multinational presence in almost every sector: pharmaceuticals; medical technology; semiconductors; global financial services; cyber security data; social media – all the major players have significant operations in Ireland. For example, the world’s top five global software companies have significant operations in Ireland, as do the world’s top 10 pharmaceutical companies. What do all these people do? Well, their impact is global – just to give some examples, during the pandemic, even though Ireland has 0.06% of the world’s population, we were the fifth largest supplier of goods in response to the pandemic: four out of every five medical stents used across the world are created in Ireland. As you rightly say, Sylvia, it’s a two-way relationship, and there are 650 Irish companies that have operations in all 50 states of the United States, who employ in excess of 110,000 people.

PRISMA Reports: Ireland has pulled itself up by its bootstraps and is now a huge financial power in the EU and around the world. Can you give us a brief history of Ireland’s economic rise, its highlights and specific sectorial strengths?

Mark Redmond: Ireland as an independent country is now coming up to its 100th anniversary. The first four decades of Ireland’s independence were not a happy time for the country, because Ireland pursued an isolationist and protectionist economic policy and the country was very agriculturally dependent – that, quite frankly, became unsustainable. So in the early 1960s, Ireland changed course and decided it was going to abandon protectionism, abandon isolationism and effectively open up for business with the global community. A significant landmark on that journey was Ireland joining what is now the European Union – then called the E.E.C. – in 1972.That was a very important development and, of course, ironically, we joined at the same time as Great Britain. It’s a terrible shame that the United Kingdom has departed, but this does mean Ireland is the only English speaking common law gateway to the European Union – for example, for U.S. investment. Prior to that, in the 1960s, Ireland moved to a free education system for its people. That was also a very important development and it led to a growth in the university sector in Ireland – Ireland now has, proportionately, the highest population in the European Union of people with a university qualification; education is a very important part of the Irish journey. Furthermore, while Ireland has it has more to do in this space as far as AMCHAM is concerned, we’ve done a lot of really good work in relation to innovation and research, and there’s a very strong research community in Ireland as well. Lastly, an extremely important moment was when we had the Good Friday Peace Agreement, or the Belfast Peace Agreement that brought peace to Northern Ireland, which a separate political jurisdiction that is part of the United Kingdom. The fact that peace was agreed was also an important development for the rest of the island of Ireland as well.

PRISMA Reports: The recent Covid pandemic has sent industry rolling – some sectors more than other. How has the pandemic affected industry relations between the two parties, and what kind of opportunities has it opened up?

Mark Redmond: Like every other country in the world, the pandemic has been very tough for Ireland. It’s been particularly tough for the domestic business community, especially those in hospitality, hotel, entertainment, sport, etc. However, like most other countries, the Irish Government has put in place support mechanisms and funding supports for those businesses and for their employees to try and preserve as much as possible, for when we emerge from this pandemic. The businesses did not go bankrupt or have to go out of business; they were kept on “life support system”. Of course, this happened at the same time as Brexit, which has been particularly challenging again for the Irish domestic business base, particularly those in agriculture, food and beverages – because the United Kingdom was a very important market for Irish food and Irish beverage produce. On the other hand, in terms of multinational investment, particularly in key areas like pharmaceuticals, there actually has been a continuance of operations throughout the pandemic.  Very importantly, critical global supply chains in which Irish operations play an important part such as pharmaceuticals, medical technology and semiconductors have maintained production, and in some areas have increased production – for example, in key med-tech areas like ventilation production. That’s been a very important aspect of the multinational experience of pandemics, and has had a beneficial impact to the Irish economy in its full sense.

PRISMA Reports: Ireland has done an amazing job attracting US multinational’s offices to its shores. What is our assessment of the overall state of Ireland – US relations? What makes Ireland a great place for American companies to come and do business, and how has the Chamber been part of this success?

Mark Redmond: The relationship is in a very good place- for example, we recently surveyed our members and we asked them two questions, which gave two very interesting answers: 56% of the leadership of US multinationals in Ireland said Ireland is a better place to invest in today than it was five years ago – that’s pretty remarkable. Ireland is seen as a trusted business partner of the United States, and I think the performance of multi-nationals during the pandemic is a good reason for this, because we seemed to be so resilient. In a broader sense, Ireland is the only country in the world guaranteed an annual bilateral meeting with the President of the United States. They happen every year around St Patrick’s week, and these are meetings of substance – this year, it happened virtually, but every other year it happens in person. On the same day that that meeting happens in the Oval office, the Prime Minister also separately meets with the Speaker of the House and with the Vice President – so in one day, our Prime Minister has separate bilateral meetings with the three most powerful political leaders in the United States. That’s a kind of remarkable signal of the place Ireland holds in the corridors of power in the US – and of course, 30 million US citizens claim Irish heritage. The relationship between Ireland and the U.S. is very deep, strong and encompasses almost every aspect of life and business that you care to mention.

PRISMA Reports: What do you envision for the U.S. and Ireland’s relations for the future?

Mark Redmon: We believe Ireland has a potential role as a bridge between the United States and the European Union, because we are the English-speaking common law gateway, and because we’re very closely aligned with how the U.S. likes to do business. What we often hear, in fact, is that Ireland can explain the United States to the European Union – and explain the European Union to the United States. So we do, we think, have a great potential to serve a role as a bridge between those two trading blocks.

PRISMA Reports: Given recent trade tariffs imposed by Trump and Biden’s plan to tax American multinationals, how important is America’s legislation in bridging the divide between the two nations, and what kind of challenges are you currently facing?

Mark Redmond: What’s very significant about the Biden administration’s tax programme is that they’re closely aligning themselves with the OECD, which is a big shift and a welcome one: Ireland was concerned that there would be a unilateral approach to corporate tax reform in different countries and in different trading blocks, and at one stage that looked like a real possibility. That would have been really unhelpful for global trade, because it would have increased uncertainty for business.Now, we’re seeing the United States get supportive and behind the OECD project, which means there will be a global, unified, coherent approach to reform of how multinationals are taxed. Ireland sees that as a positive development, and has been a very active participant at the OECD table in this process. So, I think that’s a positive development – but I think we also should emphasize that while corporation tax is an important factor, it’s no longer the only factor, or the most important factor in terms of where foreign direct investment will invest in the future. We believe, actually, the key factor is going to be where people want to live – quality of life is going to be a really important consideration, and that brings into question things like inclusion, sustainability and approach to the climate crisis; it brings into question public infrastructure, travel, transport infrastructure. The positive here is that in December of 2020, in the latest report on “Quality of Life” index, the UN rated Ireland second in the world.

PRISMA Reports: Sustainability and innovation, driven by new technologies, are elements that have been embraced by Ireland’s economy, stimulated entrepreneurs to seek new opportunities and powered new growth areas in well-established industries. How would you say innovation and forward thinking attitudes are rooted in Ireland’s past, but also key drivers in today’s economy?

Mark Redmond: I think innovation is at the heart of any successful business – quite frankly, if you don’t innovate, you become obsolete. We see transformations happening all the time in the activity of multinationals here in Ireland – one of our leaders recently told us that when they look at their team, hardly any of their team today are doing what they did five years ago – so, in other words, what they’re working on and how they’re working on their projects are completely different than they were five years ago. To give another example: incredibly, semiconductor technology created in Ireland can now be found on Mars, because it’s supporting the NASA project there. So, what we’re seeing in Ireland is quite frankly world-class innovation across all the key sectors. But it’s critically important that this continues; that’s why AMCHAM is so ambitious for a strategic investment in education and in research. As I said before, it is a two-way street – Irish company Glanbia is the most innovative nutrition company in the United States of America – so Ireland is a big investor in research, development and innovation in the United States.

PRISMA Reports: Digitization is causing a revolution in every aspect of business – from the sale of boots to the creation of medical miracles. How is digitization changing Ireland’s world of business, what strengths does the nation have in this regard, and how are the two countries working together to foster this new digital world?

Mark Redmond: I think the big issue there is trying to ensure that there is a robust mechanism – for example for trans-Atlantic data transfer. As you know, this has been a hot topic between the European Union and the United States – of course, Ireland is a very strategic partner in that debate. That’s one really important issue; the second big area of opportunity and importance is cybersecurity. Ireland is increasingly becoming a global centre of excellence in relation to cyber security, so that’s a huge area; the third area that’s growing increasingly important is the whole question of convergence between the tech sector and the life sciences sector – healthcare as a digital service. Again, we think that is a huge area of opportunity in Ireland because we have such a proximity and cluster of excellence in both tech and life sciences here.

PRISMA Reports: What Irish business sectors are leading the charge in digitization?

Mark Redmond: One sector that’s really enabling digital transformation is the semiconductor industry. Ireland has some of the world’s leaders in the semiconductor industry – for example, Analog Devices, and of course, Intel. Intel have made a very significant commitment to Europe in relation to semiconductor production, anchored, of course, partly in Ireland – but that’s a very important component of digitalization: advances in semiconductor technology.

PRISMA Report: Brexit has caused strain between EU countries and the UK. In Ireland, exports to the UK fell a mighty 47% in the first month of the company leaving the EU and have been lagging since. How have loosening ties with the UK strengthened Ireland’s reliance and partnerships with the US?

Mark Redmond: Ireland will continue to have really close relationships with the United Kingdom. The relationship between Ireland and the United Kingdom is, historically, is a chequered one, but it’s also actually a very close one. Why? Well, first of all, we share an island with part of the United Kingdom. We have a unique set of relationships between the Republic of Ireland and United Kingdom – one of them is called a “common travel area”. Secondly, an awful lot of people who live in the United Kingdom have Irish heritage, so the relationship is actually a lot warmer than people might think. There’s definitely going to be a difference now, and it’s a shame that the United Kingdom has left European Union – but we don’t believe this is going to lead to a cooling off of the relationships with United Kingdom. At the end of the day, we share an island with them, and there are people on this island who have allegiance to both the United Kingdom and the Republic of Ireland – so we need to collaborate in that space.

PRISMA Reports: Let’s talk a bit about Iceland’s comparative and competitive advantages and its success in diversifying its economy creating attractive opportunities for foreign investors. How would you rate Iceland’s position as a safe and attractive destination for foreign investors?

Mark Redmond: I think the answer to that question is the evidence: over 800 US companies have put their faith in Ireland and continue to put their faith Ireland. This isn’t an overnight success story – US companies have been coming to Ireland for six decades; when they arrive, they like what they see, and they expand and expand and expand. To go back to my Intel example: Intel began here just over 30 years ago, with a very small operation. When their current phase is complete, they will have invested $25 billion in capital is here. That’s just one example, but the point I’m trying to make here is: in answer to the question of how Ireland regarded as a good location for foreign direct investment – the proof of the pudding is the companies who are finding great success here.

PRISMA Reports: Do you have a final message to our readers?

Mark Redmond: My final message is that I think there’s huge opportunity, as we emerge out of this pandemic, for business to play its part to help in economic recovery and social recovery. The best way we can do that is by being collaborative and working as a global community of business and stakeholders, and not becoming isolationist. Ireland story teaches us that isolationism does not lead to a good result, whereas collaboration and globalization – with appropriate guardrails – does.