U.S. Trade Deficit with Ireland Soars to Another Record in 2011

In 2011, the U.S. trade deficit with Ireland soared to $31.6 billion, blowing away last year’s record of $26.6 billion.  The trade deficit with Ireland has grown by 277% since 2001.  Here’s a chart of that growth:

Ireland Trade

By comparison, our trade deficit with Ireland is small potatoes compared to China – about one tenth as large.  However, China is a vastly larger country.  Expressed in per capita terms, our trade deficit with Ireland, at $6,695 per person, the highest in the world, is 30 times worse than our per capita trade deficit with China. 

The point here is not that we need to do something about Ireland, any more than we need to do something about China or any other one nation.  The point is that, although China draws all the fire for our trade deficit and loss of manufacturing jobs, our trade results with China are really no different than our trade results with other densely populated nations – Ireland included.  In nearly every case, our trade deficit with densely populated nations worsened in 2011.  The problem isn’t China, or their low wages or currency manipulation or unfair trade practices.  The problem is U.S. trade policy that attempts to apply free trade in situations where it simply isn’t applicable – where it has absolutely no chance of doing anything other than draining our economy of its jobs and wealth.

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3 Responses to U.S. Trade Deficit with Ireland Soars to Another Record in 2011

  1. rights2012 says:

    the debts figure for Ireland shows how tax havens didn’t help them either. There now talking of national assest selling which won’t help them much with their debts and only put up the price of the peoples fuel bills after its privatised.

    • Pete Murphy says:

      The fact that Ireland is a tax haven plays a large role in the U.S. trade deficit with Ireland. Pharmaceutical companies seem especially fond of locating their manufacturing operations there.

  2. rights2012 says:

    http://en.wikipedia.org/wiki/Tax_havens#Proposed_U.S._legislation
    a solution to the problem
    so would be Companies tax bill being published on line
    ie public transparency accountability.
    Richard Murphy bill:http://www.taxresearch.org.uk/Blog/2009/06/18/country-by-country-reporting-a-new-report/

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