Trade Agreement and Tax Incentives: The Irish Experience

Haughton, Jonathan
Sep 2002
Trade liberalization played an important role in the transformation of the Irish economy, starting in the early 1960s. Tax relief and industrial subsidies were also significant. This document explains why the Irish case is relevant for Latin America; summarize the main explanations for Ireland's recent economic success; provide a chronology of Irish trade policy; explain how the loss of tariff revenue was handled; outline the subsidies and tax measures used to encourage investment, particularly from overseas; and discuss the fiscal implications of this industrial policy and the changes in taxation that have been made over time in the search for an efficient and high-yield tax system.