Trade and investment: Strengthening relationships, maximising opportunities

Ibec looks at how Ireland’s 2026 EU Council Presidency comes at a pivotal moment, offering a major leadership opportunity to steer the EU toward a more competitive, resilient, innovative, and outward-looking future by strengthening key systems—from open markets and secure supply chains to digital, energy, skills, and sustainability frameworks—amid persistent geopolitical, economic, and regulatory challenges.

The outlook for international trade has changed radically in a transformed global context.

Heightened geopolitical tensions and escalating conflicts mean more volatility, less integration and more frequent disruptions to global supply chains.

Coupled with this, the EU’s strength in trade has been further challenged by increasing levels of protectionism, including escalating trade disputes and the imposition of tariffs.

For business, this means more uncertainty with higher risks for trade and investment.

Despite this backdrop, a proactive and outward-looking common trade policy and the ability to attract investment remain among Ireland and the EU’s most powerful assets.

Furthering this must be at the core of the agenda of the Irish Presidency to deliver economic prosperity and competitiveness in a world where 85% of economic growth is predicted to take place outside of Europe.

Carefully balancing openness, regulatory predictability and economic security to avoid trade and investment restricting measures is key.

In the context of today’s global geopolitical challenges, a key priority of the Irish Presidency must be to act as a leading voice for an EU that continues to support a rules-based international trading system and maintains close dialogue and cooperation with key trading partners, including in areas such as IP.

Tariff increases undermine predictability and trigger further market and supply chain uncertainties, causing harm to both consumers and businesses.

Despite current challenges, for both the Irish and European business community, the transatlantic relationship remains one of the most important economic partnerships in the world.

The Irish Presidency offers an opportunity to strengthen the EU and US economic relationship to fulfil its potential, while simultaneously ensuring that the EU is agile and adaptable to the changing global trading order.

With greater challenges to long-term stability and predictability, the Irish Presidency must support the strengthening of existing and the delivery of new bilateral partnerships.

Trade agreements can simultaneously enhance trade cooperation with third countries and deliver new market diversification opportunities for business.

First and foremost, this should start in the EU’s neighbourhood.

The delivery of actions agreed at the 2025 EU-UK Summit and the 2026 review of the EU-UK Trade and Cooperation Agreement review offer significant opportunities to advance the EU’s relationship with its third largest trading partner.

Ensuring that the EU fully recognises and supports the realities of the all-island economy, particularly regarding customs and trade policy, is essential. Ireland will also have an important role to play in advancing EU enlargement, including fostering closer economic ties between the EU and accession candidates.

Business supports a merit-based approach rooted in the Copenhagen criteria, recognising both market diversification opportunities and internal reforms enlargement entails.

As the Commission proposes a 2026 Work Programme entitled ‘Europe’s Independence Moment’, the voice of outward-looking, open economies like Ireland have never been more important.

The EU’s growth and prosperity are intrinsically linked to its ability to trade with third countries. Policies like ‘European preference’ run the risk of cutting ourselves off from future levers of growth, without any guarantees of benefits for the European economy.

Of course, Europe must strengthen its industrial base and production capacity to reduce exposure to risks and strengthen economic resilience.

However, this must be done carefully and intelligently.

Key recommendations:

Advance the rules-based trading system including reform at the WTO and address the realities of changing global trade dynamics through strengthened plurilateral and bilateral partnerships.

Strengthen relations with key trading partners such as the US and the UK by delivering agreed commitments, fostering regulatory alignment and enhancing trade and investment opportunities.

Unlock trade and market diversification opportunities to enhance resilience and growth while also supporting EU enlargement as a key driver of economic integration and broader market access.

Ensure that EU legislation acknowledges business needs through effective simplification, safeguards all-island trade and supply chains, without hindering business competitiveness.

Balance economic security with openness to trade and investment by preserving competitive opportunities and avoiding a protectionist policy at EU level.

Champion greater IP harmonisation efforts and avoid further fragmentation of this complex economic area.

Read more from the report:

Single Market and simplification: Turning ambition into action

Enterprise and economy: Create the conditions for competitiveness

Labour market and social policy: Skills, innovation and EU added value

Digital and AI: Simplification, adoption and innovation

Security and Defence: Pillars of a resilient Europe