Revisiting the UK and Ireland’s Transatlantic Economic Relationship with the United States in the 21st Century : Beyond Sentimental Rhetoric

This book revisits the economic relationship that ties the UK and Ireland to the United States in the aftermath of the greatest economic crisis of the past fifty years. When considering recent developments to these economic links, it appears that oppositional forces are at work. On one hand, globalization and the rise of new economic powers may undermine the ties. Besides, Ireland’s and the UK’s European Union membership could also loosen their economic ties with the US. Conversely, the future Transatlantic Trade and Investment Partnership agreement may well strengthen trade and investment links between the US and Europe. Are the economic bonds between the US, the UK and Ireland waning, as some pundits purport? Or are those claims overstated? Could their economic relationship simply be going through a process of change? Although there may not be a single and straightforward answer to these questions, the authors seek to address these issues and provide insight into the changing dynamics of this historic economic relationship. Foreword 5 Ireland’s Coming of Age 5 Bibliography 8 Contents 9 Notes on Contributors 12 List of Abbreviations 15 List of Figures 18 List of Tables 19 Part I: The UK’s and Ireland’s Economic Relationship with the United States: A ‘Living Entity’ 20 1: Introduction 21 1 Structure of the Book and Chapter Synopsis 33 Bibliography 36 2: Turning the Telescope Around. The Anglo-American ‘Special’ Economic Relationship in the ‘Post-American’ World 41 1 Introduction 41 2 The Anglo-American Relationship in the Twenty-First Century World Economy 44 In a Rapidly Changing Global Environment Asymmetry Characterizes the Two Economies 44 Although Regional Integration Has Been Pulling the Two Economies Apart, they Remain Preferential Investment Partners 45 The New York–London Financial Nexus, a Salient Feature of the Anglo-American Relationship and a Key Actor in Global Finance 52 3 The Institutional Foundations of the Special Economic Relationship 55 Does Culture Matter? 57 A Shared ‘Anglo-Saxon’ Economic Model 60 The Centrality of Finance 65 4 Conclusion 67 Bibliography 68 3: The Irish−US Economic Relations: End of an Era or a Promising Future? 74 1 Introduction 74 2 US Investment in Ireland: A Pillar of Irish Growth from 1958 to 2007 76 3 The Financial Crisis of 2007 Surprisingly Reinforced US−Irish Linkages 79 4 How Sustainable is the Special Relationship Between the USA and Ireland? 81 Free-Trade Agreements: Facilitating Trade, but also FDI? 82 Ireland’s Tax Regime: A Disputed Advantage 85 5 Conclusion 89 Bibliography 89 4: US Investment in Northern Ireland: Strategies, Incentives and Perspectives 92 1 Introduction 92 2 US Investment in Northern Ireland: An Enduring Tradition 93 3 US Investment in Northern Ireland: Investing in More than Business? 97 4 Perspectives and Challenges for US Investment in Northern Ireland 102 5 Conclusion 105 Bibliography 105 Part II: Transatlantic Cross-Influences, Cooperation and Competition 109 5: The Role of Finance in US–UK Relations Today and Its Global Influence 110 1 Introduction 110 2 The Historical Relationship Based on Competition and Cooperation 111 3 US and UK Finance in the Present Era of Global Financial Markets 118 4 The 2007–2008 Financial Crisis and Beyond 123 5 Continued Competition and Cooperation in Dominating Global Finance 129 6 Conclusion 132 Bibliography 133 6: Albion’s Global Reach: British Influences on US and EU Financial Regulation in the 1980s and the Era of the ‘Great Recession’ 135 1 Introduction 135 2 Gilts, Bonds, Bunds, and Booms: How the UK’s Regulatory Reform of the 1980s Stole the Global Spotlight in Financial Innovation 137 3 Re-regulation and Global Harmonization: Addressing Universal Banking Issues and the Push for Prudential Oversight 143 4 Conclusion 151 Bibliography 151 7: British and American Monetary Policies Convergence: Structural Coincidence or Transatlantic Mutual Influence? 154 1 Introduction 154 2 Historical Overview of the Evolution of the Monetary Policies of the UK and the USA 157 Notoriously Specific Strategies Before the 2008 Crisis 157 Monetary Policy Convergence After the 2008 Crisis 159 3 Structural Evolution Leading to Convergence 161 Higher Uniformity of Economic Situations 161 Global Monetary Policy Science 162 4 From Commitment to Cooperation to Mere Synchronization 164 Monetary Policy Cooperation and Coordination 165 Discreet Concerted Actions or Mere Synchronisation? 168 5 Conclusion 172 Bibliography 173 Part III: Perspectives and Challenges 177 8: The USA and the UK (1970–2010): Ordinary Trading Partners? 178 1 Introduction 178 2 Hypotheses, Data and Methodology 180 Questioning the Commercial Link Between the USA and the UK 181 Data 182 Methodology 183 3 The Main Results 185 4 Interpretation of Results and Discussion 188 5 Conclusion 191 Bibliography 193 9: Transatlantic Services Trade and Investment: Dynamics of and Challenges to the ‘Special Relationship’ in the Twenty-First Century 195 1 Introduction 195 2 Conceptual and Measurement Difficulties 197 3 Dynamics of International Trade between the USA and the UK 199 4 The Significance of Foreign Direct Investment 204 5 Challenges to Future Development of the US–UK Transatlantic Partnership in Services Trade and Investment 206 6 Going Beyond the ‘Special Relationship’ in Trade and Investment 210 7 Conclusion 212 Bibliography 213 10: Irish-Owned Exporting Companies: Looking East, Looking South but Still Going West 215 1 Introduction 215 2 An Enhanced Role for Irish-Owned Firms 218 3 Promising Opportunities in Fast-Growing Economies 220 4 The Role of the Irish Authorities: Stepping Up Economic Diplomacy Efforts 222 5 Exporting to Emerging Economies: Too Big a Leap for Irish-Owned Companies? 225 6 Conclusion 229 Bibliography 230 11: Conclusion 237 Bibliography 239 Index 240 Front Matter....Pages i-xxiii Front Matter....Pages 1-1 Introduction....Pages 3-22 Turning the Telescope Around. The Anglo-American ‘Special’ Economic Relationship in the ‘Post-American’ World....Pages 23-55 The Irish−US Economic Relations: End of an Era or a Promising Future?....Pages 57-74 US Investment in Northern Ireland: Strategies, Incentives and Perspectives....Pages 75-91 Front Matter....Pages 93-93 The Role of Finance in US–UK Relations Today and Its Global Influence....Pages 95-119 Albion’s Global Reach: British Influences on US and EU Financial Regulation in the 1980s and the Era of the ‘Great Recession’....Pages 121-139 British and American Monetary Policies Convergence: Structural Coincidence or Transatlantic Mutual Influence?....Pages 141-163 Front Matter....Pages 165-165 The USA and the UK (1970–2010): Ordinary Trading Partners?....Pages 167-183 Transatlantic Services Trade and Investment: Dynamics of and Challenges to the ‘Special Relationship’ in the Twenty-First Century....Pages 185-204 Irish-Owned Exporting Companies: Looking East, Looking South but Still Going West....Pages 205-226 Conclusion....Pages 227-229 Back Matter....Pages 231-247 Turning The Telescope Around : The Anglo-american Special Economic Relationship In The Post-american World / Martine Azuelos -- The Irish-us Economic Relations : End Of An Era Or A Promising Future? / Vanessa Boullet -- Us Investment In Northern Ireland : Strategies, Incentives And Perspectives / Valérie Peyronel -- The Role Of Finance In Us-uk Relations Today And Its Global Influence / Nicholas Sowels -- Albion's Global Reach : British Influences On Us And Eu Financial Regulation In The 1980s And The Era Of The Great Recession / Kester Keating And Gabriel Suprise -- British And American Monetary Policies Convergence : Structural Coincidence Or Transatlantic Mutual Influence? / Nathalie Champroux -- The Usa And The Uk (1970-2010) : Ordinary Trading Partners? / Laurent Beauguitte And Yann Richard -- Transatlantic Services Trade And Investment : Dynamics Of And Challenges To The Special Relationship In The Twenty-first Century / Louise Dalingwater -- Irish-owned Exporting Companies : Looking East, Looking South But Still Going West / Anne Groutel. Anne Groutel, Marie-christine Pauwels, Valérie Peyronel, Editors. Includes Bibliographical References And Index.