How SMEs Can Grow Abroad

Irish businesses often focus on the local market and overlook the benefits of international trade. Selling and buying worldwide lets businesses take advantage of lower raw material costs and access a steady stream of customers, unaffected by local seasonal buying habits.

SMEs in Ireland, which often face a small home market dominated by a handful of major retailers with limited shelf space, are in a good position to capitalise on these trends. By opening to international export, they secure their place in a global economy, access varied supply and demand chains, and set themselves up for lasting success. This guide covers the wider forces that make international trade attractive, from trade agreements to tariffs, and how to navigate them.

What is international trade?

International trade, also known as foreign trade or global trade, is the exchange of goods and services across borders.1 When an Irish business sells its products overseas, that's an export. When it buys materials, components, or finished goods from another country, that's an import.

The benefits of foreign trade extend well beyond the businesses directly involved, rippling out to suppliers, employees, and consumers. A country, or a business, gains by specialising in what it produces most efficiently, then trading for everything else. Ireland, for example, has built a strong position in pharmaceuticals and digital services, with major sites for Pfizer and Eli Lilly hosted in Cork2 and Dublin as a base of choice for global technology names like Google, Meta, and Apple.3

How Ireland benefits from international trade

Ireland is a small country producing goods at a scale that outstrips local demand. Hence, Ireland doesn’t just benefit from international trade; it needs overseas markets to be profitable. Irish exports outside the EU alone were worth €413.1 billion in 2023, supporting more than 722,000 jobs in Ireland, roughly 30% of all jobs in the country.4

The benefits of international trade for Ireland also extend beyond exports and jobs. Trade brings foreign direct investment (FDI) into the country, as multinational companies set up Irish operations partly to access EU markets, bringing training, technical knowledge, and new technology with them. This can be seen in Ireland’s manufacturing, agrifood and professional services, from the pharma plants around Cork to dairy co-ops exporting Irish butter and cheese across Europe. Local consumers benefit too as global supply chains let them access everyday products that aren't manufactured domestically.

Global trade growth is expected to slow in the near term, from 4.6% in 2025 to 1.9% in 2026 and 2.6% in 2027, according to the WTO.5 Irish businesses would do well to make a move into global markets, as the country’s fortunes are closely tied to its international trade performance.

How EU trade agreements open new markets for Irish businesses

As a member of the EU single market and customs union, Irish SMEs can sell into the other 26 EU countries without tariffs or border customs clearance. Ireland is also the EU's largest majority English-speaking member state, with established trade and investment links across Europe and North America. 

Trade with countries outside the EU works differently. The European Commission negotiates trade agreements on behalf of all EU members, then applies them across the bloc. For Irish businesses, importing from or exporting to a country with a trade agreement typically means:

• Reduced or removed tariffs on goods sold into partner countries

• Simpler customs procedures for moving goods across borders

• Easier access to public procurement and services markets that would otherwise be closed or restrictive

Two examples of trade agreements in force are:

• The Economic Partnership Agreement (EPA) between the EU and Japan: Fully in force since 1 February 2019, eliminating 99% of EU tariff lines and 97% of Japan's tariff lines at entry into force, and opening up services markets including financial services and telecommunications.7

• The Comprehensive Economic and Trade Agreement (CETA) with Canada: Applied provisionally since 21 September 2017, eliminating duties on 98% of tariff lines between the EU and Canada, rising to 99% as remaining phase-outs complete.8

For Irish businesses looking for opportunities in overseas markets, tools like the DHL Trade Growth Atlas can help identify areas where trade is growing for a first-mover advantage.

The benefits of global trade for Irish businesses

Irish businesses, particularly SMEs, can capitalise on the benefits of foreign trade in several ways.

• Access to larger markets and new customers: When a business exports, it is no longer limited to Ireland as its customer base. An Irish SME selling into the EU, the UK, or further afield can reach millions of new customers and find new areas to expand into.

• Lower costs through overseas sourcing: Some products and raw materials simply aren’t available in Ireland, or the cost to produce them would be prohibitively high. An Irish craft brewery importing specialist hop varieties from the US Pacific Northwest gets access to ingredients grown far from home, often at a better price than trying to source a substitute locally.

• Economies of scale: As a business sells into more markets, production volumes typically rise, so each unit costs less to produce. SMEs can take advantage of this to scale up production and pass the savings on to their consumers. 

• A wider range of products through importing: Importing lets Irish businesses stock products, ingredients, or components not available domestically, such as specialised machinery parts or even foods like olive oil, coffee, or tropical fruits.

• Improved competitiveness and innovation: Businesses trading abroad are regularly measured against international competitors, pushing them toward sharper pricing, better products, and more research and innovation to keep up with competitors at home and abroad.

• Longer sales seasons and steadier demand: Selling into several countries, particularly across different hemispheres or climates, smooths out the peaks and troughs of seasonal demand. Ireland has nothing like China's 11.11 Singles' Day or 9.9 shopping festival, so an Irish supplier selling into those markets can pick up overflow demand exactly when local manufacturers there are stretched thin.

The disadvantages of international trade and common barriers

Trading internationally brings real advantages, but it also exposes a business to risks. Irish businesses, especially SMEs, weighing up exporting or importing should factor in the following:

• Competition from cheaper imports: Trade works both ways: an Irish producer who only ever sold at home can find itself undercut once foreign competitors with lower production costs start selling into the same market.

• Reliance on overseas supply chains: If you import all your raw materials, your business is in trouble the moment your supplier is in trouble. Open economies like Ireland are more exposed to such shocks.

• Tariffs, trade tensions and protectionism: Trade relations between major economies can shift quickly. Protectionism, the opposite of free trade, uses tools like tariffs or import quotas to shield a country's own producers from foreign competition, and can raise costs for Irish businesses trading with or through that market.

• Customs procedures and paperwork: Every shipment moving outside the EU needs the correct documentation, and trading with non-EU markets usually means paying import duties and Value Added Tax (VAT) on top of the product's cost.

• Currency fluctuation: Selling or buying in a foreign currency means costs and margins can shift with exchange rates, sometimes eating into profit on deals agreed weeks or months earlier.

• Longer, less predictable delivery times and local rules: Shipments outside the EU typically take longer and are more vulnerable to delay, and products may need to meet different regulations or standards in each market they're sold into.

The good news is that none of these disadvantages are insurmountable. The next section looks at how Irish businesses can manage them.

How Irish businesses can overcome trade barriers

Irish businesses can overcome trade barriers by following these five steps: 

Research target markets first

Every country has its own set of rules, before entering a new market, check its duty rates, product standards, and any licences or certifications required so you can avoid your shipment being stuck at customs.

Classify goods correctly

Every product shipped internationally needs a Harmonised System (HS) code, the standard classification customs authorities worldwide use to determine duties. Getting the HS code wrong is one of the most common causes of customs delays and unexpected charges.

Understand Incoterms

Incoterms (International Commercial Terms) define who's responsible for costs, risk, and insurance at each stage of a shipment. Establishing terms like this with a buyer or supplier beforehand avoids disputes over who pays what, and when.

Prepare accurate documentation

Commercial invoices, packing lists, and customs declarations need to be accurate and complete. Even small errors, such as an incorrect value or a missing signature, can hold up a shipment at the border.

Work with an experienced shipping partner

Managing customs clearance and international delivery alone is time-consuming for a growing business. DHL Express supports Irish businesses with international express delivery, customs expertise, and a network spanning more than 220 countries and territories, taking much of the complexity of international shipping off a business's hands.

Grow your Irish business through international trade

The benefits of international trade for Irish businesses are substantial: new customers, lower input costs, and a revenue base spread across several economies rather than one. For those ready to grow beyond the domestic market, getting the basics right can mean the difference between a smooth shipment and a costly delay.

Ready to start selling beyond Ireland? Open a DHL Express business account or speak with a DHL Express specialist to find out how international shipping can work for your business.