TIL:

Besides, some of our reported deficit in goods is probably fictitious. According to the official numbers Ireland is responsible for 1/3 of the EU’s trade surplus with America. That’s because according to these numbers Ireland sells 6 times as much to the US as it buys. But this is almost certainly a figment of accounting trickery designed to avoid taxes.

Here’s how it works: an Irish subsidiary of a multinational company that manufactures, say, pharmaceuticals sells the drugs at inflated prices to the US subsidiary that markets the drugs here. That reduces reported profits and hence taxes in America, while creating big but basically imaginary profits in Ireland, where corporate taxes are much lower.