The American Chamber of Commerce has warned that industrial disruption following Budget cuts would damage Ireland's international reputation.
The organisation, which represents companies employing 100,000 people in Ireland, said despite significant price drops, costs and wages remain too high in this country.
The American Chamber of Commerce states that energy costs here are 35% more expensive than average prices among countries using the euro. Wages are too high and broadband lags behind other countries.
The Chamber is also worried about maths and science in schools. Tuition hours on those subjects are the lowest among OECD countries.
The newly appointed president of the American Chamber of Commerce, Lionel Alexander, vice president and managing director of Hewlett Packard (Manufacturing) also said the Government must keep the 12.5% corporation tax rate.
'Being a competitive tax jurisdiction has helped to mitigate the fact that Ireland has been uncompetitive from a cost perspective,' he stated.
'However, we cannot use our lower corporate tax as a silver bullet in relation to higher costs and we must address our overall cost competitiveness,' he added.
Despite the global downturn, US multinationals invested €350m in Ireland last year.
