For several decades after the end of the Civil War, Dundalk continued to function as a market town, a regional centre, and a centre of administration and manufacturing. Its position close to the border gave it considerable significance during the "Troubles" of Northern Ireland. Many people were sympathetic to the cause of the Provisional Irish Republican Army and Sinn Féin. It was in this period that Dundalk earned the nickname 'El Paso', after the Texan border town of the same name on the border with Mexico.
Dundalk suffered economically when Irish membership of the European Economic Community in the 1970s exposed local manufacturers to foreign competition
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