asked the Minister for Industry and Commerce the increase/decrease in trade between (a) Ireland and the United States from 1987 to date and (b) between Ireland and South America from 1987 to date; if he will give details of the scope there exists for improvements in these areas; and if he will make a statement on the matter.
Written Answers. - Trade with USA and South America.
42.
I propose to circulate in the Official Report a tabular statement giving details of our total trade with the US and with South America as provided by the Central Statistics Office. This statement also gives a breakdown of trade as between imports and exports.
Total trade between Ireland and the US increased by 9.4 per cent in 1987, 7.7 per cent in 1988 and by 24 per cent in the first ten months of 1989. Exports to the United States improved by 1.8 per cent in 1987, following very low growth in the previous year, and by 13.9 per cent in 1988. Exports for the first ten months of 1989 are showing an increase of almost 20.5 per cent on the corresponding figure for 1988. CTT advise me that they expect a similar rate of export growth for 1990.
Imports from the US have increased by 13.9 per cent in 1987, 4.37 per cent in 1988 and by 26 per cent in the first ten months of 1989. Ireland has a large trade imbalance with the US, primarily due to importation of raw materials, components and subassemblies by US subsidiaries in Ireland. This imbalance grew by 32 per cent in 1987, decreased by 7.2 per cent in 1988 and grew by 33.9 per cent in the first ten months of 1989.
While understanding the reasons for the high imports, there is in my view considerable scope to reduce our deficit with the USA by increased and sustained attention to that market. For example, I have noted the considerable success of CTT's strategy for the development of the UK market in recent years and I am confident that a similar effort will succeed in relation to the USA. I have, accordingly, asked CTT, in consultation with my Department, to develop a detailed medium term, three-five years, strategy for the US market covering sectors, companies, regions and promotional events. I intend that this intensified US strategy will commence in 1990.
Total trade between Ireland and South America decreased by 3.6 per cent in 1987, increased by 9.1 per cent in 1988 and decreased by 0.7 per cent in the first ten months of 1989. Exports to South America improved by 6.8 per cent in 1987, and decreased by 15.4 per cent in 1988. Exports for the first ten months of 1989 are showing a decrease of almost 16.9 per cent on the corresponding figure for 1988. Imports from South America decreased by 18.2 per cent in 1987, increased by 45.4 per cent in 1988 and by 12.2 per cent in the first ten months of 1989.
Ireland had a trade surplus with South America in 1986. This surplus grew by 201 per cent in 1987. The trade balance went into deficit in 1988, a change of 163 per cent. This deficit increased by 141 per cent in the first ten months of 1989.
The political instability and economic difficulties experienced by many South American countries are well documented. These difficulties together with the distance to the marketplace have naturally tended to depress trade with South America generally. I do not expect that South America will be a significant focus for our trade efforts in the coming year. On the other hand, as some South American countries have immense economic potential, I will ensure that developments there are kept constantly under review.
Total Trade for South America*
|
£000 |
|
|
1987 |
132,796 |
|
1988 |
145,434 |
|
Jan.-Oct. 1989 (Prov) |
129,420 |
Imports/Exports for South America*
|
Imports |
Exports |
Balance |
|
|
£000 |
£000 |
£000 |
|
|
1987 |
55,184 |
77,612 |
+22,428 |
|
1988 |
79,791 |
65,643 |
-14,148 |
|
Jan.-Oct. 1989 (Prov) |
80,441 |
48,979 |
-31,462 |
Total Trade with the USA
|
1987 |
2,389,220,000 |
|
1988 |
2,672,545,000 |
|
Jan.-Oct. 1989 (Prov) |
2,612,747,000 |
Imports/Exports with USA
|
Year |
Imports (£) |
Exports (£) |
Balance (£) |
|
1987 |
1,555,413,943 |
833,805,689 |
-722,608,254 |
|
1988 |
1,623,017,000 |
949,518,000 |
-673,509,000 |
|
Jan.-Oct. 1989 |
1,672,171,000 |
940,576,000 |
-731,595,000 |
*For the purposes of this Question, South America is taken to mean Colombia, Venezuela, Guyana, Surinam, French Guiana, Ecuador, Peru, Brazil, Chile, Bolivia, Paraguay and Argentina.