International Trade.

Dáil Éireann Debate, Wednesday - 15 November 2006

Wednesday, 15 November 2006

Questions (152, 153)

Bernard J. Durkan

Question:

215 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the ten countries from whence most Irish imports have come in each of the past five years; the extent to which this trade has increased or decreased in that period; and if he will make a statement on the matter. [38214/06]

Written answers

Minister of State at the Department of Enterprise, Trade and Employment (Mr. M. Ahern)

The table provides details of the ten countries from whence most Irish imports have come in each of the past five years (i.e. between the years 2001 and 2005.) From the table, it can be seen that during the period 2001-2005, with the exception of Singapore which has dropped out of the list and the significant rise of China, the list of the top ten import markets has largely remained the same.

This table provides details of the total value of imports from the 10 main import markets. From this table, it can be seen that, the total value of imports from these 10 countries is essentially at the same level in 2005 as 2001. However, when one considers the effect of the time-value of money in the interim, the value of imports coming from the 10 main import markets has in fact fallen.

One significant factor in this development is that the total value of imports from Great Britain fell from €19 billion in 2001 to €13 billion in 2003, and has now risen again to €16 billion in 2005. Apart from the gradual shift away from over-reliance on the UK as our main trading partner (in 1960 75% of Irish exports were destined for the UK, now that figure is at 18%), the dramatic reduction in imports from and exports to Great Britain may have been influenced by what is referred to as a VAT Carousel Fraud, which resulted in export figures being significantly inflated. (This did not result in significant loss of VAT to the Irish Exchequer, but resulted in VAT evasion abroad, particularly in the UK).

Elsewhere, import values from our other main import markets, USA, Germany and France remained largely the same. The value of imports from Northern Ireland remained consistent at just over €1 billion per annum during this period. It is notable that the value of imports from China increased significantly during this period, from just under €1 billion in 2001 to €3.7 billion in 2005. However, there has been a corresponding increase in the value of Irish exports to China during this period also.

Ten Main Import Markets 2001-2005

No.	2005	2004	2003	2002	2001
1.	Great Britain	Great Britain	Great Britain	Great Britain	Great Britain
2.	USA	USA	USA	USA	USA
3.	Germany	Germany	Germany	Germany	Germany
4.	China	China	Japan	France	France
5.	Netherlands	France	China	Japan	Japan
6.	Japan	Japan	France	Netherlands	Netherlands
7.	France	Netherlands	Netherlands	China	Singapore
8.	Norway	Nthn. Ireland	Italy	Italy	Nthn. Ireland
9.	Italy	Italy	Singapore	Nthn. Ireland	Italy
10.	Nthn. Ireland	South Korea	Nthn. Ireland	Taiwan	China

Total value of imports from the ten main import markets

2005	2004	2003	2002	2001
€42.2 billion	€37 billion	€35.1 billion	€42.3 billion	€43.5 billion

Bernard J. Durkan

Question:

216 Mr. Durkan asked the Minister for Enterprise, Trade and Employment the ten most reliable markets for Irish exports in the past five years; the extent to which these have improved or otherwise in that period; and if he will make a statement on the matter. [38215/06]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. M. Ahern)

The table provides details of the 10 main export markets for each of the past five years (i.e. between the years 2001 and 2005.) From the table, it can be seen that the 10 countries listed have consistently been our most reliable markets for exports over the past five years. Although there has been some slight shifting in the ranking order, the 10 largest export markets have remained the same.

Of particular note is the fact that since 2003, the USA has replaced Great Britain as our largest export market. This is due in part to the strategy of reducing over-reliance on the UK market for Irish exports in favour of diversification to other markets such as the EU, USA and global markets. (in 1960 75% of Irish exports were destined for the UK, now that figure is at 18%). However, the reduction in exports to Great Britain may also have been influenced by what is referred to as a VAT Carousel Fraud, which resulted in export figures being significantly inflated. (This did not result in significant loss of VAT to the Irish Exchequer, but resulted in VAT evasion abroad, particularly in the UK).

The trend in recent years has been for Irish exports to increase incrementally, year on year. Figures released by the Central Statistics Office, recently, show that in the first seven months of this year exports increased by 3% relative to the same period last year. CSO figures for year end 2005 showed that exports had increased by 5% over 2004, while the figures for year end 2004 showed an increase of 3% relative to 2003. The evidence shows that Irish exporters are continuing to perform well in a difficult trading environment caused by the global economic slowdown and the recent hike in oil prices. I have no doubt that, when a global recovery takes place and oil prices fall back to their pre-crisis levels, Irish exporters will be well placed to take full advantage of the improved economic circumstances.

Ten Main Export Markets 2001-2005

No.	2005	2004	2003	2002	2001
1.	USA	USA	USA	Great Britain	Great Britain
2.	Great Britain	Great Britain	Great Britain	USA	USA
3.	Belgium	Belgium	Belgium	Belgium	Germany
4.	Germany	Germany	Germany	Germany	France
5.	France	France	France	France	Belgium
6.	Netherlands	Netherlands	Netherlands	Italy	Netherlands
7.	Italy	Italy	Italy	Netherlands	Italy
8.	Switzerland	Switzerland	Switzerland	Switzerland	Japan
9.	Spain	Spain	Spain	Japan	Switzerland
10.	Japan	Japan	Japan	Spain	Spain