Dáil Éireann Debate, Tuesday - 10 July 2018
357. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which potential challenges or threats to the development and expansion of trade and marketing for Irish goods have been identified; and if she will make a statement on the matter. [30995/18]
View answerIreland is an open, highly developed and well-connected economy that is dependent on international trade and investment for sustainable growth. With a small domestic market, further expansion in other markets is essential to our continued economic growth.
I am well aware of the shifting and evolving global challenges which may affect us in the future. No open economy like ours can be fully shielded against global impacts. Brexit has profound implications for our companies that depend heavily on trade, and intricate, interwoven, supply chains with Northern Ireland and the rest of the United Kingdom. Research commissioned by my Department estimates significant exposure to Brexit in our Agri Food, Pharmaceutical, Electrical Machinery, Wholesale and Retail and Air Transport Sectors.
There are, of course, other challenges too, such as the imposition by the US of tariffs on imports of steel and aluminium to the US, including from the EU.
In the context of these challenges, I believe that we have the right policies to build resilience where possible and firmly strengthen our competitiveness and innovative capacity, thus ensuring the economy is properly positioned to meet any external challenges. "Enterprise 2025 Renewed" and "Building Stronger Business; Responding to Brexit by Competing Innovating and Trading" are part of that policy mix.
Last month the Government formally launched the “Global Ireland – Ireland’s Global Footprint to 2025” initiative which will double the scope and impact of Ireland’s global footprint in the period to 2025. Global Ireland 2025 will support Ireland’s efforts to grow and diversify export markets, inward investment and tourism. It will ensure that Ireland is better positioned to build the alliances necessary to advance its interests and defend its positions in a post-Brexit EU, while also helping to secure our deep and positive relationship with the UK and its constituent parts into the future. Global Footprint 2025 envisages further increases in our enterprise agency global footprint and Embassy network.
The Government’s Trade Strategy, ‘Ireland Connected: Trading and Investing in a Dynamic World’, supports an extensive programme of Ministerial-led trade missions, as part of a major drive towards market diversification. This includes markets that are growing and have scale as well as markets where we are already well established but with potential for further growth.
The Government’s Enterprise 2025 Renewed strategy published in March 2018 sets out targets for export growth and diversification within the indigenous exporting base, with ambitions to increase exports as a percentage of total sales of Irish owned companies from 52 percent to between 55 and 60 percent by 2020 and increase Enterprise Ireland client exports beyond UK markets from €14.1 billion to €17.4 billion by 2020. The strategy also targets a 50 percent increase in the number of FDI investments from non-US markets by 2020.
In 2017, Enterprise Ireland launched its Eurozone Strategy as a key element of its supports to help companies diversify their export markets. In particular, it aims to increase exports to the Eurozone by €2bn per annum by 2020, equivalent to 50 percent increase. This would represent one of the most significant shifts in Enterprise Ireland supported client exports into the Eurozone and is particularly important in the context of Brexit.
As well as the global efforts supported by our Enterprise Agencies, key to our success has been our commitment to trade liberalisation in order to open new markets for our indigenous sectors. The EU suite of Free Trade Agreements (FTAs) with third countries help to open new markets, break down barriers and provide new opportunities for Irish based firms. Brexit has reinforced the importance of accelerating the delivery of EU trade deals with leading economies and regional blocs. We continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements giving Irish based firms expanded market access and a predictable trading environment in third countries, including SMEs. To this end, my Department has commissioned a major examination of the economic opportunities and impacts for Ireland arising from EU Free Trade Agreements which will be available later this year. The objective is to deepen our understanding of how Ireland can best take advantage of these opportunities, and ensure that our businesses are prepared to access new markets.
