Dáil Éireann Debate, Thursday - 7 April 2022
28. Deputy Neale Richmond asked the Tánaiste and Minister for Enterprise, Trade and Employment the impact that Brexit has had on Ireland’s trading destinations; and if he will make a statement on the matter. [18729/22]
View answer164. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the level to which he expects Irish trade to develop with EU countries and non-EU countries over the next five years; if particular trends have been established; and if he will make a statement on the matter. [19098/22]
View answerI propose to take Questions Nos. 28 and 164 together.
Brexit has fundamentally changed the trading relationship between Ireland and the UK and will continue to impact that trading relationship. The focus of Enterprise Ireland is on supporting clients to adapt and succeed in a post-Brexit environment, sustaining existing export sales and accelerating the diversification of Irish exports.
Notwithstanding the challenges posed by the double impact of both Brexit and the ongoing COVID-19 pandemic, the CSO’s preliminary statistical data for 2021 shows that goods exports were valued at over €165 billion in 2020, the highest total on record, and an increase of 2% over 2020.
Goods Exports to the UK in 2021 were valued at €18.1 billion, an increase of 23% compared with 2020. Exports to Great Britain in 2021 were valued at €14.4 billion, an increase of 17% compared with 2020. Exports to Great Britain accounted for 9% of total exports in 2021. Exports to Northern Ireland were valued at €3.7 billion in 2021, an increase of 54% on 2020.
The EU accounted for €61.4 billion (37%) of total exports in 2021, a decrease of 4% on 2020. Exports to non-EU countries were valued at €103.7 billion in 2021, which is an increase of 6% on the 2020 level of exports. The USA was the largest export destination in 2021, accounting for €52.5 billion or 32% of total exports.
It is too early, based on statistics for 2021, to get a real sense of the impact that Brexit will have on Ireland's longer term trade flows as there are other contributory factors, not least the ongoing COVID-19 pandemic which have an impact on trade. While the UK will remain a major market for Irish companies, expanding the Irish export market in markets beyond the UK will continue to be a priority. The long-term response to Brexit is for companies across all sectors to become more competitive, more innovative and to diversify their export footprint into more international markets. Given the pressures of COVID-19 and the war in Ukraine on trade and supply chains, it is also not possible to accurately forecast how Irish trade will develop with EU countries and non-EU countries over the next five years. However, our trade strategy is to deepen our existing trading relationships and to promote new trading relationships around the globe. We will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements, opening new markets for Irish companies and increasing export and investment opportunities.
Each year, Enterprise Ireland offers a programme of trade missions, trade fairs and knowledge events which give their client companies based in Ireland the opportunity to connect with existing and new customers, access key decision makers, increase sales in international markets and exchange ideas. In recent years, the majority of Ministerial-led trade missions have taken place to the Eurozone, North America and Asia Pacific, which represented the strongest growth opportunities for Irish companies. These trade missions focused on promoting the innovative capabilities and competitive offerings of Irish companies to international buyers in sectors including internationally traded services, fintech, high-tech construction, engineering, ICT and lifesciences.
My Department is currently working closely with its agencies on a trade mission schedule for Q2 of 2022 which will maximise opportunities to help Irish companies to access new markets and to increase the levels of foreign direct investment into Ireland. Trade missions are being planned for the second quarter to the USA, Mexico, Europe and New Zealand. The trade mission schedule for 2022 is being planned and reviewed on a quarterly basis due to the changing global environment and adjustments will be made where deemed necessary.
