asked the Minister for Foreign Affairs the steps that have been and will be taken to secure an improvement in Ireland's favour in the trade imbalance between this country and the USSR; and if he will particularly state how the objective of an improved balance in trade will be achieved in the light of the efforts by the Soviet authorities to slow down their import growth with a view to reducing the Russian trade deficit with the West.
Written Answers. - Trade Imbalance with USSR.
258.
The expansion which occurred in the commercial exchanges between Ireland and the USSR between 1974 and 1976 was characterised by a rapidly increasing imbalance in favour of the Soviet side. In 1977 this trend was halted and indeed reversed when, due mainly to a 240 per cent increase in the value of Irish exports to the USSR, our trade deficit with that country fell slightly from £20,203,855 to £19,278,000.
While much remains to be done before trade between the two countries can be judged to be developing in a truly balanced fashion, some satisfaction may, I think, be derived from the more positive trend experienced last year, a trend which coincided with the first year of the operation of the Agreement for Economic, Industrial, Scientific and Technological Co-operation between Ireland and the USSR and with the first meeting—last June —of the joint commission established under the terms of that agreement.
I am nonetheless still concerned at the extent of the imbalance and have sought and received reassurances from the Soviet authorities that everything possible will be done to facilitate access for our exports to the USSR. In seeking these reassurances I have indicated that a reasonable balance of trade and trading opportunities is vital for the development of understanding and goodwill between a small country such as Ireland and the USSR.
Last year our exports to the USSR rose from £1,853,974 to £6,336,000, an increase as I mentioned earlier of some 240 per cent. While not satisfied that this figure comes anywhere close to representing the limit of the potential which can be reached, I am encouraged by the trend and look forward to a greater balance in trade between the two countries in the future in the context of the co-operation agreement which now provided the framework within which our exports to the USSR can be expected to expand. In this regard the Government will continue to provide Irish exporters with the official help and assistance which they require in their dealings with the Soviet authorities. It cannot, however, as the Deputy is aware, compel them to concentrate their efforts on the Soviet market.
The slowdown which has taken place recently in Soviet import growth —imports from the West actually fell by 8 per cent in the first six months of 1977 compared with the corresponding period in 1976—will naturally make the achievement of an improved balance in trade more difficult than might otherwise have been the case. However, I take heart from the fact that we have actually succeded in increasing our exports and reducing, albeit slightly, our deficit at a time when the Soviet authorities are cutting down on their imports and I would hope that the positive trend which emerged last year will continue as the full effects of the co-operation agreement are felt in the coming years.