asked the Minister for Industry and Commerce if he is aware of the increase in international trade based on bartering or commodity dealings between States and private and public enterprises; the estimated world trade being carried out by this method; the Government's policy in this matter; and if he will make a statement on the matter.
Written Answers. - Barter and Countertrade Deals.
20.
Limerick East): I am aware of the increase in barter and countertrade deals in international trade which, to a great extent, has had its origin in the world oil supply situation. Because of its nature, definitive figures are not available as to the extent of this trade but reputable organisations such as the OECD and the General Agreement on Tariffs and Trade (GATT) estimate that countertrade — a general description given to various exchange arrangements other than deals based on cash and credit payments — accounts for 5 per cent-8 per cent of world trade.
Such trade is against the spirit and purpose of the GATT. The objective of the GATT is to maintain the free open international trading system. It is the agreed rules of this system which facilitate the continuing development and dispersion of Irish exports, which are so critical to our economic progress. Private entities may, of course, engage, without Government participation, in any business exchanges which are acceptable to them.