Vol. 398 No. 10
116 Mr. Durkan asked the Minister for Industry and Commerce the efforts which have been made to establish new markets for Irish produced goods in Eastern Germany, having regard to the political changes that have taken place in that region in the past six months; if new markets have already been established or if consideration has been given to same; and if he will make a statement on the matter.
Total Irish trade with East Germany in 1989 amounted to only IR£13.2 million, of which Irish exports accounted for IR£4.4 million. In common with the other countries of Central and East Europe, East Germany has been a difficult market for Irish exporters. Lack of convertible currency has been a particular problem.
The advent of German unification, however, should greatly improve opportunities for Irish exporters. The prospect of developing trade, based on a hard currency with which the punt has already enjoyed a stable exchange rate over several years, is both real and significant. With Irish exports to West Germany amounting to IR£1.6 billion in 1989 and based on estimates made by the Federal Ministry of Economics in Bonn that the East German economy is about one-tenth the size of West Germany, the potential for profitable and sustained market expansion, following on unification is clear. In this respect, however, the shape of whatever transitional arrangements are worked out for German unification, particularly in the trade area, will be an important influence.
