Vol. 402 No. 7
2 Mr. Bell asked the Minister for Industry and Commerce if he has any plans to assist industry with sales of and promotion of goods in Japan; his views on whether only limited success has been achieved under the GATT in having Japanese markets opened up to EC trade and that Japan's current trade policy is still complex and difficult to penetrate for Irish and EC goods; and if he will make a statement on the matter.
The promotion of the sale of Irish goods and services in the Japanese market is primarily a matter for Córas Tráchtála Teoranta who have been very active in assisting Irish companies with their sales efforts in Japan. Córas Tráchtála Teoranta have an office in Tokyo since 1974.
Japan is a priority market for Córas Tráchtála Teoranta and they are continuing to commit significant resources to further develop penetration of that market by Irish companies. This year, for example, Córas Tráchtála Teoranta initiated 16 separate activities on behalf of Irish exporting companies. these activities included a ministerial trade mission for 20 companies in October, a Japanese inward buyer mission to Ireland and separate sectoral missions to Japan in such areas as automotive components, fashion goods, services and packaging technology.
The success of such activities is borne out by the performance of Irish exports to Japan. Irish exports to Japan rose from £238 million in 1988 to £317 million last year, a rise of 33 per cent.
In addition, I and officials of my Department meet regularly with our counterparts from MITI, the Japanese Ministry for International Trade and Industry, for discussions on many issues including bilateral trade matters. These discussions further the interests of Irish exporters in Japan.
Earlier this year the Japanese Goverenment announced a major import expansion programme at an estimated cost of US $3 billion with the objective of reducing Japan's trade surplus with the rest of the world. The main elements of the programme are: tax incentives for importers; elimination of tariffs on over 1,000 items; budget allocations to promote imports; soft loans for importers; and inclusion of 1,500 Irish companies on a Japanese-based import databank.
In order to maximise the benefits of this programme, Córas Tráchtála Teoranta have entered into an agreement with JETRO, the Japan External Trade Organisation, to ensure that the full potential of Ireland as a supplier of quality goods and services is brought to the attention of the Japanese business community.
As regards EC and GATT efforts to open the Japanese market, I can tell the Deputy that in April 1988 the EC Council of Ministers agreed a range of measures aimed at freeing access to that market, by identifying and seeking the removal of barriers affecting individual sectors such as liquor, pharmaceuticals, motor vehicles, cosmetics, medical equipment, intellectual property and agriculture.
These measures are perceived as having been successful in tackling particular sectoral barriers. For example, the Community resorted to the GATT dispute settlement procedure in the case of the discriminatory taxation system operated by Japan on imported spirits. This was found to be damaging Community exports. The Japanese government have subsequently begun to amend their taxation system and this is resulting in an increase in Community exports of spirits to Japan.
In addition to these bilateral efforts, the present round of GATT talks will provide another opportunity to improve access to the Japanese market since Japan will be expected to participate fully in any market opening measures agreed at the conclusion of the round.
The Japanese market is very competitive and difficult to penetrate. The Japanese consumer is very highly selective and demands very high quality products and service. However, it is important to bear in mind that freeing up of access to the Japanese market benefits all exporting countries worldwide and consequently we must continue to fight for our share of any expansion of imports into that market. It should be noted that the biggest increase in manufactured exports to Japan since 1985 has come not from the US or the EC but from Taiwan, Thailand and South Korea.
Would the Minister agree that tariffs and quotas are still unacceptably high as far as Irish industry and the Community at large are concerned?
That is correct. Certainly on the tariff side there is no doubt that Europeans and westerners generally would regard the Japanese tariffs as abnormally high in the present climate.
