Austin Deasy
Ceist:67 Mr. Deasy asked the Minister for Industry and Commerce if he has issued instructions to the IDA and CTT to seek new markets and to revive lapsed markets in the Middle East and Far East; and if not, if he proposes doing so.
Written Answers. - Middle and Far East Markets.
In so far as exports are concerned, the Deputy will be aware that Europe and the US are Ireland's major markets. Consequently the main thrust of our promotional drive must continue to be in these markets. By comparison, the Middle East and Far East only represent a small proportion of total exports. In 1990 Irish exports to the Far East only accounted for 4 per cent of total exports and the Middle East less than 2 per cent.
Nevertheless, I am anxious that each and every market should be fully exploited to the benefit of Irish manufacturers and service suppliers. CTT are constantly analysing market changes to ensure that any opportunities which might occur to Ireland's possible advantage do not go unnoticed.
The recent crises in the Middle East disrupted business in this region. Trading conditions were often difficult or impossible. Exports to the Middle East in 1990 fell by 30 per cent to £279 million. The fall-off in meat exports to Iran, Iraq and Egypt was the main reason for this decrease.
Irish companies will, nonetheless, be represented at two trade fairs in Iran this year and CTT have just returned from a market assessment in Tehran.
As regards Kuwait, I am convinced that in the reconstruction of that country, the best opportunities for Irish companies are in the sub-contracting area. I therefore intend to visit the senior executives of major US and European companies who have won orders in Kuwait, to seek business on behalf of Irish sub-contracting companies. In addition CTT have set up a special task force to service the Kuwait market.
As regards lapsed markets, I will consider the question of re-entering the Iraqi market after the trade embargo has been lifted by the UN and the EC and after Iraq has cleared a substantial part of the debts it owes to Irish companies. All other Middle East markets are being monitored through CTT's network in the region. While export prospects for 1991 for meat and dairy sectors are difficult to gauge, growth for other sectors is expected to be above average.
As regards the Far East, CTT will focus their attention on Japan which is our biggest market in the region. Our exports to Japan suffered a decline in 1990 because of lower values in the dairy and chemical sectors. This year CTT will be organising a number of sectoral missions and I myself intend to lead a trade mission to Japan in the latter part of the year. On 18 July this year I will be hosting a visit to Ireland by the Japanese Minister for International Trade and Industry which will follow upon the visit here of the Japanese Foreign Minister on 10 July. During our discussions I will seek to advance the interest of Irish exporters as well as highlighting Ireland as a suitable location for Japanese investment.
Another Far East market to which I am giving special attention is Korea. In June of this year, I met with the Korean Minister for Trade and Industry and we agreed that Ireland and Korea would conclude an agreement on economic, scientific and technological co-operation. This is intended to open the way for increased export opportunities for this country.
Specialist missions are being organised to Malaysia, Singapore, Hong Kong and Australia.
As regards industrial development, the IDA, through their offices in Tokyo, Seoul and Hong Kong, actively promote Ireland as a location for inward mobile investments.
In Japan, the IDA is competing with 120 development agencies, and over the past four years they secured a number of significant projects from this market. Other Far Eastern investments in Ireland include Saehan Media and Goldstar Company Limited from Korea. Marketing plans are in place to secure more overseas investment from companies in the Far East and progress on these plans will be reviewed on an on-going basis.
At present, the IDA is not promoting Ireland in the Middle East as a location for industrial investment.