International trade is the lifeblood of the Irish economy and in recent years we have prospered from trade. Our economic well-being is now inextricably linked to participation in an open trading system which offers opportunities for all our companies, including clothing companies. The main focus of Government activity, as set out in the statement of national trade policy published in January this year, is on creating the conditions under which exporters can compete on an equal basis on world markets and where importers and consumers have access to raw materials and other imported goods at competitive prices.
It is accurate to say that over 80 per cent of the domestic market for clothing is met by imports. In 1996 total imports were £713 million. However export trade for the sector was also significant and total exports amounted to £325 million. The Government's policy is to help the sector to become more competitive. Since 1996, a special joint initiative is in operation between Forbairt and the Irish Clothing Manufacturers Federation to encourage indigenous small and medium sized companies to become more competitive.
Three-quarters of Ireland's imports in the clothing sector come from our European Union partners. The remaining 25 per cent of our imports come from a range of developing and developed countries. Ireland fully supports international efforts, especially through the International Labour Organisation to eliminate slave and child labour practices and to encourage compliance with these and other core labour standards. Currently we are supporting ILO efforts to have a declaration on core labour standards adopted which specifically targets the elimination of all forms of forced or compulsory labour and the effective abolition of child labour.
Ireland also fully supports EU efforts to encourage compliance with core labour standards through the new EU generalised system of preferences, or GSP scheme. Under the new scheme, preferential access to the EU market can be denied to countries which fail to ensure compliance with core labour standards. This provision has already been applied against imports from Myanmar — formerly Burma — due to the use of forced labour in that country. The GSP scheme also provides for the introduction of a new special incentive arrangement providing further duty concessions to reward those countries which can demonstrate compliance with ILO principles on the minimum age for admission to employment. The special incentive arrangement is expected to enter into force shortly.