Bernard J. Durkan
Ceist:109 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of new markets established by Irish industry in the past 12 months; and if she will make a statement on the matter. [3212/01]
Written Answers. - New Markets.
Ireland conducts some trade with virtually every country in the world, even if it is at an extremely low level in some cases. The Government, through Enterprise Ireland, supports the development of Irish exports by working with individual companies to move into markets where they are not already active, even if other Irish companies are already active there; by working with companies to improve their market penetration in markets where they are already active; and by seeking to encourage companies to take advantage of opportunities in markets where Irish industry generally has not had planned, strategic activity previously. For exporters it is important to take a strategic approach to market development, and as a Government it is important for us to take the same kind of strategic approach. While in the past year Enterprise Ireland has worked with many companies individually to develop their market strategies, it has also worked to ensure that the level of activity of Irish companies in some key markets is developed. Examples of such activities during 2000 include the following: European/Mediterranean markets (including Egypt, Greece, Israel and Turkey) – A specialist business unit – Market Development – Europe was established within EI to assist its clients to develop their business in European-Mediterranean markets, where Enterprise Ireland does not currently have a local office. During 2000, the market development team assisted 18 companies in four markets – Egypt, Greece, Israel and Turkey – to establish a presence in these markets, bringing the total number of companies active in these markets to 153.
Mexico – Enterprise Ireland in November 2000 hosted a Seminar on Business Opportunities in Mexico. The seminar was organised jointly by Enterprise Ireland, the Irish Mexico Business Association and the Mexican Embassy. The event was designed to inform the business and educational sector of some of the opportunities now opening up in Mexico arising from the opening up of the Mexican economy to the rest of the world through, inter alia, the Mexico-European Union Free Trade Agreement MEFTA, which came into force on the 1 July 2000.
Enterprise Ireland expects to see growing opportunities in Mexico for Irish companies, across a wide spectrum of industry. However, the openings are currently confined to certain sectors, and would appear to lie in software, processed food and education.
India – In September 2000 Enterprise Ireland launched a new guide – Business Opportunities in India, A Guide for Irish Software and IT companies. The guide outlines the opportunities available for Irish companies who are targeting the Indian marketplace. Significant potential exists for increasing trade between Ireland and India particularly through software, information technology and e-business partnerships.
China – the Tánaiste and Minister for Enterprise, Trade and Employment in September 2000 led the largest ever trade mission from Ireland to China. In all, 51 companies participated to explore the opportunities to develop new markets as China continues to open up its economy to foreign investment. The visit represented a very important part of the Government's Asia strategy for the long-term development of foreign earnings in Asia. The strategy identifies China and Japan as the key Asian markets with a very strong focus on China in particular. China's economic growth and impending accession to the WTO, together with its drive to reform the state sector, its privatisation programme, and the massive investment being made to develop the western regions of China, create excellent trade opportunities for Irish companies. These opportunities exist in particular Irish businesses in the software and telecommunications, education services and construction services sectors. Bilateral trade between Ireland and China was worth an estimated £608 million in 1999, with a strong balance in China's favour. Irish exports to China were £93 million, an increase of 57% on the previous year. Imports from China were £514 million in 1999, up 2%.
New Opportunities/Existing Markets – In addition to identifying new opportunities in new, underdeveloped markets, Enterprise Ireland also encourages client companies to exploit new opportunities in existing markets. A recent example was Eur:opp 2003; during 2000, when EI launched a strategy to seriously ramp up the numbers of companies selling in excess of £5 million annually into the eurozone. The new strategy aims to double, from 55 to 110, the numbers of EI client companies selling in excess of £5 million annually into Europe. Continental Europe represents Irish industry's largest potential market. Europe has 290 million customers, yet only 29% of Irish company exports are sold into this market. Eur:opp 2003 is taking a series of actions designed to speed up the rate of entry by Irish owned firms into the eurozone and to provide them with the skills necessary to transact business in Europe. These actions include: the establishment of incubator units in seven locations across Europe; an initiative to increase the number of European buyers coming to Ireland; selling skills workshops; language and culture training; the provision of targeted market intelligence; and a range of actions which will strengthen the competitiveness of Irish companies.
During 2000 Enterprise Ireland intensified its drive to focus client companies on aggressive long-term export marketing strategies. As part of the process almost 500 companies participated in 30 trade missions to overseas markets and 2,500 international buyers were brought to Ireland to develop supply partnerships with Irish companies. In addition 300 companies participated in 35 international trade fairs. Exports to the British and North American markets continued to grow strongly and the establishment of a permanent presence overseas by individual firms is critical to the development of new market opportunities. There was a very positive response to the establishment by EI of incubator units in the US where demand now exceeds supply. These units provide technology companies entering the US market for the first time with a base from which to operate until they acquire their own facilities.