Dáil Éireann Debate, Thursday - 24 May 2018
108. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the degree to which her Department has made alternative proposals in anticipation of Brexit with particular reference to the need to establish contact with new trading partners; and if she will make a statement on the matter. [23073/18]
Amharc ar fhreagra110. Deputy Bernard J. Durkan asked the Minister for Business, Enterprise and Innovation the number of countries with particular reference to new markets with which she continues to be in contact in order to generate new business; and if she will make a statement on the matter. [23075/18]
Amharc ar fhreagraI propose to take Questions Nos. 108 and 110 together.
Promoting diversified export markets in light of the potential impacts of Brexit is a key priority for my Department. This includes markets that are growing and have scale as well as markets where we are already well established but with potential for further growth.
Through the Government’s Trade Strategy, ‘Ireland Connected: Trading and Investing in a Dynamic World’, we aim by 2020 to increase indigenous exports by Enterprise Ireland supported companies, including food, to reach €26 billion and secure 900 new foreign direct investments. Specifically, in relation to Brexit, there is a clear priority to intensify and diversify the export base with a target of 80% of indigenous export growth to 2020 to be outside of the UK market and maintain exports of at least €7.5 billion to the UK. More recently, Government’s Enterprise 2025 Renewed strategy published in March 2018 sets out targets for export growth and diversification within the indigenous exporting base, with ambitions to increase exports as a percentage of total sales of Irish owned companies from 52 percent to between 55 and 60 percent by 2020 and increase Enterprise Ireland client exports beyond UK markets from €14.1 billion to €17.4 billion by 2020. The strategy also targets a 50 percent increase in the number of FDI investments from non-US markets by 2020.
In 2017, Enterprise Ireland launched its Eurozone Strategy as a key element of its supports to help companies diversify their export markets. In particular, it aims to increase exports to the Eurozone by €2bn per annum by 2020, equivalent to 50 percent increase. This would represent one of the most significant shifts in Enterprise Ireland supported client exports into the Eurozone and is particularly important in the context of Brexit.
The Government’s Trade Strategy supports an extensive programme of Ministerial-led trade missions, as part of a major drive towards market diversification. Enterprise Ireland delivered an impressive programme of international trade events in 2017, giving Irish companies the opportunity to meet with potential buyers and network with key influencers in countries around the world. In total, 57 internationally focused trade events were organised by Enterprise Ireland in 2017 including ministerial-led trade missions to Canada, Singapore, Japan, the United Arab Emirates, Oman and a major trade programme as part of the State visit to Australia and New Zealand.
In relation to 2018, the programme of ministerial-led trade missions and events has been finalised and published by Enterprise Ireland, with 70 Ministerial-led trade visits planned to 33 different markets. Several events have already taken place, including ministerial-led missions to the USA in January, and Mexico and Russia in February. Missions to EU markets will be a priority focus for the 2018 programme, together with missions to key markets where the EU has or is negotiating free trade agreements. As part of the St. Patrick’s Day “Promote Ireland” Programmes, Ministerial visits around the world were organised to ensure that we use this exposure to maximise the promotion of Ireland's trade, tourism and investment interests. The Government has signalled its ambition to further enhance its overseas networks through the Global Footprint 2025 initiative, which aims to double the impact of our overseas presence through an increase in our enterprise agency global footprint and Embassy network.
As well as the global efforts supported by our agencies, key to our success has been our commitment to trade liberalisation in order to open new markets for our indigenous sectors. The EU has successfully concluded a number of important trade agreements with trading partners and is in the process of negotiating or upgrading its agreements with many more. These existing EU Agreements and new trade deals will continue to be very important for Ireland. With a small domestic market, further expansion in other markets is essential to our continued economic growth. In this regard Ireland will continue to support the EU’s ambitious programme of negotiating new Free Trade Agreements, opening new markets for Irish companies and increasing export and investment opportunities.
Most recently, the EU–Canada Comprehensive Economic Trade Agreement (CETA) entered into force provisionally from the 21st September 2017. Irish companies may now take advantage of the all-important provisions of CETA including the elimination of tariffs on almost all key exports, access to the Canadian procurement market, the easing of regulatory barriers and more transparent rules for market access. CETA presents new opportunities for Irish business and professionals to work and provide services in Canada.
On the 21st April 2018, the EU and Mexico reached an agreement in principle on a new trade agreement that will be part of the broader Global Agreement. The Agreement will provide a platform to increase Irish exports to Mexico, the current total value is just over €2 billion per year with total imports of nearly half a billion euros per year. It will further remove industrial tariffs and important agricultural tariffs. This will be significant for Ireland’s important Agri-food sector especially for dairy, pork and poultry products. Ireland is a significant exporter to Mexico of powdered milk and milk derivatives but there are currently significant barriers both to increasing powdered milk exports and to commencing exports of fresh dairy produce. There are many exciting opportunities in Mexico for Irish businesses including manufacturing, automotive, engineering, telecommunications, ICT, aerospace, software and service and manufacturing technology. The Agreement will also open up public procurement markets to Irish businesses and remove technical barriers to trade which will reduce the costs of entry to the Mexican market.
The EU is continuing its negotiations with Mercosur and recently announced the successful conclusion of negotiations of the EU-Japan Economic Partnership Agreement. The agri-food sector, in particular will see benefits from access to Japan’s highly valuable export market, with improved access for beef, pork, cheese and processed agricultural products. In addition the EU’s trade deal with Singapore is hoped to come into force by the end of the year.
During his September 2017 State of the Union address, the President of the European Parliament, Jean-Claude Juncker, proposed opening trade negotiations with Australia and New Zealand. This month, the Trade Council of Ministers adopted a decision authorising the opening of negotiations on free trade agreements with Australia and New Zealand, as well as adoption of the respective negotiating directives for the Commission.
Ireland will continue to support the EU’s ambitious programme of negotiating new FTA’s giving Irish firms expanded market access and a predictable trading environment in third countries. My Department has recently commissioned a study to examine the economic opportunities and impacts for Ireland arising from FTAs, both currently in place and in negotiation. The objective is to deepen our understanding of how Ireland can best take advantage of these opportunities, and ensure that our businesses are prepared to access new markets.
