US-IRELAND BUSINESS AGREEMENT NEW OPPORTUNITIES FOR SMALL COMPANIES - HARNEY

Mary Harney, Tánaiste and Minister for Enterprise Trade and Employment today (Monday 7 December 1998) announced the signing of an External Co-operative Agreement between the US Small Business Administration (SBA) and Enterprise Ireland. The purpose of the Agreement is to promote strategic alliances between companies in the United States and Ireland. It renews the initiative announced by the President of the US, William J Clinton, at the White House Conference for Trade and Investment in Ireland, held in Washington DC in May 1995.

The signing of the Agreement signals the start of the first ever overseas strategic partnership mission by the SBA which is led by Administrator Aida Alvarez, a prominent member of President Clinton's Cabinet.

Speaking following the signing the Tánaiste said "This Agreement initiates a partnership between the SBA and Enterprise Ireland to facilitate the formation of strategic business alliances between small US companies and Irish companies operating in the European market. It represents a further milestone in the business relationship between America and Ireland and provides tremendous opportunities for companies on both sides of the Atlantic."

"Since the US/Ireland Business Partnership Programme started in May 1995 almost 50 agreements have been concluded. By the end of this year a further 15 partnership deals are expected to be agreed" the Tánaiste said.

The increasing globalisation of business and the small scale of Ireland's domestic market has encouraged many Irish high technology companies to pursue export strategies from their establishment. "The experience that Irish companies have gained from trading internationally, particularly with the single market of Europe, is significant. When coupled with the professional attitude to partnerships, our educated labour force, low corporate tax regime, common language, and stable political and economic environment, this makes Ireland the obvious choice of partner for US companies seeking access to a single market of 360 million people" Mary Harney said.

According to SBA Administrator, Aida Alvarez "The goal for our visit to Ireland is to help both Irish and American entrepreneurs explore business partnership possibilities that will help them grow, expand and export. I specifically choose Ireland for this particular trip because

• Ireland has a strong economy
• Ireland is a leading partner in the European Union
• Ireland is successful - having leap-frogged itself into the 21st Century information age
• the US economic growth depends heavily on exports
• ninety-six percent of US firms that export are small firms
• finally, exporting leads to jobs - better paying jobs."

Welcoming the Agreement, Dan Flinter Chief Executive Officer, Enterprise Ireland, said "The partnership route to developing new business opportunities where both parties bring unique expertise and local knowledge to the relationship has significant advantages. New market opportunities are created for both partners who might otherwise find the prospect daunting and the cost/risk ratio prohibitive. This applies equally to US companies seeking a share of the European market and to Irish companies wishing to enter the US market."