Address by Minister Michael Ahern on the occasion of the Launch of Irish Exporters Association Asia Trade Forum

And the Official Signing of B2B MOU with India

On Tuesday, 3^rd February 2004 at 12.45

In Le Meridien Restaurant, Shelbourne Hotel

Ambassadors, Ladies and Gentlemen, Distinguished Guests,

I am very happy to be here today to welcome, on behalf of the Government, this new initiative by the Irish Exporters Association. This is an initiative, which will give an added boost to the actions being taken by the Government and Agencies involved in the promotion of Irish trade and economic links, particularly with Asia.

The Government's Asia Strategy, developed following the Taoiseach's visit to China in 1998, recognised that Asia would be the major engine of world economic growth in the first half of the 21st century and the consequent importance of geographically diversifying Ireland's trade to encompass the Asia Pacific Region.

As a result, we have seen the expansion of our diplomatic and promotional presence across the region, increasing political contacts and raising awareness of Ireland in Asia.... and of Asia in Ireland. . An Embassy was opened in Singapore. Consulates General were established in Shanghai and Sydney. Extra senior posts in already established Embassies were also created. Enterprise Ireland representation has also been increased significantly.

It is good to see that trade with the Asia and the Middle East region, and in particular with the countries of North East Asia, has seen tremendous growth since 1997.

In June of 2003 it was estimated that the region now accounts for just over 8% of Irish indigenous exports, amounting to somewhat over €315 Million. While this is still a small percentage of total exports, it is well above the EU average of about 6%.

Recently, Enterprise Ireland carried out a review of companies to assess their needs in the future, and it pointed out the growing importance of the Asia region in Irish international trade. The Government welcomes this interest, and we will continue to develop and expand our presence and level of activity in Asia in line with the wishes of Irish exporters.

As part of our Asia Strategy, a targeted campaign to increase awareness of Ireland as a supplier of high quality goods and services and as an investment location among key economic decision- makers has been running now for four years and a programme of events has been co-ordinated and monitored by a committee drawn from the public and private sectors. The Asia Trade Forum, being launched today, is an example of a project which once established will be an on-going facility for business. This is the kind of project which we are keen to see, given that funding for the Awareness Campaign will not continue indefinitely.

I am delighted that today we are also witnessing the establishment of the first business-to-business platform by the Asia Trade Forum. I offer cead mile fáilte - a hundred thousand welcomes - to Mr Balachandhran and Mr Mittal from the Federation of Indian Export Organisation who are here to endorse a Memorandum of Understanding with the Irish Exporters Association.

Trade between Ireland and India has increased consistently year on year up to 2002. Indications for 2003 however point to something of a decline, part of which is accounted for by global economic developments, particularly the weakness of the dollar. In 2002, there were significant increases in Irish exports to India in the Telecoms Equipment, Metal Manufactures and Industrial Machinery sectors as well as Manufactured Articles and Pharmaceuticals. Imports from India are dominated by Tea, Pharmaceuticals and Textiles.

Both Ireland and India have developed strong IT and software industries and we are both positioning our economies to be significant players in the evolution of this market sector. This is sector where innovative companies with leading edge products and services can thrive. It is also a sector in which strategic partnership between small, medium and large companies, locally and internationally, is recognised as the most effective way to ensure competitive advantage.

We work well together because of what we have in common. We share a recent history of dynamic economic growth based on well-established traditional industries and new knowledge and technology enterprises, investment in education and training, support for innovation and R&D, and an ability to succeed in the global marketplace. The surging economic and export growth of both our countries over the past ten years, particularly in information technologies, has positioned us as trading nations and global players.

I congratulate the Irish Exporters Association on this new initiative which will be a valuable facility for Irish firms in founding business partnerships with Asian firms and I wish great success to the business-to-business platform being set up under the Memorandum of Understanding between the Asia Trade Forum and the Federation of Indian Export Organisations.

ENDS/TC 78