Address by Mr. Michael Ahern TD, Minister for Trade and Commerce at the Dinner hosted by Cork Chamber of Commerce, in Shanghai

JC Mandarin Hotel, Shanghai on Tuesday 17^th October, 2006

I am delighted to be here with you, on what is my last evening here in Shanghai. We have a very diverse group here, who all share the vision of increasing trade between Ireland and China and I am sure this gathering will lead to a strengthening of bonds which have been formed.

Ireland and China share a solid passion for trade. Ireland successfully transformed a mainly agricultural economy into one that is focused in the main on internationally traded, high technology, manufacturing and services companies. The parallels with China are obvious.

We also share a commitment to Inward Investment which has been a major factor in transforming the Irish economy. Those of us from Cork will easily recognise how this development has especially transformed our part of Ireland. We are justly proud of the fact that we play host to virtually all the top International companies in the Pharmaceutical Sector in Cork and this has been followed by the embedding of these companies and their diversification into higher value-added areas of activity. The recent announcement of the Biopharmaceutical giant AMGEN to locate in our midst, is a good example of this trend.

No less important has been the creation, from virtually nothing, of a thriving base of world class, high technology, Irish owned companies. It is this vibrant local enterprise that offers the best security that Ireland’s economy will continue to power ahead for the foreseeable future. These are the type of companies represented by the Cork Chamber of Commerce here in China this week.

Irish-owned companies have become highly successful players in the competitive global marketplace and are continuously fuelling the growth of the Irish economy. Ireland is rapidly moving toward a knowledge-based economy, built on innovation and technology, and many of these companies have become world leaders in their respective industries. Ideas and knowledge have helped transform Irish business and have been crucial in the development of the modern Irish economy.

As a result of this knowledge economy focus, dramatic changes have taken place in the composition of Irish exports over the past decade. Ten years ago, exports of software by indigenous companies amounted to €57 million. Last year, exports in this sector reached €1.3 billion.

Similarly, the past ten years have seen a significant market reorientation by Irish exporters and specifically by SME companies. More and more Irish companies have become increasingly global in their marketing outlook. About 25% of all indigenous Irish exports are now sold in markets beyond Europe and the markets of the Asia-Pacific region are increasingly in the sights of Irish companies.

Irish industry and entrepreneurship are of paramount importance to the Irish economy. At no other time, has the future of the economy depended so heavily on the performance of its locally owned companies. Encouraging and supporting entrepreneurs and businesses along all stages of the business development process, is at the heart of Enterprise Ireland’s strategy to ensure that prosperity and development is realised throughout the entire country.

Business between Ireland and China has been growing spectacularly and I have no doubt that there is scope for us to be doing even more business together. Until comparatively recently, geographic distance tended to be a real deterrent to trade. Today, distance is far less of a barrier. The merchandise trade figures speak for themselves. We export goods to the value of €900m to China and import € 3.7bn worth from this country. The Hong Kong figures enhance these totals considerably.

The opportunities for additional growth in trade involving our two countries in the coming years is likely to be stimulated by a mutual emphasis on the concept of business partnership. Yesterday Cork of Chambers and their Shanghai counterparts signed a Memorandum of Understanding to further develop their links and this is very welcome. Today’s successful companies think in terms of global customers and global opportunities, and one of the most effective way to achieve sales growth is through the creation of strategic alliances and partnerships among export-led companies.

I am very confident that the events of this week, combined with the ongoing sterling work of Enterprise Ireland, IDA, Board Bia and Tourism Ireland, combined with the work of the Irish Consulate here in Shanghai and of the Irish Embassy in Beijing, will facilitate solid business opportunities for Irish and Chinese businesses.

I would like to thank the Cork Chamber of Commerce and commend them for initiating this trade mission which I believe will lead to an increase of trade and cooperation between Shanghai and Cork and, of course, to other parts of Ireland too.

Thank you all very much.

ENDS

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