Remarks by Mr. Michael Ahern, TD, Minister for International Trade at an Ireland-Croatia Trade Dinner organised by Enterprise Ireland in Zagreb

Monday 26 March 2007

Minister Vukelic, Ambassador, Ladies and Gentlemen,

I am delighted to be here this evening and to have the opportunity to meet so many leading Irish companies, their Croatian partners and also important members of the Croatian Government and business community. This event, which has been organised by Enterprise Ireland, the trade and technology board of the Irish government, gives us an opportunity to come together in a relaxed atmosphere, celebrate the fact that we are doing more business together every year, and look to new opportunities and even stronger relationships in the future.

My objective, in leading this trade mission, is to promote Ireland as a competitive source of world-class expertise, products, and business partnership; to build on the positive impression of Ireland’s economic success in Croatia, and to enhance relationships between Ireland and Croatia, at business and Governmental levels.

Bilateral trade between Ireland and Croatia was worth almost €60 million euros last year, an increase of over 20%. Sales by Irish companies in Croatia were valued at just under €40 million euros. While this level of trade may be comparatively small in relation to the total volume of trade by both our countries, the pattern has been one of steady growth and I am confident that we are about to see a major acceleration in the immediate years ahead. More Irish companies are showing a keen interest in doing business here in Croatia, as the country moves ever closer to EU Accession.

I believe that there are trade opportunities right across the business spectrum, particularly in sectors where Irish companies are already active, and where we have a base of internationally competitive companies offering a match with local market requirements.

Key sectors of opportunity include: software for banks, telecoms, enterprise and government applications; services and technologies in environment, construction, foodstuffs and development; and sub-supply to the electronics, engineering and shipbuilding industries.

This year marks the 50^th anniversary of the foundation of what is now the European Union. The EU has opened accession negotiations with Croatia and the Irish Government has warmly welcomed this decision, as Ireland firmly supports Croatia’s objective of joining the Union. Indeed, enlargement was a key feature of the Irish Presidency of the EU, in 2004. As well as working to successfully integrate ten new Member States, we also worked hard to advance the Union’s future enlargement agenda.  This included the formal granting of Candidate Status to Croatia. I wish you every success in your Accession negotiations.

Ireland joined the European Union in 1973. The framework of the EU offered us a real dynamic for growth and employment.

While our own policies were the primary ingredient for our economic success, there is no doubt that the framework the European Union provided was critical to our development. It allowed Ireland to mediate some of the external forces, over which we previously had little, or no, control. Our membership of the European Union, for the first time, gave us a voice in determining the rules under which we operated. We are now playing with a powerful and positive team, within an enlarging European Union. The advent of European Structural and Cohesion Funds helped us to create a knowledge-based, export-led economy.

Trade is Ireland’s business, and almost all the diverse activities of the Irish economy – investment in manufacture and infrastructure, education and training, research and innovation in products and services – are ultimately validated in the international marketplace. Since 1994, Ireland’s average annual rates of export growth have been the highest among OECD countries, have been twice that of the European Union, and three times the growth of total world trade.

Ireland, because of its comparatively small size, has bred strong export-focused companies with a wealth of experience, a technologically competitive supply base and a drive and a determination to develop new markets. Irish-owned companies, such as are with us this evening, have become successful players in the competitive global marketplace and are continuously fuelling the growth of the Irish economy. Irish companies are engaged in a continuous dynamic process of transformation centred on innovation and internationalisation.

Irish companies across all sectors have become global players, selling to markets throughout the world. Their success is based on a number of key characteristics: a product and related services orientation, backed by R&D investment; a commitment to export-led growth; a niche focus that enables small companies to achieve significant market positions in global niche areas; and a partnership approach to developing new business.

The Irish software industry is a substantial contributor to export based revenue generation in the Irish economy.

Ireland is the single biggest exporter of software solutions in Europe and one of the top three software exporters in the world. The industry has experienced sustained growth over the past ten years and, today, accounts for exports of over €14 billion euros, annually.

The Irish-owned software sector has also seen an increasing number of entrepreneurs starting high value added, high export growth and high potential companies. Over the last number of years, Enterprise Ireland has supported over 500 high potential start-up companies which, today, have a cumulative turnover of close on €1.5 billion euros each year..

Telecommunications is another of Ireland’s major high sectors, which provides major scope for increasing trade with Croatia. It is one Croatian sector where the global trend towards market liberalization is most evident. Croatia is at the vanguard of the industry and far outshines many of its European neighbours in fixed telephone lines and mobile telephony, as well as Internet connections.

Telecommunications is also one of the fastest growing industries in Ireland, with exports trebling annually in the past three years – and I believe that there is significant potential here for us to work together.

This trade mission is organised by Enterprise Ireland, whose role is to ensure that business partners, customers and associates of Irish companies in Croatia are fully informed of the benefits of trading with Ireland. Enterprise Ireland offers a range of services to help professional buying teams identify and evaluate the most appropriate sources of supply from Ireland.

I would like to end by again emphasising Ireland’s firm support for Croatia’s objective of becoming a member of the EU, and we look forward to the day when Croatia becomes a full Member State of the Union. The continual prosperity of both our economies relies on enhancing bilateral relations, and this Irish trade mission is evidence of our strong commitment to positioning Ireland as your business partner. I have no doubt that the Irish companies who are with me on this visit will be successful, both in generating new business and in the formation of lasting partnerships with Croatian companies. I wish you all every success.

Finally, but very importantly, I wish you a very enjoyable evening.

ENDS/TC275