Free trade deal to boost Irish exports to Asia - Minister Kelleher

16 September, 2010

A landmark Free Trade Agreement (FTA) signed today [Thursday] in Brussels will boost Irish exports to Asia, according to the Minister for Trade and Commerce, Billy Kelleher TD.

This is the first significant FTA since the European Union’s trade strategy was redefined by Global Europe - the EU’s trade policy statement issued in 2006.

That policy set an objective for the EU of concluding a series of comprehensive bilateral free trade agreements to create better economic ties with key markets and trading partners.

The agreement with South Korea, signed today at a Council of Ministers meeting in Brussels, is the first flagship trade deal under that policy.

Minister Kelleher said signing the agreement demonstrates the Government’s commitment to boosting our exports and driving economic recovery.

‘Open markets and fewer restrictive trade rules will give our exporters more opportunities in more markets.

‘Asia has been a key market for export growth and this deal supports our drive for economic recovery based on export-led growth,' said Minister Kelleher.

He said all our top exports to South Korea will benefit from the more liberal trade regime this agreement will introduce.

‘For example, our exports of pharmaceuticals, electronics, medical devices and spirits will very quickly face zero tariffs in Korea.

‘Irish whiskey, for example, will be duty free into Korea after three years.

‘This deal is good for exporters, small businesses and jobs,’ said Minister Kelleher.

ENDS/TC450

Editors’ notes

Asia and South Korea are the world’s fourth and 15th largest economies respectively. Exports from Ireland to Korea amounted to €330 million last year while exports of services there in 2008 totalled €430 million. South Korea is one of the world’s important developed economies with a population of almost 50 million. Nearly 75pc of Ireland’s exports to South Korea last year came from the electronics and life science sectors. These will be the first to benefit from the early removal of import tariffs. The FTA will quickly eliminate €1.6 billion of Korean import duties on EU exports of industrial and agricultural products. The EU will remove €1.1 billion in duties on Korean exports to the EU which will benefit consumers and businesses.