Foreword:
Why A Trade Policy Statement?

International trade is the life-blood of the Irish economy. One job in four is directly dependent on exports; when indirect influences are taken into account, this rises to almost one job in two. We depend on imports for much of our raw materials and consumer goods. We are one of the most trade-dependent countries in the world, with trade accounting for over 140% of our Gross National Product.

This paper sets out the main lines of our trade policy approach and the domestic and international context in which that approach is developed. It responds to a commitment in Partnership 2000 for Inclusion, Employment and Competitiveness to produce a Statement of National Trade Policy. It is also a reflection of the Government's commitment to open government.

By any standards, the performance of the Irish economy in recent years has been quite exceptional. This is so in relation to both wider international experience over the period and our earlier performance. Almost within a single generation, Ireland has moved from being a relatively insular society, with a protected economy, to a very outward-looking one, with one of the most open, trade dependent economies in the world.

Ireland is now reaping the benefits of the change in economic direction. Our economy is growing at a rate well in excess of the EU average. More people are at work and unemployment has been reduced significantly. Inflation has been brought down to a very low level. The Peace Process has opened up the prospect of increased North-South trade to the benefit of all the people on the island of Ireland.

As trade barriers fall and the process of economic globalisation continues inexorably, the key to future trade success lies in the ability of companies to compete with the best on international markets. The main role of Government is to facilitate them in this. The Government are confident that, with the continuation of policies aimed at maintaining and improving Irish competitiveness and with the Government's new emphasis on fostering a strong spirit of enterprise, as set out in the Government's Action Programme for the Millennium, Ireland can continue to trade its way to future prosperity.