Work of the Bilateral Trade Promotion Unit
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With effect from June 2011 certain functions relating to Trade Promotion have been transferred from this Department to the Department of Foreign Affairs and Trade. These include, specifically, responsibility for the operation of the Foreign Trade Council, implementation of the Strategy for Trade, Tourism and Investment and the management of five Joint Economic Commissions (formal bilateral intergovernmental fora which deal with trade and economic links).
Trade Missions
Each year the Unit coordinate a considerable number of Ministerial-led overseas Trade Missions (responsibility now shared between the Department of Foreign Affairs and Trade and this Department). These involve high-level meetings with Ministers and officials in the other country, an extensive range of meetings for participant Irish companies (client companies of Enterprise Ireland) with the aim of developing contacts and/or finalising contracts/joint ventures with partner companies in those countries and also developing an awareness of Ireland as a supplier of world-class goods and services.
One recent such Trade Mission involved Minister of State John Perry leading a group of 49 Enterprise Ireland client companies to Australia (Melbourne, Sydney and Canberra) from 10th to 17th September, 2011. This mission included many high tech companies from sectors such as e-learning, Financial Services and Telecoms. The Australian region has seen a remarkable and prolonged growth in Enterprise Ireland client company exports, from ¤90m in 2004 to over ¤200m in 2010 and is predicted to grow further as the Australian economy outperforms most of its advanced economic peers.
Another recent Trade Mission involved Minister Richard Bruton leading a group of more than 60 Enterprise Ireland client companies to the USA to the fast growing South East States of Georgia, North Carolina and Florida. This was new territory for many Irish companies and the Trade Mission was an opportunity to establish understanding and awareness of what Ireland has to offer and to build networks and contacts to enhance both trade and research collaboration.
Other Trade Promotion Work
The Unit also coordinates incoming visits by various Ministers, officials and delegations from a range of countries on an ongoing basis and it works with foreign embassies located in Dublin on developing Trade.
The Unit works closely with the development agency, Enterprise Ireland, which is the Government body responsible for the development and growth of Irish - owned enterprises in world markets. Information on other recent trade promotion events undertaken by that Agency can be accessed through the Enterprise Ireland’s Press Release page.
Key Trade Statistics
The Unit maintains statistical data on Irish trade on a month-by-month basis and analyses trends in our import/export performance of both merchandise and services trade. A summary of Ireland’s trade performance from 2004 to September 2011 can be accessed at the following link:
• Summary of Irelands Trade Performance (PDF 628 KB)
• This table is updated quarterly by the Unit and reflects the ongoing revisions by the Central Statistics Office (CSO). This link also includes a list of Ireland’s top merchandise and services export categories, merchandise export destinations countries (2010), services export destination countries (2010) and a list of the key Euro exchange rates trends over recent years. In addition the Unit also maintains a range of country-specific trade data.
• Merchandise Trade
The slight fall in Irish merchandise exports in 2008 and 2009 was reversed in 2010, with a 6% increase being recorded - to ¤89.2bn. This was a record level and the Merchandise Trade Surplus also reached a new high of ¤43.6bn
Ireland’s Top 5 Merchandise Export Destinations 2010:
- USA ¤20.8 billion;
- Belgium ¤12.8 billion;
- Great Britain ¤12.5 billion;
- Germany ¤6.4 billion;
- France ¤4.5 billion.
For more detailed statistics on merchandise trade visit the Central Statistics Office’s website at: http://www.cso.ie/statistics/external_trade.htm.
• Services Trade
In 2010, Services Exports increased by 10% to a record high of ¤73.8bn.
Ireland’s Top Services Export Destinations 2010:
- United Kingdom ¤14.4 billion
- Germany ¤ 7.8 billion
- USA ¤5.2 billion
- France ¤5.1 billion
- Italy ¤4.2 billion
- Other detailed information is available on the Central Statistics Office’s website at: http://www.cso.ie/releasespublications/documents/economy/2010/sei2009and2010.pdf.
Other research information relating to trade issues
The website of Forfás, Ireland’s National Economic Development Authority and Advisory Board, which comes under the aegis of this Department, has reports on competitiveness and industrial policy issues accessible at http://www.forfas.ie/publication/search.jsp, some of which include trade policy aspects.
Other Initiatives
Strategy for Trade, Tourism and Investment
In response to the Smart Economy Framework, this Department developed a Strategy for Trade, Tourism and Investment that was launched in October 2010. This is the first time that all of the relevant agencies and Department involved in promoting overseas trade, tourism and investment have together come up with an integrated approach to achieving a set of agreed priorities and targets for both existing and new high growth potential markets. The targets agreed by these agencies – Enterprise Ireland, IDA Ireland, Bord Bia, Tourism Ireland and Science Foundation Ireland- are to be implemented through a suite of actions driven by a Trade Council. Responsibility for this Strategy and the Export Trade Council has now transferred to the Department of Foreign Affairs and Trade. The Council is chaired by the Tanaiste, Minister Eamon Gilmore TD and Minister Richard Bruton TD is a member.
This Strategy will build on the success of the final phase of this Department’s Asia Strategy 1999 – 2009. That Asia Strategy had set a range of sectoral targets to expand Ireland’s political, trade and economic links with the main Asian economies. Achievements on the key targets were very impressive, with a significant expansion of trade and other links between Ireland and the key Asian markets.
Other Areas of Responsibility
Export Credit Insurance
Pre – 1998 Scheme
The Export Credit Insurance Scheme, which was administered by this Department for many years, was suspended in 1998. Some export credit debt owing to the State remained outstanding for a number of years but, more recently, recoupment efforts have been ongoing and are continuing with considerable success. A total of ¤6.6.m has been recovered since 2004. This Unit is continuing to pursue outstanding recoverable debts.
Possible reintroduction of State-supported Export Credit Insurance
Since the State withdrew from the provision of Export Credit Insurance in 1998, exporters have been able to avail of such insurance on the open market, as commercial operators made such cover easily available. However, in early 2009, insurers were reducing or withdrawing cover and there had therefore been some market failure in this sector.
In response to this problem for business, this Unit arranged that a reviewof the export credit insurance market be carried out by Forfas. This report concluded that there would be significant problems associated with a State scheme as sought. It was therefore decided to undertake a full-scale forensic examination of the Credit Insurance market in Ireland and international consultants KPMG were commissioned to undertake this work. Their report found that the introduction of a State-backed Short-term ‘Top –up’ scheme would be expensive and of very limited impact, and that a negligible number of jobs would be supported by such an initiative. In addition, it was established that there were indications that this market was showing signs of recovery and that the insurance companies should therefore begin to provide better levels of cover from now on. Accordingly, based on the overwhelming weight of evidence in the KPMG report, the Government decided in November 2009, that a State-supported scheme of short-term export credit insurance should not be introduced.
The KPMG report also suggested that we should investigate a possible Medium-term intervention (where the risk period is over 2 years). This is very distinct from Short-term cover, where the risk period is less than two years. It should be appreciated that most Irish exports do not fall into the medium-term category, which caters more for large projects or infrastructural goods and services. This Department examined the potential for providing such a medium-term insurance scheme and found that there is very little requirement for such a scheme. Accordingly, and in view of the significant administrative costs which would be involved in developing such an initiative, it was decided in mid - 2010 that no action would be taken on the introduction of such a scheme.
More recently, the availability of export credit insurance on the commercial market has improved, with new entrants to the market and new products being provided.
OECD Anti-Bribery Convention
The Organisation for Economic Co-operation and Development (OECD) initiated a Convention on Combating Bribery of Foreign Officials in 1997.
This Convention is aimed at reducing corruption by encouraging sanctions against bribery in international business transactions, carried out by companies based in Convention Member Countries. This Unit has been actively involved in Ireland’s awareness raising obligations with the Irish development agencies and with Irish trade and professional organisations that interact with Irish companies operating abroad.
Details are set out in the brochure produced by this Unit:
Further information on the OECD Convention and of the wider Irish Government involvement in this process, is explained on www.anticorruption.ie.
OECD Initiative
The Unit represents Ireland at the Organisation for Economic Cooperation and Development (OECD) regarding the implementation of the OECD Guidelines for Multinational Enterprises. These Guidelines, which are voluntary, comprise recommendations addressed by Governments to multinational enterprises operating in countries that adhere to their provisions and provide voluntary principles and standards for responsible business conduct in a range of relevant areas. The Unit also acts as National Contact Point (see details below) for the promotion of these Guidelines.
Further information on related issues is available in the brochure OECD Investment Committee: Promoting Investment for Growth and Sustainable Development Worldwide (PDF, 416KB). As a follow-up to the Guidelines, the Investment Committee has developed a report entitled The OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones which aims to help companies that invest in countries where governments are unwilling or unable to assume their responsibilities.
Irish National Contact Point for OECD Guidelines for Multinational Enterprises
The OECD Guidelines for Multinational Enterprises provide voluntary principles and standards that the Irish government encourages Irish businesses to comply with wherever they are trading and operating.
What are the Guidelines?
The Guidelines are recommendations on responsible business conduct addressed by Governments to multinational enterprises operating in or from their territories. The OECD Guidelines are a multilaterally endorsed and comprehensive code that Governments are committed to promoting. The Guidelines are voluntary in nature and not intended to override local laws and regulations. They serve as supplementary principles and standards of corporate behaviour of a non-legal character.
The Guidelines are divided into ten chapters that contain advice for business in areas such as employment and industrial relations, combating bribery, consumer interests and taxation. Also included in the Guidelines are implementation procedures. You can download the full text of the Guidelines:
http://www.oecd.org/document/28/0,3343,en_2649_34889_2397532_1_1_1_1,00.html
Countries adhering to the OECD Guidelines
A. OECD members
Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States.
B. Non-OECD members
Argentina, Brazil, Chile, Estonia, Egypt, Israel, Latvia, Lithuania, Morocco, Peru, Romania & Slovenia.
Irish NCP contact
Mr Gerard Monks. E mail: gerard.monks@djei.ie
Last modified: 11/01/2012
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