James O'Connor (Cork East, Fianna Fail)
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75. To ask the Minister for Foreign Affairs and Trade the role her Department plays in the action plan on market diversification; and if she will make a statement on the matter. [23046/26]

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question No. 75 is in the name of Deputy James O'Connor and is being taken by Deputy McCormack.

Tony McCormack (Offaly, Fianna Fail)
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As the atmosphere grows here in Ireland but also out in Prague, I wish the Irish team and the management all the best as they try to qualify for the world cup. We all remember the previous competitions we qualified for and the pride it brought to our great country. I am back to the day job now so I would like to ask the Minister what progress has been made in implementing the market diversification action plan and the measures being taken to support Irish exporters in accessing new international markets?

Helen McEntee (Meath East, Fine Gael)
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From what I have seen, it looks like half of the island has left without a ticket but I am sure they will enjoy the match either way. I wish best of luck to our team, of course.

The Government Action Plan on Market Diversification was developed jointly by my Department and the Department of Enterprise, Tourism and Employment, with input from other Departments and agencies. It was developed with input from the business sector, most importantly, through the Government trade forum as a direct response to helping Irish business diversify their markets globally. In particular, given the challenging and uncertain environment we are all working in, it is very much about deepening and strengthening our economic relationship with our core partners such as the US, UK and EU but also about exploring new and emerging markets, of which there are many.

It was published last August and we have already published the first implementation update, together with the two lead Departments. There is an implementation plan, which is led by a headquarters market team. My colleague the Minister, Deputy Burke, and I update the Cabinet committee on economy, trade and competitiveness and the implementation of the plan every six months. The first report was a very positive report in terms of work that has been carried out. To give an example, we have held a successful first joint economic mission with the United Arab Emirates. This was held in the UAE in December with three Ministers from here in attendance undertaking detailed trade promotion activities. We have had our largest ever St. Patrick's Day programme, which many colleagues were on, and it saw 36 representatives visit 47 different countries. While the focus was on our diaspora and our cultural connections, there was a huge enterprise and trade focus looking at how we can explore and expand our markets.

I was in Boston and had an opportunity to meet with the representatives of some fantastic Irish companies who are expanding in the US but also to look at some of the large US companies we have here as well and how we can convince them to expand and do more here. There were significant early results on expanding our State agency footprint as well. There are new representatives for IDA Ireland, Enterprise Ireland and Tourism Ireland in Seoul, Zurich, Dubai and Deli. There are new innovation attachés as well who are in Boston. I met my own just in the past week in San Francisco. Other trade missions are also being expanded and developed for the year ahead. I will come back but there is a lot already happening and a very positive plan.

Tony McCormack (Offaly, Fianna Fail)
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I thank the Minister. I welcome the continued focus on market diversification, particularly given the increasingly uncertain global trading environment in which Irish businesses are operating. Recent progress on the EU-Australia trade agreement demonstrates the opportunities that exist for Ireland to broaden its international trading relationships. However, this must also be viewed in the context of ongoing uncertainty around tariffs internationally and continued volatility in oil and gas markets, all of which create real risks for a small, open and highly export-dependent economy like ours.

Ireland's growth model has been strongly export-led for decades. While this has delivered enormous benefits, it also leaves us particularly exposed to geopolitical and economic shocks. In that context, the diversification is not simply desirable; it is essential for safeguarding long-term economic stability, employment and investment.

Can the Minister outline how the Department is actively positioning Ireland to benefit from new EU trade agreements and emerging global markets, while also mitigating the risk arising from tariff instability and energy market volatility?

Helen McEntee (Meath East, Fine Gael)
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I too will take this opportunity on the floor to welcome the agreement of the EU-Australia trade deal this week. This is something that will open up Irish markets to a substantial economy and one where we are very much aligned. We see Australia as trusted trading partners. There is further exploration happening and we are looking at other trade deals across the globe. Of course, we hope to ratify CETA as well this year in its tenth year. The Minister of State, Deputy Byrne, is bringing forward that legislation and we will visit Canada in the next few weeks to highlight just how much progress has been made and how valuable it is. It has been worth about €10 billion to our economy over the ten years.

There is more we can do outside of trade deals and I am very conscious of the fluctuation and changes that have happened in the tariff environment, particularly with the US. That is why during our Presidency, we will particular focus on what we can do within the European Union. The Deputy will know three of our priorities are competitiveness, security and our values from a competitiveness perspective. This will be about completing the Single Market. There are barriers within the Single Market that are preventing us from doing better and more business. It will be about making sure we focus on the capital markets union and banking union so we open up more finance. I will come back to the Deputy on the rest.

Tony McCormack (Offaly, Fianna Fail)
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While strategy for diversification is welcome, the reality is that Ireland remains highly concentrated in terms of trade exposure. Around one third of exports go to the United States and Ireland holds over €1 trillion in foreign investment stock, the majority of which originates from US-based multinational firms. At the same time, the UK and the European Union collectively remain by far our largest overall trading partners. This level of concentration creates a significant vulnerability in periods of global economic or political disruption.

Can the Minister outline what measurable progress is being made in reducing Ireland's exposure to a narrow set of markets and sectors? How will the Department ensure that diversification efforts translate into real and sustained growth in trade with new partners rather than remaining at the level of policy ambition?

Helen McEntee (Meath East, Fine Gael)
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It is connected to what I was saying about the work we are doing in the EU, such as focusing on competitiveness and simplification so we can reduce some of the barriers, being honest, that we have imposed on ourselves that are adding cost to business. We are still focusing on the main trading partners we have. The EU is one of them and the US is a critical one. A huge amount of our focus and my time is making sure we can get absolute clarity on what the tariffs are and the implications for the various different sectors that are important to us.

We know there are certain industries, particularly agrifood and medical technology, where we need to make greater progress because of the current tariffs. That work is under way because no matter what we do and how much we diversify, the EU, US and UK will be our most important trading partners. With all of these other opportunities, be it through China, Australia or India, where we have a market that is hugely untapped, or in Canada, where we believe we can make much more progress, we still need to make sure that we are getting the most out of the relationships that are closest and most important to us.

While there are challenges there at the moment, I believe, particularly through our Presidency, there is an opportunity for us in our relationship with the UK in trying to bring that closer again with the EU and breaking down those barriers in the EU along with creating stability with the US that will benefit our businesses in so many different ways.