Bernard Durkan (Kildare North, Fine Gael)
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Question 129: To ask the Minister for Enterprise, Trade and Employment the number of new markets for Irish products which have been established in the past two and a half years; the markets lost in the same period; and if he will make a statement on the matter. [6462/05]

Micheál Martin (Cork South Central, Fianna Fail)
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Ireland exports across the globe. As such, there are virtually no markets to which Irish companies do not export. The Government's strategy is to assist companies, through Enterprise Ireland, on an individual basis to deepen market penetration where they are already active and to identify opportunities in markets where they have not yet achieved significant penetration.

In terms of export destinations, the EU is by far our most important market, accounting for 64% of the total in 2002, 61.3% in 2003 and 62.2% for the January to October period in 2004, the latest for which statistics are available. The 2004 figure includes the ten countries which acceded to the EU on 1 May of that year.

The drop in the percentage of exports going to the EU is accounted for almost entirely by a drop in exports to the UK, which was caused by an unusual trading pattern, thought to be related to a VAT fraud in the UK, in the years before 2003. The UK accounted for 17.7% of exports in the January-October period last year, having accounted for 18.2% of the total in 2003 and 24% in 2002.

The US is now our largest single export market taking 19.9% of exports in the January-October period last year. It took 20.6% in 2003 and 17.6% in 2002. Total exports to the US declined by an estimated 2.5% in 2004 following increases of 4.4% in 2002 and 2.6% in 2003. This fall is thought to be due principally to the rising value of the euro against the dollar.

Exports to Asia in 2004 have proved to be very positive, growing by over 10% in the January-October period over the same period in 2003. Of particular note is the increase of 20% in exports to China and Hong Kong, reflecting both China's strength as an emerging manufacturing sector and the Government's focus on developing economic relations with China under the Asia strategy. It also justifies the Government's determination to reinforce the effectiveness and relevance of the strategy in its next phase, as announced by the Taoiseach during his recent visit to China.

Bernard Durkan (Kildare North, Fine Gael)
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Question 130: To ask the Minister for Enterprise, Trade and Employment if the range of imports in the past two and a half years suggests any threat to home production; and if he will make a statement on the matter. [6463/05]

Michael Ahern (Cork East, Fianna Fail)
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Over the past 15 years, Ireland has emerged as one of the most globalised economies in the world. This is a reflection of our extremely strong record in attracting investment and growing trade.

This open structure means that we have unusually high levels of both exports and imports. Since our domestic economy is so highly internationalised, it is estimated that approximately two thirds of our imports are used by industry in Ireland as input materials, and are subsequently re-exported after integration in higher value products.

As such, the strength of imports is a reflection of the strength of home production — indeed, a change in the pattern of imports, either positive or negative, is usually followed in subsequent months by a corresponding change in exports. Furthermore, imports contribute to enhancing the competitiveness of the economy and so strengthen the base of our industry and services.

The pattern of imports in the past two and a half years has done nothing to change this situation. However, the Government recognises the need for Irish industry to maintain and accelerate its progress towards higher value-added industries, a process which is necessary as a result of our increasing prosperity. In certain products, we simply cannot match the cost base of low cost production centres. Where companies are negatively affected by lower cost imports, the Government, through its economic development agencies and principally Enterprise Ireland, can offer advice and assistance to them to enable them to adjust to the new situation and maintain growth.

Bernard Durkan (Kildare North, Fine Gael)
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Question 131: To ask the Minister for Enterprise, Trade and Employment the number of import and export markets established during the recent promotional trip to China; and if he will make a statement on the matter. [6464/05]

Micheál Martin (Cork South Central, Fianna Fail)
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Between 17 and 25 January 2005, I accompanied the Taoiseach on an official visit and trade mission to China. The Ministers for Education and Science, Agriculture and Food and Communications, Marine and Natural Resources also participated. The trade mission was the largest in the history of the State, involving in total 121 Irish companies and educational institutions primarily involved in the ICT, educational services, environmental and engineering services, medical devices and food and drinks sectors.

During the mission, a memorandum of understanding was signed with the Chinese Government concerning mutual co-operation and development in software and a joint statement on education was issued. A protocol concerning the opening of trade in pork was also signed. The total value of contracts signed between Irish suppliers and Chinese customers in the course of the mission totalled €125.8 million. In addition, four Irish companies, Kerry Group, AIL, EPS, PUCA, signed investment contracts worth €46.8 million.

During the trade mission, over 1,800 meetings were held by the Irish participants with potential and existing customers. I expect that these contacts, and the follow-up which the participating companies will undertake, will lead to substantial additional commercial gains in the future.

In Beijing, business agreement contracts to a total value of €38.5 million were signed. In addition, agreements in the education sector to the value of €31.4 million were signed. In Shanghai, business agreement contracts to a total value of €39 million were signed, and additional agreements within the education sector to the value of €6 million were signed. In Hong Kong, business and education sector agreements were signed amounting to €10.9 million in total.

Trade between Ireland and China-Hong Kong is currently worth €4.8 billion a year — an increase of 24% on 2003. The CSO estimates that Irish exports to China in 2004 increased by 9% last year over 2003, from €585 million to €639 million, while exports to Hong Kong increased from €688 million to €833 million. More than 250 Irish companies are currently doing business in China and Hong Kong and many have well-established partnerships and business alliances with local companies.

In the course of the visit, the Taoiseach announced that it is the Government's intention to double the value of trade between Ireland and China by 2010. Based on emerging trends and projections, the Government is confident that this can be realised, or even surpassed. In the interim, all Departments, State and private entities involved will be co-operatively working to that end.