Bernard Durkan (Kildare North, Fine Gael)
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391. To ask the Minister for Foreign Affairs and Trade the extent to which he and his Department hope to be in a position to pursue and secure new markets for Irish exports with particular reference to the challenges arising from Brexit; if he expects to utilise a multi-facetted approach in this endeavour regardless of deadlines associated with Brexit; and if he will make a statement on the matter. [24322/16]

Charles Flanagan (Laois, Fine Gael)
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A number of challenges and uncertainties lie ahead given the outcome of the UK Referendum on EU Membership, not least insofar as our trading relationships are concerned. Whatever shape new trade arrangements emerging from a UK exit from the European Union might take, the deep-rooted and longstanding economic relationship between Ireland and the UK will undoubtedly remain important to us. At the same time, it is important to recognise that Ireland has long been working to deepen its market penetration and market diversification, a strategy that can only continue to reap significant dividends in terms of safeguarding our long-term economic prosperity.

For example, while growing in volume terms, the percentage of exports to the UK as a percentage of total global exports has declined over the period 2005 to 2015; the majority of Irish services and merchandise exports are, in fact, to the European and US markets. This trend is consistent with the ambition outlined in the Government’s Enterprise 2025 Strategy, setting as a target a 50% increase in exports to non-UK markets.

While we must and will continue to cultivate these more traditional markets, the Government recognises that ongoing and indeed intensified market diversification is crucial for Ireland’s long term economic resilience.

Currently, Local Market Teams are chaired by the relevant Ambassador in our twenty-seven priority markets. They comprise the representatives of the Embassy and relevant State agencies. These teams submit annual market plans as well as six-monthly reports of activity. In the course of a 2014 review of the Trade, Tourism and Investment Strategy, seven additional high-potential and exploratory markets were identified to increase our engagement with high-growth markets in Asia, Latin America and Africa.

Guided by this, new Embassies have been opened in Bangkok (Thailand), Jakarta (Indonesia), Nairobi (Kenya) and Zagreb (Croatia) as well as Consulates-General in Hong Kong (China), Austin (Texas, USA) and Sao Paulo (Brazil). The opening of these new Embassies and Consulates strengthens Ireland’s capacity to take advantage of emerging market opportunities.

In January this year, I launched an Economic Diplomacy Strategy that seeks to build on the consolidation of the Department’s trade role in recent years by establishing a network of locally hired Commercial Attachés to extend the range and impact of our Embassies’ activities in support of trade. Our Embassies in Mexico, Brasilia, Buenos Aires, Bucharest, and Jakarta have all provided a firm and immediate basis for the appointment of a locally hired, term-limited, Commercial Attaché and it is proposed to appoint such officers to these locations in the coming months. In addition, provision is already made for the appointment of an Economic Development Officer (EDO) in Abuja, funded from the Irish Aid budget, whose role would be analogous to that of a Commercial Attaché. There is potential to make similar appointments in other locations.

Within the context of our already very successful Local Market Teams, this initiative will equip Embassies with the resources and autonomy to become active and open business hubs for Ireland’s exporters, thereby strengthening the work of promoting Irish business undertaken by the State agencies and their networks overseas.

Through our Mission network, the Department will also be supporting Enterprise Ireland’s international trade mission schedule for the rest of 2016, to include trade missions to Northern Europe, USA, China, India and other high-growth markets. With regard to the UK Referendum in particular, IDA Ireland is liaising directly with its 1200+ client companies and potential investors in order to work with them on the implications of the result in order to identify new opportunities for Ireland in certain sectors, many of which already form part of the IDA’s marketing strategy.

Building on impressive growth in the agri-food sector, our Mission network also supports the opening of new markets for Irish food and food products, which is of critical importance and plays a key role in helping to achieve the sustainable growth targets set out in the Food Wise 2025 industry development strategy. This strategy includes overall growth projections for the agri-food sector for the next decade, including an increase in exports of 85% to €19 billion by 2025. Exports in this sector in 2014 amounted to €10.45 billion. Non-EU markets accounted for 28% of total Irish agri-food exports that year, with significant potential for further growth. These new markets, with growing middle class populations and increasing levels of disposable income, will provide significant growth opportunities for Ireland’s agri-food and drinks sectors in the coming years.

All of these efforts by our Embassies and Local Market Teams abroad will be guided by the Export Trade Council, which I chair, and the associated parent Departments, including Trade Division within my Department. In the period leading up to the Referendum, I consulted with the Export Trade Council on a number of occasions and convened a further meeting only yesterday, at which Government Ministers, State agency heads and private sector representatives with proven business expertise had a productive discussion of the strategy and tactics outlined above, reaffirming market diversification as a key mitigating factor in alleviating Ireland’s exposure to economic uncertainty.

Furthermore, it has been decided that the formulation of a new successor policy to the Trade, Tourism and Investment Strategy will be accelerated. “Trading Better”will set out a coherent medium term plan to enhance and improve how we support Irish exports and investment.