Written answers

Tuesday, 25 October 2016

Department of Foreign Affairs and Trade

Trade Relations

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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351. To ask the Minister for Foreign Affairs and Trade the extent to which new trading links can be established globally; the extent to which it is expected that Ireland can benefit from such developments in the future; and if he will make a statement on the matter. [32089/16]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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358. To ask the Minister for Foreign Affairs and Trade the extent to which the various Irish embassies or consulates throughout the EU and worldwide continue to be used as a means of promoting this country and establishing new trade contacts; and if he will make a statement on the matter. [32098/16]

Photo of Charles FlanaganCharles Flanagan (Laois, Fine Gael)
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I propose to take Questions Nos. 351 and 358 together.

Advancing Ireland's trade, tourism, education and investment objectives through economic diplomacy and related activities is a key goal Ireland's foreign policy, informing and directing the work of the Department of Foreign Affairs and Trade and our mission network.

The mission network comprises eighty embassies, consulates and multilateral offices. They play crucial roles in supporting Irish businesses to grow overseas, in promoting our wider trade interests including through EU and WTO regulation; in addressing market access issues; in underpinning the work of our State agencies and in supporting Ministerial visits and trade missions.

In the evolving global economic and trading environment, and against the backdrop of the British vote to leave the EU, it is essential that our mission network is equipped to adapt and evolves to meet new challenges and exploit new opportunities for Irish trade. We also need to ensure that the network continues to be appropriately equipped and resourced to support Ireland's economic objectives overseas.

It is increasingly important that our work both at HQ and abroad is strategically focused and closely co-ordinated as a whole-of-government exercise. Guided by the Government's Trade, Tourism and Investment Strategy, launched in 2010 and reviewed in 2014, new Embassies have been opened since 2014 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 has strengthened Ireland's capacity to take advantage of emerging market opportunities.

With a view to further augmenting the economic work of my Department and our Embassy network, I launched a new Economic Diplomacy Strategy in January 2016. A central element of the Strategy is the establishment of a network of locally-hired Commercial Attachés to extend the range and impact of our embassies' trade activities. Locally hired Commercial Attachés are being appointed initially on a pilot basis in our embassies in Mexico, Brasilia, Buenos Aires, Bucharest, and Jakarta and consideration will be given to the potential for similar appointments in other locations in the future. In addition, provision has already been made for the appointment of an Economic Development Officer (EDO) in Abuja, funded from the Irish Aid budget, whose role is analogous to that of a Commercial Attaché.

Within the context of our already very successful Local Market Teams in key markets, this initiative will equip Embassies to open additional business links and networks for Ireland's exporters, complementing and aligning with the work undertaken by the State agencies and their networks overseas.

All efforts by Embassies and Local Market Teams abroad to take advantage of new opportunities for Irish business in key markets will continue to be guided here at home by the work of the Trade Division within my Department and by the Export Trade Council, which I chair. The Export Trade Council met most recently on 18 October when there was a particular focus on the Asia Pacific region. Total exports of goods and services from Ireland to the Asia Pacific region exceeded €20 billion in 2014 and there is great potential for future growth in exports and investment links. The Programme for Partnership Government mandated whole-of-Government cross-sectoral strategies for the Asia Pacific and Americas regions. Work on the formulation of these strategies is well underway.

Work is also in hand, in partnership with the Department for Jobs, Enterprise and Innovation and other stakeholders, on accelerating the formulation of the successor policy to the Trade, Tourism and Investment Strategy.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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352. To ask the Minister for Foreign Affairs and Trade the extent to which Ireland’s trade with various European countries throughout the European Union continues to grow; the way in which this compares with other countries globally; and if he will make a statement on the matter. [32090/16]

Photo of Charles FlanaganCharles Flanagan (Laois, Fine Gael)
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My Department, working through our diplomatic missions abroad, takes its trade promotion role very seriously. Our Embassies and Consulates take every opportunity to promote Irish business abroad, conscious that trade is a key driver of the Irish economy.

Ireland's merchandise trade continues to grow. Last year it reached more than €182 billion, the highest figure ever. The European Union is our largest trading partner, accounting for about 56% of total trade, of which the UK last year accounted for 26% of exports and 44% of imports; Germany 13% of exports and 14% of imports; and Belgium 24% of exports and 3% of imports. And trade with the EU is growing. Last year, the value of total trade (imports and exports) with the EU reached more than €101 billion.

Ireland's services exports and imports to EU countries have also grown significantly in recent years. There was a slight decline in the value of services exports and imports immediately following 2008, but subsequent years have shown growth, particularly in services exports. Services exports to the EU-27 grew by 13% between 2013 and 2014, exceeding growth in services exports to North America, Africa and Asia.

Other major trade partners are the United States (23 percent of exports and 12 percent of imports) and China. Trade with NAFTA countries (US, Canada and Mexico) has been growing strongly over the past decade with the value of imports and exports combined up approximately 61%.

As Minister for Foreign Affairs and Trade, I am determined to lead the Government's efforts to diversify and open up our exports globally. This is critical to Ireland's economic success, but takes on a renewed importance in light of the UK's decision to leave the EU.

Last week, I chaired the 13th meeting of the Export Trade Council, which focussed in particular on the high potential of the Asia Pacific region. We also discussed the challenges and opportunities for Irish export trade following the UK decision to leave the European Union

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