Work of the Bilateral Trade Promotion Unit

Trade Missions

Each year the Unit coordinates in the region of 15-20 Ministerial-led overseas trade missions. These involve high-level meetings with Ministers and officials, an extensive range of meetings for participant Irish companies 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.

The Unit also coordinates incoming visits by various Ministers and officials from a number of countries throughout the year.

The Unit works closely with Ireland’s industrial development agency, Enterprise Ireland, on trade promotion. 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 March 2010 can be accessed at http://www.entemp.ie/trade/bilateral/trade%20perf%20tables.pdf.

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 (2008), merchandise export countries (2008), services export countries (2008) and a list of the key Euro exchange rates trends 1999 to November 2009.

Merchandise Trade

2009 Statistics

The gradual upward trend of Irish merchandise exports observed since 2003 was reversed in 2009. In 2009, the CSO reported that Irish exports were €83.5 billion and imports were €44.8 billion.

Ireland’s Top 5 Export Destinations 2009 (Merchandise)

USA €17.6 billion;

Belgium €14.5 billion;

United Kingdom €12.3 billion;

Germany €4.8 billion;

France €4.6 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

Ireland’s Top 5 Export Destinations 2008 (Services)

Germany € 6.9 billion

USA €4.9 billion

France €4.9 billion

Italy €4.5 billion

Theses figures reflect the latest country specific figures for 2008, the 2009 figures are not yet available from the CSO.

However the Central Statistics Office has published data on services for the full year of 2009 available as part of their data on Balance of Payments at http://www.cso.ie/releasespublications/documents/economy/current/bop.pdf

This data shows that Ireland’s trade of services for the full year 2009 held steady with exports of €69 billion and imports of €74 billion as compared to the full year 2008.

The website of Forfás, Ireland’s National Economic Development Authority and Advisory Board, 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

New Strategy for Trade, Tourism and Investment

In response to the Smart Economy Framework, the Department of Enterprise, Trade and Innovation is working with the Development Agencies and other relevant Departments to develop a new Strategy for Trade, Tourism and Investment. The new strategy will focus on our existing key trading partners as well as on high growth emerging markets such as Brazil, Russia, India and China (BRIC), and its aim will be to increase our exports/investments in and from these markets. It will also provide guidance and direction as to how to bring further focus and coherence to Ireland’s single-minded pursuit of our international economic and commercial interests by ensuring that the configuration and deployment of available resources will contribute to the maximum possible extent to the efforts of the Irish export sector to continue to grow. This strategy, to be finalized in June 2010, will run for 3-4 years and will be made up of a cross-sectoral set of agreed priorities, objectives and targets and a series of recommended actions, which we believe will enable the Irish export sector to maximise our opportunities as the global recovery picks up speed over the next few years.

This new Strategy will build on the success of the final phase of our Asia Strategy 1999 – 2009, which concluded at the end of last year. 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.

Joint Economic Commissions (JECs)

Joint Economic Commissions are formal Bilateral Intergovernmental fora to deal with trade development in all its aspects, mercantile and services. They serve to further the development of economic and business cooperation, including scientific and technological cooperation and to provide a forum for discussing issues between the two countries involved. They are usually held every two years. This Department administers four existing formal Joint Economic Commissions with Russia, China, Saudi Arabia and South Korea. The 8th session of the Ireland-Saudia Arabia Joint Economic Commission was held on the 10^th June 2010. The next session of the Ireland-Russia Joint Economic Commission, which will be the eighth such meeting, is planned for September 2010.

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 €6.3m has been recovered since 2004.

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, over the last year, insurers have been reducing or withdrawing cover and there has 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 was finalized in April last and 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 are indications that this market is 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 last, that a State-supported scheme of short-term export credit insurance should not be introduced.

EU Commission Groups

We participate in an EU programme to assist certain countries in Central and Eastern Europe and Central Asia, i.e., the Instrument for Pre-Accession Assistance (IPA – formerly PHARE).

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 in May 2008:

The OECD Convention on Combating Bribery (PDF, 1.2MB)

Further information on the OECD Convention and of the wider Irish Government involvement in this process, is explained on www.anticorruption.ie.

OECD Investment Committee

The Unit represents Ireland at the Organisation for Economic Cooperation and Development (OECD) Investment Committee which provides a forum for international cooperation, policy analysis and advice to governments on how best to enhance the positive contribution of investment worldwide. One of the aims of the Committee is to promote implementation of the OECD Guidelines for Multinational Enterprises. These Guidelines 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 for the promotion of these Guidelines. A list of all NCPs is available through the following link: http://www.oecd.org/dataoecd/17/44/1900962.pdf.

Further information is available in the brochure ‘OECD Investment Committee: Promoting Investment for Growth and Sustainable Development Worldwide which can be accessed at http://www.entemp.ie/trade/bilateral/Investment%20Committee%20Brochure.pdf. 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

National Contact Points (NCP)

The OECD Guidelines for Multinational Enterprises (the Guidelines) were first agreed in 1976. They were most recently revised in June 2000 to establish a specific instance procedure which allows for complaints to be brought where companies are not following the Guidelines. The revision in 2000 also committed adhering countries to establishing a National Contact Point to promote the Guidelines and manage the complaints relating to companies registered in or operating from their countries.

NCPs do this by facilitating dialogue and mediating between the two parties. If they consider that the company has breached the Guidelines the NCP will issue a statement saying how, and making recommendations to the company on how it could bring its practices into line with the Guidelines in the future.

Details of all National Contact Points can be accessed through the link below:

http://www.oecd.org/document/60/0,3343,en_2649_34889_1933116_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 contactMs Dympna HayesEmail: Dympna.hayes@deti.ie

Department of Enterprise, Trade and Innovation

Earlsfort Centre

Earlsfort Terrace

Lower Hatch Street

Dublin 2

Last modified: 09/07/2010

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