Press Release

23^rd June 2009

Ireland’s biggest customer, Europe - key to the future of the economy says IEA

Trade Facilitation Gold Medal Awarded to Sean Dorgan

At the Irish Exporters Association’s (IEA) annual President’s Lunch, sponsored by HSBC Corporate Banking, (Tuesday, 23 June 2009) the importance of Europe as the number one market for Irish goods and services was top of the agenda as President of the Association, Mr Liam Shanahan, outlined why success in Europe is vital for the economic wellbeing of Ireland.

Launching a new brochure called "It’s Europe, It’s Exports", Mr. Shanahan said a recent survey of its members revealed that 96% of them believed that membership of the EU was important to their business. In the same survey members said they relied on exports for 70% of their turnover in the past 12 months and had relied on European customers alone for over 40% of their turnover.

Mr. Shanahan said: "There is an important story to tell about Irish exports. At the centre of that story is Europe, Ireland’s biggest customer and the source of much of our nation’s growth over the past 30 years. The engine of Ireland’s economic recovery depends on exports and foreign direct investment".

"In Ireland, we export 80% of what we produce and Europe, excluding the UK, buys close to half of it. Half of almost every product and service produced in Ireland is purchased and paid for by our European customers."

"Our exports have grown over 100 fold since we joined the EU and foreign direct investment has increased 1800 times since then. US investors and job creators who see Ireland as an English speaking gateway to Europe have invested more in this country than they have in Brazil, China, India and Russia combined.

"Line workers, warehouse managers, and shipping clerks; truck drivers, technical teams and research specialists, from Cavan to Cork and from Donegal to Dublin do business with Europe every day. European customers are the lifeblood of Irish exporters. For businesses and workers, Europe means we still have a future."

"However, it is vital that we move quickly and credibly to restore our competitiveness and rebuild our commitment to growing our export sector. This calls for serious policies that will restore competitiveness and over the medium term provide the platform for realising new growth potential."

Mr. Shanahan noted that his optimism for continued growth is based on the first-hand experiences of exporters who have recognised that many of the newer entrants are actively looking to expand their trade, as the standard of living of these economies grow. "Europe is an open market but others will be chasing that market too", he added.

Commenting on the forthcoming vote on Lisbon Mr Shanahan said: "It is my firm belief and that of the IEA that Ireland has benefited greatly from being in Europe. I hope that the story of Irish exports to an expanding Europe will become the story of Ireland’s success again. I hope it will give us a new confidence in Ireland’s future, a confidence that will be expressed when we vote on Lisbon this autumn. I believe our vote on Lisbon is about saying yes to the future and yes to what is possible for Ireland and its people".

Trade Facilitation Gold Medal 2009

The IEA has for many years being promoting Trade Facilitation, which has at its aim the simplification of international trading rules, the elimination of duplication and reduction in red tape in international trade. At the lunch the IEA awarded its Trade Facilitation Gold Medal 2009 to Mr Sean Dorgan, former CEO of IDA Ireland, for his unstinting work in seeking to make international trade easier and less cumbersome. Speaking at the lunch Mr Dorgan echoed many of the same sentiments as Mr Shanahan.

In accepting the Gold Medal, Mr Dorgan said that the importance to Ireland of investment and exports, and the threats posed by the current global recession, are both essential reasons for supporting the Lisbon Treaty. He said: "The moment of the worst earthquake in our lifetimes is not the time to detach from the strongest structure surrounding us, protecting our current base and providing shelter for our future prospects. At a time when recession and signs of economic nationalism threaten jobs internationally, we would be mad to isolate ourselves from the centre of the EU, the best bastion to support trade and economic success."

He said that 80% of Ireland’s output is exported which made the country critically dependent on continued openness of international trade. He noted that while some countries are flirting with economic nationalism, taunting the lessons of history, the EU remains the strongest defender of open markets, both within Europe and globally. "The consistent policies and growth of the EU laid the foundation for the growth of the Irish food and other indigenous businesses and for inward investment by global companies. Europe’s success is still critical to us," said Mr Dorgan.

Mr Dorgan continued: "We have been reminded in the past year how much perceptions matter, in business as in politics and international relations. Business values certainty and confidence; Ireland has provided that through its consistent policies and its place in Europe. Any failure to maintain that, especially in a time of heightened uncertainty and intensified competition, would be gravely damaging." He added that Europe had been fundamental to Ireland’s success in his working life noting that since Ireland joined the EEC in 1973, our GDP has increased 50-fold in real terms, our exports more than 100-fold and our inward direct investment more than 1,800-fold. As well as this economic measure of the value of the EU to us, think of the social and human dimensions and how our confidence and self-worth grew," Mr Dorgan said.

"The negative vote on the Lisbon Treaty last year has, however, damaged Ireland’s impact," said Mr Dorgan. "It is a situation that we must repair because we need to be listened to and heard when discussions are taking place at the heart of Europe. Because we are relatively small and so trade-dependent, our economic prospects are tied to an intimate and central involvement in the EU. We cannot afford to isolate ourselves from the consensus that has been agreed, with our own input, on the future of Europe."

He concluded by saying that the last Lisbon vote was clouded by misinformation and misunderstanding. "We cannot let that happen again – the times are too dangerous and the risks too great. Although the Treaty is a complex legal document, its purpose is straightforward – to improve the way in which the EU and its institutions work. The Irish government played a key role in developing the proposals and they do not offend or damage our national interests in any way. All of Ireland’s experiences since 1973 support the view that we can hold our own in Europe. We have nothing to fear from what is in the Lisbon Treaty."

Mr Shanahan thanked Mr Dorgan for his work over the years in facilitating trade from Ireland and presented him with the Gold medal.

END

For further info:

John Whelan,

CEO of the Irish Exporters Association

Tel: + 353 87 9271243

Email: jfwhelan@irishexporters.ie