2007
Press Release
Tuesday 18 December 2007
Exporters launch a new Strategy for Asia/Pacific,
and warn we are losing out heavily in the region - in exports, investments and outsourcing opportunities.
The Irish Exporters Association launched its Asia/Pacific Strategy 2008 - 2010 in Dublin today (18 December 2007) at a reception in Dun Laoghaire.
According to Mr. Liam Shanahan, Chairman of the Irish Exporters Association’s Asia Trade Forum, Ireland’s recent performance in merchandise exports and Foreign Direct Investment (FDI) has been sliding at an alarming rate.
On Merchandise Exports he said;
· “For seven years from 1997 Irish merchandise exports to Asia increased by 99% but in the last three years merchandise exports to Asia only increased by 1.5%.”
· “This represents a serious loss in market share in Asia, as the Asia market has been growing by just under 14% in recent years.”
On Foreign Direct Investment he had this to say;
· “Foreign Direct Investment (FDI) flows into Ireland have been on a reducing trend each year for the past 3 years. This was particularly worrying as global FDI flows had increased by one third in 2006, rising to an all time high of $1.23 trillion’’.
· “Double Taxation Agreements are essential to efficient international capital flows’’ he pointed out. “A priority measure must be the early completion of Double Taxation Agreements under discussion with Singapore and Thailand, and the immediate opening of discussions with Hong Kong, Indonesia and Taiwan’’. In particular, he stressed the need for the Dept. of Enterprise Trade and Employment to commence negotiations with the Hong Kong officials at an early stage, as much of the FDI from China is facilitated through Hong Kong.
He had, however, a more positive outlook on services exports;
· “Thankfully, we have a somewhat different and, indeed, rosier picture when it comes to services exports.” He said that globally, trade in services has been growing slightly slower, than trade in goods. “That has not been the experience in Ireland as our growth in services exports for the past three years has been substantially ahead of world trade growth, increasing on average 45% faster than world services trade. Ireland is now ranked twelfth in the global table of services exporters, with exports of 68 billion US dollars, or 2.5% of total global trade”.
In the Irish Exporters Association New Strategy for Asia Pacific 2008-2010 the Association is calling for a refocusing of effort to play to our strengths and to remind ourselves of the new business world we are now operating in, and in particular the new, dynamic Asia Pacific commercial environment we are encountering.
A core element of the Irish Exporters Association’s Asia Pacific strategy for 2008-2010, is the need to enhance new structures between business and the state. “We urge full utilisation of the network of embassies – both Irish embassies abroad and foreign embassies in Ireland. We also urge that full use be made of the excellent Enterprise Ireland and IDA networks abroad as well as full use of Irish-Asia business networks, both at home and abroad. Irish business needs to partner with Asian business in order to be globally competitive.”
He noted that Enterprise Ireland and IDA’s networks in Asia need to be more fully utilised by business, and where possible, more in-country specialists should be implanted. He also highlighted the need for better mechanisms for sharing intelligence between business and the agencies.
The Irish Exporters Association proposes to make its own contribution to the intelligence sharing process. It currently has directors in China, India and Japan and is now adding directors in Australia, Indonesia, Malaysia, Singapore, South Korea, Taiwan and Thailand.
The Irish Exporters Association, as part of its Asia Pacific Strategy, also announced that it has appointed specialist partners to assist business with investment decisions in Asia. Ulster Bank, with its RBS connections throughout Asia, has come on board as the banking partner to the Strategy and PWC, through its China desk, will now be the tax advisory partner. Mr. Shanahan added that other partners will be added to support the key advisory activity involved with Asia/Pacific trading, as part of the Association’s Strategy for Asia/Pacific.
Mr. Shanahan said that the close cultural and business ties between Ireland and Australia will also be utilised to help develop business throughout the Asia/Pacific area. “We are aware of the development of strong business ties between Australia and Asia, particularly China, and we believe that we can, working closely with Australian businesses, develop successful joint-venture capital projects in Asia.”
Mr Shanahan added that investment into Ireland has been the main driver of our economic growth for the past few decades. Outward Direct Investment (ODI) is a more recent phenomenon, but the vast majority of Irish ODIs going to the UK, Europe and the US. Very little of Ireland’s ODI is currently going to Asia. New structures and new networks are needed so Irish businesses can make sensible decisions about where and with whom they collaborate. “Only through better mapping of the opportunities for ODI into Asia will Irish businesses be able to target investments into this rapidly growing market successfully,” he said.
Mr. Shanahan concluded by quoting Confucius: ‘Go out on a limb, that’s where the fruit is.’ “The Irish Exporters Association believes that, with the right advice and more pro-active assistance from the state sector, Irish companies can regain the initiative in Asia and take it’s full share of the rapidly growing Asia/Pacific dynamo of world trade.”
ENDS
For further information contact:
John F. Whelan
Chief Executive, Irish Exporters Association
Mobile: 087 927 1243
Email: jfwhelan@irishexporters.ie
About the Irish Exporters Association (IEA)
The IEA represents the needs of export industry ensuring that the necessary conditions are created and the necessary support is provided to assist companies to maximise their export sales. The IEA draws its membership from every exporting sector, ensuring that the interests of all industries are represented and promoted at the highest level.
www.irishexporters.ie
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