2008
27 May 2008
Irish Services, not Agriculture, are the most critical part of the World Trade Talks for economic and export growth
Following last weeks publication of the revised negotiation texts on Agriculture and Industrial Products, the Irish Exporters Association (IEA) today called for a rapid conclusion of these elements of the WTO Doha Round negotiations. The IEA also called for a focus on the conclusion of the Services Industry negotiations.
John Whelan, Chief Executive of the IEA stated at the release of the IEA’s World Trade Doha Round Talks Strategy for the Irish Export Industry:
“Regardless of the Agriculture negotiations outcome, the Doha Round will need to deliver on the Services Industry liberalisation if the Irish economy is to continue to flourish.”
In their statement, the IEA point to the recent release of global trade figures for 2007, which show Ireland is now the 10th largest exporter of services internationally, with exports of 64.8 billion euro. Irish services grew by 18% in 2007, which moved Ireland’s position in terms of world ranking from 12th position in 2006 to the 10th largest services exporter. This, the IEA state, was achieved on the back of the last successful WTO Trade Uruguay negotiation, which went a long way to liberalise cross-border services trade.
The IEA statement points out ;
· World Trade in Services has been growing faster than goods trade for the past decade. Irish Services exports have increased 10 fold in the decade, whereas Merchandise trade has increased 2.5 fold.
· Services trade now accounts for 68% of global GDP and approximately 73% of Irish GDP.
· Services Trade accounts for 68% of Irish employment.
· Globally, more than half of the annual Foreign Direct Investment flows are now in Services, and Ireland has been getting an increasing share of this in recent years.
· Irish Services exports to the USA have doubled in the past two years.
· Irish exports of Financial Services to Central America and Asia increased by approximately 50% in the past two years.
John Whelan went on to state;
“Given the size of the Services economy and the rapid advancement of technology, the gains obtained from a further opening of trade in Services will far exceed those obtained from an opening of trade in Goods. This is precisely why we must ensure the Services Negotiations are now put centre stage at the Doha World Trade Talks.”
“Indeed,” he further stated, “I would go as far to say that we need Services liberalisation to help realise the economic gains from trade and to amplify whatever market access might be achieved through the Agriculture and Industrial Products negotiations.”
In conclusion, Mr Whelan stated,
“We are living through a period of global uncertainty and apprehension, affecting both developing and developed countries. The temptation to resist change is high, particularly as the voices clamouring for protection tend to shout louder than those supportive of further opening of markets. But it must be clear that change and opening of markets, especially Services trade, are the bedrock upon which Irish exports and the Irish economy have flourished over the past two decades.
The key to future long term growth of the Irish economy lies in further market access for our Services and Products and we cannot hope to achieve this if our global trading partners take a protectionist stance.’’
END
For further information, contact;
John Whelan, Irish Exporters Association
Tel: + 353 1 661 2182
Mob: 087 927 1243
Email: iea@irishexporters.org
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.
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