China set to be Ireland’s fourth largest export market
In Cork yesterday to launch this year’s programme of events for the Asia Trade Forum, IEA vice president and forum chairman Hugh Kelly said that looking to eastern markets is imperative for Irish exporting firms.
He added that Irish exports to China alone are likely to grow by 11% per year up to 2030; with similar growth rates expected to countries such as India, Indonesia, Vietnam and Malaysia.
“By 2017, China is projected to overtake the US as the largest economy in purchasing power parity terms, and by 2050 India is set to become the third largest economy in the world after China and the US,” he said.
According to Mr Kelly, growth in eastern Asian markets should fuel demand for more sophisticated products.
He added that rising labour costs in countries such as China should also play into the hands of Irish companies as new, low-cost manufacturing centres will emerge.
These centres, according to Mr Kelly, “will drive changes in trade patterns, and manufacturing companies in the more developed Asian economies will be obliged to move up the value chain and new partnership opportunities will present themselves for Ireland”.
He said Ireland should try and exploit its “deserved reputation” as an international leader in the areas of ICT, farm and food technology, chemicals, pharmaceuticals and medical devices.
The Asia Trade Forum — which comprises Irish exporters looking to share their expertise with other foreign-focused firms — will hold seminars and workshops around the country this year, as well as making business visits to Asian countries.
Its chief aim is for Ireland to emerge as one of Asia’s preferred trading partners inside the EU and it has set a target of a doubling, to 8%, of Ireland’s exports to Asia over the next five years.
“We want to celebrate and build on the success, in 2012, of a modest increase in Irish trade with China, but nevertheless an increase that was achieved while total EU trade with China dropped by 3%,” Mr Kelly said.
