US rules could ‘cripple’ exports

IRISH exports could be crippled by new security measures being introduced at the behest of the US Government in the wake of the September 11 terrorist attacks.

This would happen unless urgent action is taken by the Government, the annual conference of the Irish Ports Association heard in Adare, Co Limerick, yesterday.

Brian Byrne, chief executive of the Shannon Foynes Port Company, said following pressure from the US, the International Maritime Organisation is inaugurating a new security regime which could include fencing off all ports doing business with the US, 24-hour monitoring of harbours and new security arrangements for ships, crews and port staff.

The regulations, designed to prevent the smuggling of weapons of mass destruction by terrorists into the US, are due to come into effect by July 2004.

“Ninety nine per cent of our international trade is carried by sea and unless all concerned can quickly come to terms with the new situation, Irish commercial ports, and with them our manufacturing industry and a large chunk of our agricultural exports, could be faced with paralysis,” warned Mr Byrne.

“Apart from the horrendous cost implications there is the question of a very slow bureaucratic process which involves the appointment of security assessors acceptable to the IMO and the US; clearances from the Department of the Marine and the Government; a tendering process; further official approvals and then the actual work.

“The time span is quite constricted and there is a pressing need for all concerned, Irish exporters; the port companies; the Department of the Marine; the Department of Finance and the Government to come to terms with the urgency of the situation,” said Mr Byrne.

“There are also other aspects to be borne in mind including the difficulty in restricting public access to ports, staff training and the unquantifiable cost of the entire operation,” he said.

Irish exports to the US are already suffering since the economic downturn began three years ago and in August the Irish Exporters Association warned it will be another difficult year for the country’s exporters.

In the first half of the year exports to the US were down by 2% and are expected to fall further.

Exporters have been hit by a rising euro against the dollar and there are warnings of 10,000 job losses in the industry. Economists say it could be 2005 before exports resume growing.

Figures from the Central Statistics Office on Thursday showed the value of Irish exports fell by nearly 20% in the first six months of this year compared with the same period last year.

Exports were worth just under €40 billion, compared with €49.6bn in the first half of 2002. Imports were 23% lower at €23.3bn.

The CSO says a significant fall in the pattern of trade in electrical machinery and parts with Britain have had a large influence on these yearly comparisons.