An agreement to promote strategic alliances between Irish and American companies has been signed by the chief executive of Enterprise Ireland, Mr Dan Flinter, and the head of the United States Small Business Administration, Ms Aida Alvarez.

Ms Alvarez, who is part of President Clinton's cabinet, said the current US/Ireland business partnership programme, which is being updated by the new agreement, has already helped 50 strategic alliances to take place between Irish and American companies.

The new agreement, known as the External Co-operative Agreement, runs into the next century and is mainly designed for small and medium enterprises.

The Tanaiste, Ms Harney, said she expected 15 partnership deals to be agreed before the end of the year.

The original partnership programme was announced by President Clinton at the White House Conference for Trade and Investment in Ireland, held in Washington in May 1995.

The strategic alliances are designed for Irish companies which want to reach the American market with an American partner or who just want a trading partner.

American companies looking to do the same thing are able to set up an alliance with an Irish company under the programme.

Ms Alvarez said the US/Ireland agreement is the first overseas partnership mission undertaken by the US Small Business Administration, which has $45 billion of loans at its disposal for small business. Ms Alvarez said the US Small Business Administration chose to work with the Republic because of its strong economy, its leading role in Europe and its advanced telecommunications infrastructure.

Mr Flinter said the main benefit was that new market opportunities will be created for companies who might "otherwise find the prospect daunting and the cost/risk ratio prohibitive".

Some 21 American companies have representatives accompanying the Small Business Administration's trip, and a visit to Belfast is also scheduled.