Reform of trade procedures would save Ireland billions

Irish companies could collectively save billions of pounds every year if international trade procedures were simplified and harmonised through trade facilitation, according to a new report issued by the Institute of International Trade of Ireland. The report forms part of the Institute's campaign to heighten Irish business awareness of international trade issues in advance of the next round of World Trade Organisation (WTO) negotiations, expected to get off the ground in Qatar in November this year.

According to Sir George Quigley, president of the trade institute, the Republic, as an exceptionally open economy, has more interest than most in ensuring that the focus of the next WTO round is on trade facilitation.

"This has tremendous implications for Ireland," said Sir George yesterday. "Ireland's export performance is extremely formidable, and despite a few glitches here and there, should remain so." The report has found that the Republic's exports amounted to £65 billion (€82.5 billion) in 2000, while imports stood at £43 billion.

The key benefits in harmonising procedures such as documentation, customs clearance and port processes would come in cheaper and more efficient access to international markets, particularly in Asia. This will become particularly significant in coming years, as the currently emerging Chinese and Indian markets take on more prominence, according to Sir George.

"They're going to be world players," he said. "Ireland has got to get large shares of those markets." He believes that the real danger for the Republic comes in Irish business not being sufficiently aware of the importance of trade rules.

"For Ireland in particular where trade is the lifeblood of the economy, it's absolutely crucial that everything possible can be done," he said. "You can regard this as a rather esoteric, technical area, but it's really part and parcel of doing business."

The agreements emanating from the expected upcoming WTO negotiations will replace the General Agreement on Trade and Tariffs (GATT) rules that were agreed in Uruguay in 1994 and are due to expire in at the end of 2004. The Republic will be represented by the EU at the negotiations and it is expected that both the EU and the US will promote the trade facilitation line. Any agreement reached must be based on broad consensus, however, and not all countries represented will be in agreement with the large western blocs. According to Sir George, issues such as the cost of upgrading technology to meet harmonised procedures may be enough to put some nations off the trade facilitation approach.

To promote awareness of international trade issues, the Minister of State for Trade, Mr Tom Kitt, has launched www.openmarkets.ie, a website designed to allow Irish industrialists and exporters to voice their opinions on the multilateral trade issues up for discussion at the November meeting. The site will remain open until October 19th.