Figures published yesterday confirm the US is emerging as Ireland's largest export market. The revelation that Britain is no longer Ireland's main trading partner came on the same day as Forfas warned Irish prosperity was now dependant on healthy US-EU trade and investment. The State trade agency also warned that Ireland was now more vulnerable than any other euro-zone state to fluctuations in the euro against the dollar and sterling.

Sales of Irish manufactured goods to the US in the 12 months to October totalled £10.9 billion, accounting for more than half of all exports to non-EU countries. Figures for exports to Britain - traditionally the largest market for Irish goods - are not yet available for October, but August data showed the US has now outstripped Britain.

"While Ireland accounts for only 1 per cent of total EU economic activity, Irish-US trade makes up over 5 per cent of total merchandise trade between the EU and the United States," according to Forfas. Ireland's share of transatlantic trade is significantly larger that that of Belgium, Spain, the Netherlands and Sweden.

Ireland is becoming a "hub" for a fast-growing transatlantic market in industrial goods, according to the State agency.

Ireland's strong dependence on the US and British markets leave it "more vulnerable than any other euro participant to fluctuations in the external value of the euro, particularly against sterling and the dollar," argues the report. Exports to non-EU countries in October were up 94 per cent on the previous October to £2.8 billion, while on an annual basis they were £21.4 billion, up 47 per cent.

Imports in October were £1.5 billion - compared to £1.2 billion last October. The 12-month figure for imports was £13.6 billion - a rise of 24 per cent.