The Minister for Agriculture, Mr Walsh, was last night urged by the Irish Exporters' Association to intervene in the dispute which has resulted in a blockade of French ports.
The association's chief executive, Mr John Whelan, said the dispute was potentially extremely damaging to Irish exports to France, the State's fourth-largest export market.
He called on Mr Walsh to immediately contact his colleague in the French government to try to find a resolution to the dispute which has closed the port of Cherbourg, a major entry point for Irish hauliers going to the continent.
Mr Whelan said his association was also calling on the Taoiseach, Mr Ahern, to raise the matter at EU level. "We believe at this stage these blockades have happened too many times and we need to get the EU to agree penalties that will be imposed on the French government if it ever happens again," he said.
"We believe this is the only way the message will get through that this is an unacceptable way to behave in a common market. The French government will have to come up with ways of solving disputes without letting them boil over, affecting other countries. A major concern of ours is that trucks will be blockaded in the ports for several days and perishable goods will be lost as has happened during prior disputes."
He said disruption of the supply chain was also damaging to the reputation of Irish exporters who were prevented from meeting customers' demands on time, not just in France, but also in Germany, Italy and Spain.
The president of the Irish Road Haulage Association, Mr Gerry McMahon, said some delays were being experienced by Irish hauliers travelling to and from France yesterday but the situation was not yet critical.
He said the busiest port for hauliers entering France was Calais, with many Irish hauliers travelling overland through Britain. Those travelling back to Dover in Britain yesterday were rerouted through the port of Zeebrugge in Belgium, which added considerably to their journey, he said.
However, Mr McMahon said his association sympathised with the plight of French farmers, taxi drivers and fishermen who were protesting over the rising cost of fuel. "Hauliers here are experiencing the exact same concerns. Since March 1999 the price of fuel has increased by over 40 per cent in the Republic. That is causing a serious problem at the moment for the transport industry in Ireland.
"This year alone, we in the association know at least 30 hauliers who have gone out of business because of escalating costs. Nobody can absorb a 40 per cent increase in their costs," he said.
The association is preparing a Government submission which will be lodged with the Department of Finance before the end of September and seeks a rebate on fuel costs for hauliers to lessen the impact of price increases.
"The feeling in the haulage industry at the moment is they will be left with no alternative but to take some sort of action if the Government refuses to acknowledge the problem," he said.
A spokesman for the Irish Farmers' Association said even a couple of days' disruption at Cherbourg could cause problems for its members, as this is the peak period for lamb exports to France, and through it, to Holland and Italy. An average of 3,000 tonnes of beef and lamb are exported to those countries every week.
The software industry is also monitoring the situation, the Irish Software Association confirmed. If the blockades continue and disrupt supply routes for the import and export of software, members would look at other avenues such as transporting product by air, a spokeswoman said.