Further growth in exports to the US are threatened by the strong euro, the Irish Exporters Association has said.

In its annual review for 2003, the association said the euro's surge had hit competitiveness.

"A continuation at the current $1.25 to the euro or any further strengthening as forecast by some economists could prove a major stumbling block to continued export growth to the United States," the association said.

The euro's rise of 5.5 per cent against the Japanese yen would have contributed to the significant fall in exports to this "stagnant market", it added.

"The pegging of the Chinese currency to the dollar has accelerated the flood of low-cost goods from China into Europe and the US, presenting Irish exporters with additional price competition over and above the normal product competition," said the review.