There is likely to be an 11 per cent growth in exports by Irish-owned firms this year, according to the Irish Trade Board (ITB). On a per capita basis the Republic is now the third-largest exporter in the world, after Singapore and Belgium.
The board sees the greatest future expansion in European markets, while it hopes to see a "consolidating of market share in Britain". ITB expects total exports, also including those from multinationals based here, to grow by 9 per cent by the end of the year.
The Republic's trade surplus last year was £7.7 million, says the report, and since 1990 the State's trade surplus has had an average annual increase of about 30 per cent. Mr Sean Murray, ITB chairman, said several companies were seeing their margins tighten as a result of the pound's rate against the deutschmark.
Both Mr Murray and chief executive Mr Oliver Tattan said a revaluation of the pound's central rate in the ERM would not be welcome.
"We would be terrified of the consequences for business with the UK," said Mr Murray.
Figures from the board's annual report, published yesterday, show that 44 per cent of all exports are now to EU markets, while 22 per cent are to Britain.
The figures show exports by Irish firms to America increased by 30 per cent during last year, five times the rate of growth for Britain.
The board expects large increases in the level of exports to Britain throughout this year, with indigenous firms to increase their exports by 13 per cent.
Within Europe the largest reductions in export business has been with France and Germany, while increases have been made in Holland and Belgium.
The report says the results were "achieved in the face of exceptionally competitive international trading and currency conditions and were well above the EU average and also ahead of world trade growth, which was at 4 per cent." The industrial sector increased its export level more than any other sector and the ITB predicts a 12 per cent increase again this year.
Exports of traded services increased by 5 per cent last year and there is an 11 per cent increase predicted for this year.
Mr Tattan said the "added value offered by Irish companies is flexible relationship marketing and they have demonstrated a special flair for this approach".
Mr Murray said talks between the board and the Department of Enterprise, Trade and Employment about future changes to its structure were at an early stage and he had no idea what their outcome might be.
A spokesman for the Department said the talks were part of the Programme for Government which pledged itself to "streamline structures and programmes to help deliver increased competitiveness".
Mr Murray rejected recent comments from the Irish Exporters' Association (IEA) who called for the privatisation of the organisation. He also denied charges that the IDA and the ITB were involved in an "overlap" in industrial policy.
ITB said a system of monitoring overseas offices was now in place. Earlier in the year the IEA said ITB had a "network of costly overseas offices".
