Forfas has urged Irish voters to vote 'yes' in the upcoming referendum on the Nice Treaty.
Speaking at the launch of Forfas's annual report this morning, chief executive of Forfas Mr Martin Cronin, said a No vote would send the message to business communities around the world that Ireland was not confident enough to compete in an open market.
"The proposed enlargement of the EU offers both opportunities and challenges," he said.
"We are well placed to continue growing in an enlarged Europe with our strong base of modern business activities and successful companies.
"Ireland's economic growth has been based primarily on a consistent commitment to international markets and trade since the 1960's.
"Were we to opt out of the enlargement process it would be a clear signal to international business that we are not fully committed to international trade, and not confident of our ability to prosper in an open market environment.
"This would create greater challenges for us than those of EU enlargement," he said.