A review aimed at tightening controls on military exports from the Republic is due to be completed within the next few weeks.
The Forfás-commissioned study was undertaken to ensure that controls on arms exports from the State were up to international standards.
Preliminary findings issued in August, however, suggested that Ireland could unwittingly become a centre for the international arms trade.
A recent tightening of British legislation could result in UK-based arms brokers moving here to take advantage of gaps in Irish export controls, the report found. They could then use Ireland as a base to set up arms deals between rogue states, it said.
The preliminary study, by economic consultants Fitzpatrick Associates, showed that the Republic exported more arms per capita than Luxembourg, Spain, Portugal, Finland and Greece between 2000 and 2001.
Irish firms exported €34.4 million worth of arms in 2002 and a further €4.6 billion of dual-use goods (components used for military or civilian purposes).
Dual-use goods include software, telecoms equipment and chemicals, while Irish military exports include suspension systems for tanks and army vehicles.
Work on the report began shortly after concerns were expressed by pressure groups, such as Amnesty, that many Irish-based firms were providing components to the US military and its nuclear industry.
Since the initial findings were published in August, a more detailed review of controls by the same consultants has been taking place.
A public consultation process has been completed, and the review should be finalised "in the coming weeks", according to the Minister of State for Trade and Commerce, Mr Michael Ahern.
In reply to a written Dáil question on the matter from Mr Seán Ryan TD (Labour) the Minister said there was an increasing international focus on the necessity of strengthening export controls on military and dual-use goods.
The review had been undertaken to ensure current controls were modernised and strengthened, and Ireland met its international obligations.
The initial consultancy findings questioned the Government's current policy statement on military exports, which maintains that the Republic "is not a producer of arms in the normal sense".
This was "arguably an unnecessary and challengeable statement on a sensitive topic", said the report. Irish exports of military goods were small but they did exist, it said.
