Anti-terrorism measures being taken by states around the world could add up to 3 per cent to the cost of international trade, a conference of exporters in Dublin was told yesterday.
The warning was given during an address to the conference of Irish exporters by Mr Jack Short, secretary general of the European Council of Ministers of Transport (ECMT) - a think-tank that advises transport ministries in 42 European countries.
"Their assessment is that all the anti-terrorism measures will cost trade 1 to 3 per cent of total export volumes," said Mr John Whelan, chief executive of the Irish Exporters Association (IEA).
Exporters will have to bear the brunt of these measures over the next six or nine months as more stringent restrictions are put in place in an effort to combat terrorism, according to Mr Whelan.
This would represent a "significant lurch backwards" for international trade, he said.
The association reiterated its call for the introduction of export credit insurance to protect companies trading in the Middle East against any losses caused by the conflict there.
Irish companies export a range of products to the region, including food, pharmaceuticals, electronics and software. The main markets for these products are in Saudi Arabia, the United Arab Emirates, Egypt, Jordan, Sudan and Syria.
So far, there is little evidence to suggest these companies have been affected by the war in Iraq.
"In terms of actually shipping products to our customers there, that has not changed," according to Mr Pat Ward, marketing manager with the Irish Dairy Board, which exports milk, cheese and other dairy products to several countries in the region.
However, the company's Irish employees have put plans to travel to the area on hold until the situation is resolved.
Speaking at the conference, the Minister of State at the Department of Enterprise, Trade and Employment, Mr Michael Ahern, stressed the need for co-operation between the EU and the United States in developing appropriate security measures.
Yesterday's conference, entitled "Trade facilitation 2003", was organised by the IEA to examine the impact of new customs and security regulations on Irish and global supply chains.
