Export trade drops with countries outside EU

Exporters suffered another drop in trade with countries outside the EU in June, according to figures released yesterday by the…

Exporters suffered another drop in trade with countries outside the EU in June, according to figures released yesterday by the Central Statistics Office (CSO).

The seasonally-adjusted numbers show that the value of non-EU exports fell back by 12 per cent between May and June. The decline followed a smaller fall in the previous month.

Exports to locations outside the EU amounted to €2.39 billion in June, down from €2.7 billion in May and €2.5 billion in the same month of 2002.

Seasonally-adjusted volume figures, which strip out the effect of currency fluctuations, confirm the monthly decline, showing that exports dropped by close to 10 per cent in June.

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Annual volume figures are more positive, however, pointing to a 2 per cent rise in non-EU exports when compared to June of the previous year.

The increase, which is not reflected in annual value comparisons, suggests that while overall trade activity may have held up, the strength of the euro and weak international demand have created pricing problems for Irish companies selling abroad.

Exports to countries such as Japan and Canada were particularly weak over the first half. Exports to the US, which accounts for about half of the Republic's total export trade, were flat at €8.6 billion.

Unadjusted figures show that when all non-EU countries are taken as a whole, exports declined in value by 6 per cent to €16.3 billion over the first six months, with most sectors recording a drop.

Computer exports fell back by 15 per cent to €2.5 billion, while export trade in organic chemicals dropped was 6 per cent weaker at €5.1 billion. Exports of pharmaceutical and medical products also declined in value by 6 per cent, falling to €1.6 billion.

The healthiest increase came in essential oils, including those used in the food and drink industries, where non-EU exports soared by 90 per cent to €844 million.

Imports from countries outside the union also flagged over the first half, dropping by 9 per cent to €8.9 billion according to unadjusted numbers. Imports from the US slumped by 26 per cent to €3.3 billion

Úna McCaffrey

Úna McCaffrey

Úna McCaffrey is Digital Features Editor at The Irish Times.