7th November 2024
The Minister for Enterprise, Trade and Employment, Peter Burke TD, has launched the Report of the Expert Group on Global Value and Supply Chains. The report fulfils one of the key recommendations of our Trade and Investment Strategy 2022-2026: Value for Ireland, Values for the World, which recognised the need for an expert assessment on the outlook for Global Value Chains together with the specific opportunities and risks for Ireland.
Ireland’s success in exporting to global markets is built upon agility and flexibility in responding to changing global circumstances. Over the years, Irish enterprises have successfully leveraged and adapted these strengths to take advantage of shifts in the global economy as new business models emerged and existing sectors evolved. Foreign Direct Investment has deeply embedded Ireland in global value chains, and in turn supported Irish companies to access GVCs, driving productivity and innovation growth.
Speaking at the publication, the Minister highlighted how,
“Over the last year, Ireland’s total trade surpassed one trillion euro, with strong growth in both manufacturing and services. This Expert Report confirms that Ireland’s trading base is hardwired into the global economy, with our exports using significant inputs of goods and services from foreign markets, coupled with significant value-added created domestically. In turn, many of our exports also provide important inputs for other trade partners used to produce goods and services”.
The Minister went on to say that,
“My department is now moving forward to implement the policy recommendations from the Expert Group that were endorsed by the Trade and Investment Council, which I chair, earlier this year. The Council will monitor the implementation of these important initiatives.”
Analysis by the Expert Group of Ireland’s forward and backward participation in GVCs confirms Ireland’s trade partnerships have become more diverse and globalised. It shows a significant change in the composition of where Irish companies source inputs for their exports, indicating a much more diverse and globalised picture, in line with the developing and growing export and FDI base.
The Expert Group recommends important policy actions to enable business to build more resilient supply chains including the need for regular monitoring of trade dependencies; partnering with industry and international partners to stress test supply chains; focused advisory supports to assist companies in their risk assessment; regular stakeholder dialogue; continued advocating for open international markets and ensuring world-class trade facilitation systems.
The Expert Group has also underlined that in order to support effective participation in global value chains, enterprises need continued long-term investment in the innovation system, infrastructure, strategic sectors, leadership and skills, digital capabilities and sustainable production methods in order that companies can remain flexible and agile to the international environment.
ENDS
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