Clothing manufacturers from the Republic have set out to cut a dash through the North's fashion industry with the first ever Bord Trachtala fashion trade mission over the border.

Some 14 companies are taking part in the two-day event at Belfast's Europa Hotel, which is targeting the independent retail sector, worth more than £110 million per annum.

German imports currently account for about half of all sales in this sector.

The irony is that while Southern companies have been extremely successful in Britain, they have failed to exploit the potential of the Northern market.

"One statistic from our database is that we have 500 Irish companies doing £500 million worth of business in Britain but doing nothing or next to nothing in the North," said Mr Donald Black, An Bord Trachtala's

Northern Ireland manager. He said this was the main reason the Bord had recently opened an office in Belfast. "There is no good reason for it. It is just historical," he said.

The violence of the past 28 years has undoubtedly been a major factor.

Mr Rory McGurk, attending the fair as an agent for Michel Ambers, said: "The centre of Belfast and a lot of other towns are closed off to traffic, which means it's difficult to get access to the shops. And there are times when you wouldn't want to bring a southern registered van over the border." However, he shared the view with others attending the fair that business in the North could at least be doubled.

Mr Eamon McLaughlin of Kilkenny-based Chesneau Leather Goods, one of the accessory companies at the fair, said the time was now right. "This is the first time we have ever tried to do business in the North, but we expect to do very well. The timing is perfect - we will be in time for the Christmas market and there is the feel-good factor after the ceasefire."

The strength of sterling should also give Southern goods a competitive edge, but Mr Black believes it will not be a deciding factor in the fashion industry where stock is bought seasons ahead. "These suppliers are competitive anyway and they have already been very successful in Britain," he said.

Overall the value of exports from the Republic to the North is in excess of £800 million a year, and grew by 5 per cent last year. Mr Black said Southern companies were increasing their market share and he believed there were particular opportunities in the fashion sector.

"The independent retail market in the North is growing. They are starting to fight back against the multiples and the chain stores, and there are a large number of Irish branded clothes suppliers who can compete with the best European suppliers, and they can do it here in their own backyard. And being on the island means they can service the customers better," he said.

Mr Black said An Bord Trachtala research showed there was a very good perception of quality Irish clothing in the North. He said he hoped the fair would become a regular event on the fashion calendar in the North.