Bruton hopes to boost export growth in Asia

WHEN the Taoiseach arrived in Bangkok yesterday for the Asia EU summit he was hoping not only to build new political ties, but to fly the flag for Irish exporters.

The region takes 6 per cent of Irish exports, £1,139 million in 1994, up from £962 million in 1993. And Mr Bruton will be hoping that the added cachet of holding the presidency of the EU from June will give him an edge on the competition at this first "historic" meeting of the two regions.

The talks between prime ministers are intended to be informal and without an agenda, but will certainly concentrate on trade issues, avoiding the sensitivities of human rights and labour standards issues. This formula will also be observed at bilateral meetings where, diplomats say, the emphasis is to be on building bridges rather than burning thin.

Officials are hoping for some five or six bilateral meetings for Mr Bruton, probably with, among others, leaders from China, South Korea and Indonesia.

In his meeting with Gen Suharto, Mr Bruton is likely to touch only briefly in general terms on the issue of East Timor.

The details will be left to a meeting at foreign minister level between the Minister of State for European Affairs, Mr Gay Mitchell, and his counterpart.

The latter had an angry exchange with the Tanaiste and Minister for Foreign Affairs, Mr Spring, when they met to discuss a strong Irish statement a few months ago.

Ireland's trade with the region has been developing in leaps and bounds, and the potential for further substantial exports is enormous, Mr Mitchell argues. While Japan remains the main market for Irish goods - £715 million in 1994 - it is in the fast growing economies of Korea, Singapore band Malaysia that the success has been most dramatic.

Irish exports to South Korea increased by 121 per cent in 1994 to £83 million, to Singapore by 42 per cent to £134 million and to Malaysia, where Ireland last year opened an embassy, by 271 per cent to £116 million. The trade is dominated by demand for electrical and data processing parts, but Malaysia is also a strong market for food preparations and sends significant numbers of students to colleges in Ireland.

While the bulk of the trade is carried out by Irish based multinationals, Bord Trachtala believes there are some 250 indigenous Irish companies active in the region, which achieved sales of close to £200 million.

China, whose economy is booming - 11 per cent growth in 1994 - is becoming an important market for Irish aviation services. And Hong Kong, like Taiwan not represented in Bangkok for fear of offending Beijing, takes over £100 million in Irish exports.