Red tape can hinder trade for developing economies, says Kitt

Ireland must support efforts to facilitate trade and reduce the red tape which can hinder developing economies Minister of State at the Department of the Taoiseach Tom Kitt, said yesterday.

Speaking at the opening of the United Nations Centre for Trade Facilitation and Electronic Business forum in Dublin, Mr Kitt said it was in everyone's interest to reduce obstacles to efficient trade. The level of paperwork and administrative burdens could be daunting for exporters.

"A very topical issue is the problem of new security measures which have imposed further obstacles to the free movement of goods. These security problems,being led primarily by the US, have led to an emphasis on advance information and extra risk analysis," he told 250 delegates, who include customs officials and experts in electronic trading.

"If the information flows can be simplified, this will be of great value. Ireland strongly supports these initiatives and it is heartening that the UN have devoted such energy and resources to advancing the process," he added.

Software entrepreneur Conor O'Riordan, of the CP3 group, said Ireland would miss an enormous opportunity if the Government and Irish business do not move to position this State as the logistical hub between the US and Europe. Ireland was perfectly positioned to become the centre where international businesses would locate their customs compliance departments, he added.

Major changes to customs regulations are due to come into force in nine months in the US and EU. The changes, explained Mr O'Riordan, have come in the wake of the 9/11 attacks. The EU and the US have developed different systems which will demand the input of detailed data on every consignment before it can be shipped.

With the potential for a huge increase in paperwork and the headache of complying with different systems, the possibility was that only the biggest players would be able to survive the expense of the changes, Mr O'Riordan said.