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ADDRESS BY PRESIDENT ROBINSON TO THE SAO PAULO INDUSTRY FEDERATION (FIESP)

ADDRESS BY PRESIDENT ROBINSON TO THE SAO PAULO INDUSTRY FEDERATION (FIESP), ON THURSDAY, 30 MARCH, 1995.

Mr. Vice President, ladies and gentlemen

I very much appreciate the opportunity of addressing you today, in the impressive city of Sao Paulo, whose history stretches back well over 400 years. It is an honour to be the first Irish President to visit the city in an official capacity, to experience its awe inspiring size and witness its economic importance.

I would like to congratulate the Federation of Industry of the State of Sao Paulo and the Centre of Industry of the State of Sao Paulo on the important role they have played in developing the strength of your industrial base. Your two organisations have worked closely together over the past 60 years and the support that you have given to your members throughout the State on the full spectrum of issues affecting industry has clearly contributed significantly to the development of the vibrant economy that now existed in the State of Sao Paulo.

In Ireland we have an image of Brazil as a vast country of natural contrasts and enormous potential, a country with great challenges in the social and economic areas but whose people combine a natural enjoyment of life with a determination to produce the necessary conditions within which the Brazilian economy can develop into one of the most powerful forces internationally. We admire your determined efforts towards economic reform and stability and pay tribute to your business community for its fine record of achievement, especially in international trading, reflected in years of impressive trade surpluses.

At first sight there may not appear to be many ties that bond our two countries. Yet economic interdependence and the multiplication of issues of global interest have increased the opportunities and the necessity for co-operation between different regions and trading blocs. Growing political and economic stabilisation have allowed the Latin American region to advance in great strides economically, thus greatly increasing its interest to trading partners such as Ireland.

Ireland, in contrast to Brazil, is a small island state heavily dependent on trade for our economic prosperity. Ireland is a young nation, with an outward perspective. We rely heavily on exports to generate growth, develop industry and raise living standards. Over the past thirty years, Ireland has set itself the objective of transforming a protected economy into a total commitment to inward investment and open trade. Trade has been the life blood of modern Ireland and our success as a trading nation is remarkable by any standards. From the 1960's when we were essentially an exporter of agricultural commodities to our next door neighbour Britain, Ireland today has one of the most export led economies in the world. Almost 70% of our GDP comes from exports and four out of five jobs in Irish manufacturing industry depend on the business we win abroad.

While Europe is our principal market place, Ireland has been active in building commercial links and developing trade throughout the world. We value the fact that we have substantial trade connections with Brazil, which is Ireland's most important trading partner in South America. There is however scope for considerable improvement and recent steps towards trade liberalisation will, I believe, assist in the objective of improving trade between our two countries. Our national Board for external trade is at present considering the possibility of organising, perhaps before the end of this year, an Irish trade mission to Brazil.

Ireland approaches its relations with Brazil not just on a bilateral level but also as a member of the European Union. Ireland has been a member of the European Union for over twenty years and membership is the cornerstone of Ireland's foreign policy. Relations between Brazil and the European Union are very close. The Union is the main destination for Brazilian exports and the second main origin of imports.

The benefits of our Union membership have been impressive. In the period between 1960 and 1990 the volume of our exports has increased tenfold. It has created huge opportunities for our trade development by effectively increasing our home market one hundred fold. Our trade has diversified. Our economy has consistently grown - often at record levels in European terms. Currently our annual GDP per person is US $14,000 approx. Our estimated growth levels for the remainder of the decade are among the highest in the OECD and are predicted to remain so until the end of the decade.

Given Ireland's geographic and demographic conditions, and our membership of the European Union since 1973, it is natural that Ireland should be a country which actively pursues a policy of welcoming inward investment. Today, Ireland is home to more than 1,000 overseas companies, a modern industrial country with a leading position in many of the high technological growth areas such as electronics, chemicals, pharmaceuticals, healthcare, financial and other traded services.

So we have in place a very good foundation for further expansion in business between Brazil and Ireland. Two trade orientated business communities, each a member of a large free trading area. The potential is vast, and I believe, well within reach.

The attraction of using Ireland as a marketing base for Europe is very clear. For Irish companies - small as well as large - doing business throughout Europe is a daily event. We have the market access, the knowledge and the language skills. We can offer ease of communication through English with companies from the United States and of course we also have strong cultural ties with that country, which makes for comfortable relationships. I would encourage Irish and Brazilian companies to avail of each other's access to these enormous markets by forming business alliances and joint ventures.

For those interested in the European market, but who do not wish to make direct investments overseas, I would encourage consideration of a marketing alliance with an Irish company. Such arrangements require little investment and can, almost at a stroke, open the door to the dynamic and richly rewarding market of the European Union.

We are also in Ireland very strategically located for air transport connections to Europe and many countries already use our airport at Shannon as a hub facility for onward passage of goods and people to the member States of the Union.

I would like to pay tribute to the leading role which Brazil has played in the past decade to promote regional and sub-regional co-operation in Latin America. Specifically, the striking initial success of the pioneering Mercosul project has generated considerable momentum for economic integration. Our own experience within the European Union demonstrated the advantages of a large single market.

The emergence of powerful regional trade groups such as the European Union, the Mercosul Agreement and NAFTA offers great potential for generating economic growth and improved living standards within these regions. It is important that the expansion of open trade on a regional basis should be seen as building bridges, not barriers, to the further development of global free trade. I am pleased to note the strengthening of relations between the European Union and Mercosul is progressing and that a framework agreement on trade and economic co-operation should be finalised shortly. In the wider perspective, the signing of the GATT Agreement last year, and the establishment of the new World Trade Organisation, show that there is a strong commitment to world-wide trade development and nations like Ireland and Brazil can contribute positively to this process.

As I enjoy the hospitality of your beautiful country, a land which, with its great diversities and the stunning beauty of its landscape, has captured my imagination, I hope that you will also visit Ireland. International tourism is a wonderful way to break down barriers between people and promote mutual understanding. A great many Brazilians travel to Europe each year and I would like you to come and visit Ireland. You will be guaranteed a very hearty welcome.

Ladies and Gentlemen, I thank you.