The chemical sector accounted for almost half of the Republic's €33.2 billion non-EU export trade in 2002, according to full-year figures released by the Central Statistics Office (CSO) yesterday.
The data shows that non-EU chemical exports were worth €14.9 billion last year, an increase of 3 per cent on 2001.
Within the sector, massive annual export growth of 69 per cent was recorded among producers of medical and pharmaceutical goods. This so-called "viagra effect" was worth €3.9 billion in non-EU exports in 2002.
The expansion ran contrary to overall export trends, however, with total non-EU exports declining by 3 per cent to €33.2 billion. At the same time, the value of imports from non-EU countries fell by 6 per cent to €19 billion.
The CSO has attached a health warning to the numbers, however, noting that the 2002 data has been "significantly influenced by changes in the geographic location of international distribution centres". This has, the CSO says, led to a shift in trade from non-EU to EU countries, particularly in the chemical sector.
The US remained by far the Republic's most significant non-EU trading partner in 2002, accounting for 50 per cent of exports and 43 per cent of imports.
The value of exports to the US grew by 5 per cent year on year to reach €16.5 billion, while imports fell by 2 per cent to €8.1 billion.
Mr Alan McQuaid, chief economist with Bloxham Stockbrokers, said the figures underlined the importance of maintaining solid links between the US and the Republic.
"The export sector drove the economy last year. If anything happens to the US, it's going to be very negative for Ireland," Mr McQuaid said.
Exports to Japan decreased significantly last year, in line with Japanese economic growth, falling by 19 per cent to €2.6 billion. Exports to Switzerland grew by 15 per cent to €3.1 billion.
On the import side, trade with Singapore fell by 29 per cent to €0.9 billion over the course of the year. This was cancelled out, however, by a 39 per cent surge in imports from China, which were worth €1.2 billion in 2002.
Outside the pharmaceutical sector, non-EU export growth was minimal last year. The electrical machinery sector saw the sharpest decline, with exports falling by 29 per cent to €3.1 billion.
The same sector saw a 16 per cent decline in imports, which fell to €2.7 billion. Imports of telecommunications and sound equipment,fell back by 41 per cent to €0.9 billion.
