The Irish Exporters' Association says higher oil prices, security fears and currency movements have cut short a recovery in export sales.
Releasing the IEA's half-year review, chief executive John Whelan said the continued strength of the euro against the dollar and sterling meant exporters were losing market share in the UK and US.
He said exporters did not expect to increase sales in the second half unless there was a 'significant swing' in exchange rates and an improvement in the fuel price situation.
The review shows that Irish goods exports were up 5% in the first quarter compared with the same period in 2003, but 1% down in the second quarter.
Exports for the six months were worth €41 billion. This is up 2% on the same period last year, but down 16% on the same period in 2002.
There was better news from euro zone markets, where exports rose 11% in the first six months. There was good growth in France, Italy and Holland, but exports to Germany continued to decline.
Exports to Asia were also up 11%, with the association saying the rapidly expanding Chinese market was leading to a general economic resurgence in the region.
