Exports are down over 1.7 billion euro over the first six months of the year.
The Irish Exporters Association says news of the decline was 'unexpected' and it's warning that the outlook remains negative for the rest of the year.
It says more difficulties lie ahead as pharmaceuticals come off patent - and Europe's economies continue to falter.
The association's Chief Executive John Whelan says a fall in service exports is having a major impact.
