Czech Business Today

European Trade Policy and all its instruments have a direct impact on day-to-day business of European companies. 

Therefore all the instruments have to be consulted with companies and their associations and a comprehensive approach of both, European and national measures, is a must. Being realistic, we can no longer claim Europe will become the most competitive economy of the World. China’s share of the Global GDP rises and the BRIC countries will take lead soon. 

How can Europe succeed? How to keep pace with such growth? It seems that the only way is to recognise Europe as not a world trade partner with un-limited negotiating power, ensure strong commitment of EU and all Member States to open markets, focus on the most prosperous and promising markets and implement all necessary structural changes. There are a number of open negotiations with various trade partners on Free Trade Agreements and other comprehensive trade agreements. It is very easy to quantify their impact – e.g. the provisionally applied FTA with South Korea adds to the European GDP 0.08%. If only there was a comprehensive agreement with the US, the value would be more than 1% of EU GDP. Anna Teličková, Director of Multilateral and Common Trade Policy (Ministry of Trade and Industry CZ), underlined the need for comprehensive European and national Trade Policy and impact of negotiated FTAs on day-to-day business of Czech companies. 

From the point of view of Luděk Sefzig, Chair of Senate’s EU Affairs Committee, the biggest reserves are in better coordination of economic diplomacy and support to SME’s (also through governmental insurance fund EGAP and Czech Export Bank). Deputy Director General of Confederation of Industry of CZ Dagmar Kuchtová stressed the Czech employers have the opportunity to influence Czech and European Trade Policy through business associations such the Confederation or BUSINESSEUROPE. More and more Czech companies are facing problems in China’s market. Director of ECIPE Hosuk Lee Makiyama pointed out Europe should acknowledge that it has no longer world’s leading position in economic growth and focus on its strong aspects – implement structural reforms and added value. Many companies call for access to foreign public tenders. Nonetheless, there is no single market for public tenders even within the EU. So how could we expect success in tendering in China or Canada? Europe does not have such negotiating power to push its trade partners to agree. 

Also, we often hear calls for reciprocity in negotiations. Such principle makes more sense in theory while it often fails in practise. This discussion was part of a debate organised by Representation of the EC in Prague, Information Office of the EP in Prague, CEBRE and KZPS on 5th September 2011, with the support of the University of Finance and Administration, server EurActiv.cz and Prague Leaders Magazine.