Czech Business Today

In today’s globalized economy, EU agreements with third countries are pivotal for entrepreneurs looking to expand their business horizons. These trade and partnership agreements open doors to new markets, reduce trade barriers, and create opportunities for growth by providing better access to international customers and resources. For Czech entrepreneurs, these agreements are beneficial. They facilitate easier entry into lucrative markets beyond the EU, offer protection for investments, and enhance competitive advantage through favourable trade terms. By extending these agreements, Czech businesses can not only broaden their market reach but also strengthen their position in the global economy.

On June 25, 2024, the EU and Kyrgyz Republic signed the Enhanced Partnership and Cooperation Agreement (EPCA). The EPCA establishes a new legal framework for strengthened political dialogue and cooperation across various areas, including trade, sustainable development, research, education, and security. It also opens opportunities for collaboration on critical raw materials essential for green and digital transitions. This agreement reaffirms both parties’ commitment to international law and effective multilateralism, aiming to enhance peace, stability, and mutual benefit. Since 2016, Kyrgyzstan has enjoyed preferential market access through the EU’s GSP+, which contributed to a 116% increase in trade with the EU in 2023. Given its strategic, the Czech Republic could leverage these growing EU-Kyrgyz trade opportunities to benefit Czech businesses, particularly in sectors related to critical raw materials and green technologies.

On June 29, 2024, President von der Leyen attended the EU-Egypt Investment Conference in Cairo with Egyptian President Abdel Fattah El-Sisi, where over 1,000 business and government representatives explored EU-Egypt business opportunities. The conference followed the March signing of the EU-Egypt Strategic and Comprehensive Partnership, marking a new era in relations. Von der Leyen announced over 20 deals worth over €40 billion across various sectors and a €1 billion Memorandum of Understanding for Macro-Financial Assistance to support Egypt’s reforms and green transition. A potential €4 billion follow-up operation is planned, and a €25 million project for clean-tech and digital skills training was also signed. Von der Leyen praised the agreements for fostering investment, job creation, and a closer EU-Egypt partnership, calling it a “true win-win” for both sides. The Czech Republic could capitalize by exploring investment opportunities and expanding its business presence in Egypt, especially in sectors such as clean-tech and digital skills.

In July, the EU and Singapore concluded their first Digital Trade Agreement (DTA), complementing the 2019 Free Trade Agreement. The DTA aims to enhance digital trade by ensuring cross-border data flows, removing unjustified barriers, and boosting trust with strong rules, including spam control. This agreement positions the EU and Singapore as leaders in digital policy, promoting fair digital economies while preserving policy space for future challenges. It will also strengthen economic ties, particularly in digitally delivered services, reflecting the EU’s ambition to set modern global digital trade rules. Czech businesses, with their strong digital sector, could benefit from these new opportunities by engaging in expanded digital trade and collaboration with Singapore.

The trade agreement between the EU and New Zealand entered into force on May 1, 2024. It is expected to reduce tariffs by 140 million EUR annually and could increase trade by 30% over the next decade. EU exports could grow by up to 4.5 billion EUR per year, and EU investments in New Zealand could rise by up to 80%. The agreement will eliminate tariffs on key EU products such as wine, chocolate, and confectionery, while also protecting traditional European agricultural products. Additionally, it includes commitments to sustainability, including adherence to the Paris Climate Agreement. Czech companies could benefit from this agreement by exploring new export opportunities in increased trade in key sectors like food and beverages.

On September 16, 2024, EU and US representatives met to assess progress within the Trade and Technology Council. They discussed cooperation in areas such as artificial intelligence, digital infrastructure, technological standards, and secure supply chains, particularly for solar technologies and semiconductors. The EU and US also emphasized the need for more sustainable trade flows and the exchange of best practices in investment screening. Czech businesses could take advantage of this transatlantic cooperation by investing in technology and infrastructure projects and exploring opportunities in the evolving tech and sustainability sectors.

The Czech businesses are eagerly awaiting the conclusion of a trade agreement with MERCOSUR, as this region offers significant opportunities. MERCOSUR provides a large and diverse market for Czech exports, particularly in sectors like machinery, automotive, and technology. The agreement would enable businesses to diversify their trade and accessing key resources such as agriculture and energy. Additionally, it could lower tariffs and simplify customs, making Czech goods more competitive. Overall, MERCOSUR presents a strategic opportunity for Czech entrepreneurs to expand globally and strengthen economic ties with South America.

Sources: European Commission