“Hungarian foreign policy must serve the country’s external economic interests”, Minister of Foreign Affairs and Trade Péter Szijjártó stressed in Budapest on Wednesday at a conference organised by the Hungarian Chamber of Commerce and Industry entitled “Foreign Markets in Focus – Trends and Opportunities within the Field of Exports”.
“This change has increased the significance of Hungarian foreign policy, the role of which is to also enforce external economic interests at company level; every ambassador has been ordered to act in the interests of all possible Hungarian business success”, he added.
At the conference, Mr. Szijjártó spoke about the fact that political, economic, military and technological changes have led to the development of a new world order; the question is, is this final, or will things develop further?
Several new challenges had to be faced in 2015 including, amongst others, the fact that the decrease in oil prices had both a positive and negative effect on national economies and the significant effect of the strengthening of the Dollar on international trade, the Minister pointed out.
According to Mr. Szijjártó the era of classical diplomacy has come to an end with the migration crisis and the dictionary now includes words and expressions that were previously only used “less formally”.
We must prepare for the fact that this year will be a period of blackmail in which the words “if you do not agree with European thinking then you will be punished” will become increasingly frequent in the rhetoric of certain European politicians.
The approach according to which immigration should be linked to EU funding is unfair and un-European, Mr. Szijjártó explained, stressing that European Union funding cannot be regarded as some kind of humanitarian aid, but is something that member states are owed in accordance with EU treaties and joint regulations, in addition to which Western European enterprises enjoy the benefits of EU funding to at least the same extent as Hungarian-owned companies. The opening up of the Hungarian market has enabled Western European companies to realise profits in Hungary compared to which EU funding represent only a small slice of the cake, he added.
In his speech before Hungarian businesspeople, Mr Szijjártó pointed out that last year was a record year for Hungarian foreign trade, with a year-on-year increase of 7.4 percent for Hungarian exports to 90.7 billion euros, while the Hungarian foreign trade balance also hit a record 8.1 billion euros. The Hungarian investment Promotion Agency (HIPA) succeeded in concluding 67 investment deals last year leading to the creation of 12,995 new jobs.
The Foreign Minister said diversifying the structure of Hungarian exports and reinforcing the role of small and medium-sized companies (SMEs) were both important. 80 percent of Hungarian exports go to the European Union with the remaining 20 percent going to third countries; further expansion is required within the latter area, which will be realised via opening towards further markets in the East and South, he explained.
With reference to eastern markets, Mr. Szijjártó said the European Union should strive to develop a dialogue with Russia as soon as possible based on mutual interests. The sanctions imposed on Russia and the embargo introduced in reaction to sanctions have had a damaging effect on the European economy with Hungary along losing some 4.5 billion US Dollars in export opportunities over a period of two years.
Hungarian enterprises have achieved success in several geographical areas in the Far East by concentrating on certain market segments and moving towards quality rather than quantity criteria, the Minister said.
Africa and Latin America are at the focus of opening towards the South, and the Ministry is recommending that Hungarian Embassies be opened in both Peru and Columbia next year, Mr. Szijjártó stated, pointing out that economic and trade relations with the USA are showing a never before seen level of activity, culminating in the founding of the American-Hungarian Business Council in New York last week.
Mr. Szijjártó also mentioned the fact that the government is providing indirect export funding to SMEs via the HIPA, which helps Hungarian enterprises integrate into the supply networks of international companies operating in Hungary. The ratio of Hungarian suppliers at the 65 foreign companies that have signed strategic partnership agreements with the Hungarian Government has increased form 65 percent to 69 percent over the past two years.
President of the Hungarian Chamber of Commerce and Industry László Parragh said at the conference that the Chamber is continuously renewing the foreign trade strategy is adopted in 2002.
According to Mr. Parragh, Hungarian small and medium-sized enterprises need knowledge and information to establish a presence on foreign markets. Last year, the Chamber organised 400 events with the participation of some 14 thousand businesses and is also acting in the interests of Hungarian enterprises through its international contacts and partners.
President of the Századvég Economic Research Institute Péter Heim reported to the businesspeople present on current tendencies and challenges highlighting amongst others the fact that the slow-down in China’s economy was to be expected, the far eastern country is in no danger of financial collapse and that, in his opinion, the Hungarian economy should continue to develop relations with China.
Mr. Heim also pointed out that oil exporters have lost 800 billion dollars over the past two years, the Russian economy is doing well despite difficulties and social tensions will continue in North Africa.
Director of International Affairs of the Association of European Chambers of Commerce and Industry Dirk Vantyghem said it was important for European small and medium-sized enterprises to appear on foreign markets that generate economic growth, and this is what the European Association provides assistance with through its network.
The Association of European Chambers of Commerce and Industry congratulated the Hungarian economy on its excellent performance.
(Ministry of Foreign Affairs and Trade/MTI)
