At the end of 1998, a six-year period passed since the inter-state agreement of the customs union between Slovak Republic and the Czech Republic came into force. The effort to maintain and not to affect existing bilateral prosperous productive, economic and commercial relationships after the split of the Czechoslovak Fede-rative Republic led to establishment of the union. Is the customs union advan-tageous for the Czech Republic in the time when Germany is the biggest trade partner of the Czech Republic? This is the first question for Eva Glendova, Czech Ministry of Economy and Trade Preferential Contractual Relations Department Chief, who chairs also the whole agenda of the customs union.

Current development of the Czech-Slovak cooperation within the framework of the customs union confirms also its advantage for the Czech Republic, which exports has an increasing trend expressed in crowns. Foreign-commercial relationships with Slovakia will be in the future influenced by the narrow connection of economies of the two countries, because industrial power of the Czech Republic and Slovakia has a complimentary character. In an important way, it helps maintain mutual commercial contacts and cooperation between the companies and entrepreneurs on high level. There is registered the whole range of the joint companies in Slovakia. On the other hand, for example, Skoda Prague, a.s., as the main supplier of technological equipment for nuclear power plant Mochovce, belongs to important Czech suppliers of technological equipment for Slovakia. Prospective is also participation of the Czech firms in wide investment activities in some chemical companies in Slovakia. There are several agreements on productive and commercial cooperation concluded between the Slovak and Czech subjects.

What is necessary to be seen as the biggest problem of the Czech side with regard to customs union?

We consider mutual trade in agricultural-food products, which represents about 10 percent of overall trade turnover, to be a sensitive area. Slovakia is trying to restrict imports from the Czech Republic and it set some protective measures. For 1997, Slovakia gradually declared restriction of volume regarding import of soft drinks and beer. Restrictions were applied also in 1998. However, measures applied by the Slovak side did not influence mutual trade in agricultural-food products, as well as mutual exchange of goods. It is not any secret that agricultural-food complex and its connecting into international trade is generally considered to be as very sensitive area. Czech-Slovak cooperation in this field is the subject of regular negotiations of the Committee for Coordination of Economy Policy in Agriculture. In the past, the Committee played more active role and succeeded in finding a positive solution regarding some disputable issues (in close touch with particular productive associations and commercial subjects).

Slovakia is often criticised by the Czech side for difficulties caused by repudiation of the goods certification...

Goods certification is the most criticised issue by the Czech importers, because automatic adoption of certificates would bring fundamental simplifying of trading. Unfortunately, the legal norms of contracting parties did not allow this. This issue is perceived mainly by small- and medium-sized entrepreneurs as being a complication in mutual trade.

The Czech Republic was included into the first group of the countries applying for the EU membership. This means, it has a chance to gain the EU membership sooner than Slovakia. What this will mean with regard to following functioning of the customs union?

On the basis of the results of discussions held between Czech representatives and EU officials in September 1998, the EU insists - in case of Czech Republic's entry into the EU - on finishing of the Customs Union between the Czech Republic and Slovakia. The matter is not the flow of current goods via the customs union into the EU, but agricultural-food products, import of which the EU strongly safeguards. However, the most decisive will be talks between the Slovak and Czech representatives. High level of economic cooperation and geographic conditions are base that in the future Slovakia will be for the Czech Republic prospective trade partner, because Slovak market secures sales for approximately 11 percent of the overall exports from the Czech Republic.

Slovak Trade FORUM