Reality motivated by bilateral economical benefits

Hungarian-Slovak economic co-operation data recorded by the official statistics would not hint much on an involvement of two adjacent countries sharing their longest border and a millennium-long history. Although the commercial relationship experienced a dynamic revival recently, there is still a lot to be desired, taking into account their geographical and historical conditions and mutual interests.

The trade turnover increased to nearly 750 mil. USD in 1998 from 630 mil. USD in 1996, rating thus Hungary as the number seven country in imports and number six in exports from Slovakia. 590 Slovak-Hungari-an joint ventures operate in Slovakia presently. The Hungarian capital investments in Slovakia of 30 mil. USD is in view of experts the lower limit of the potential scope of the both economies.

Both countries create contractual conditions to enhance bilateral economic relations, facilitated by international treaties such as the Agreement on Mutual Commerce and Payments of 1994 and Agreement on Establishment of Intergovernmental Slovak-Hungarian Mixed Commission for Economic Co-operation of 1995. Another instrument was added on March 26 1998 with the Slovak-Hungarian Chamber of Commerce founded in Lučenec as a branch establishment of the Slovak Chamber of Industry and Commerce. Simultaneously, its Hungarian counterpart, the Hungarian-Slovak Section of the Hungarian Chamber of Industry and Commerce was established in Salgotarjan.

"It was the Rimavská Sobota meeting of Slovak, Hungarian and German businessmen in 1994 under the auspices of the Lučenec, Salgotarjan and Chemnitz Chambers of Commerce that gave rise to the introduction of this of Industry institutional support, says Vladimír Bystriansky, the Regional Chamber Director in Lučenec. "Ever since the Hungarian-Slovak interface has been displaying vital signs of a close co-operation. It can be documented by the information exchange, contract meetings, exhibition presentations, and supporting activities performed by both Chambers. Originally regional in scope, this co-operation expanded to flourish nationally and its top achievement is the establishment of the specialised Chamber in Slovakia and section on Hungarian part."

One of the most valuable results of the co-ordinated approach of the two entities is a draft of a number of items to be placed on the agenda of the inter-governmental Slovak-Hungarian Commission in favour of trade liberalization. "Our top concern is a recommendation for a mutual certificate recognition," adds V. Bystriansky. "Despite acceptance of results generated by some testing facilities they are not relieved of a liability to national testing and approval. We believe that the trading conditions, namely those across the CEFTA countries, call for further liberalization. A considerable progress in lifting certain trade barriers was reached for industrial products, yet the sensitive commodities such as agricultural products and textile remain to be an open issue."

"Another item to include in the agenda", says V. Bystriansky, "is the land planning of major areas, currently strictly adhering to the borderline principles, leaving a white spot across the border. Across-border co-operation enhancement can be seen in operational infrastructure links. We propose to co-ordinate the land planning process leading to a continuous transport, power distribution and information channel connections".

Across-border co-operation in the field of industry, agriculture and environmental protection provides a wide range of options, believes V. Bystriansky. The border being historically conceived as a development barrier between the regions, we want it now to shed this prohibiting feature, tapping its advantage instead. Connecting the product and job markets striving towards common development on both sides of the border may be beneficial not only for the two national economies, it can also contribute significantly to the EU integration process".

For the Lučenec-Salgotarjan link as a synonym for the across-border co-operation, it is no surprise then to witness primarily Hungarian and Slovak business attendance at the exhibition presentations. The significance of these meetings can be confirmed by one of them - the "Region Contract" exhibition - organised in Lučenec in mutual effort of the Regional Chamber of the Slovak Chamber of Industry and Commerce and the Trade Centre exhibition company. "According to our findings we have prepared conditions for 560 companies to meet here, one third of them having entered into active trade or production terms to our conservative estimate," evaluates V. Bystriansky the benefit of this joint effort. "This estimate is rests in the fact that our chief mission is to facilitate the first contacts, leaving any further developments to the arrangements of the entities involved."

A decisive feature of the Slovak-Hungarian Chamber of Commerce is the efficient and immediate availability of information on the co-operation potential. The interested parties can find in its premises Hungarian data and information material such as business catalogues, applicable laws and regulations, custom rates, samples of official forms and a number of other vital details needed for a good start on the Hungarian market. Consultation and advisory services, search of partners with a compatible production or trading programme, assistance with the presentations and at the exhibitions have become an everyday routine.

"Both the Slovak and Hungarian Chambers of Commerce in their increasing assistance to the businessmen have concluded that the best method of meeting their demands is in a complex information service," highlights V. Bystriansky. Its enhancement is also supported by the Slovak and Hungarian Embassies in Bratislava and Budapest and the Hungarian Commercial Representation in Bratislava as the guarantors for the efficient supporting activities of the both countries reflecting current needs. No doubt this strategy proves to be very successful, having a pool of over six thousand Slovak and Hungarian participating entities. Small and medium enterprises participate in this number by over 70 %.

"It is evident that the Slovak and Hungarian co-operation can be seen as a reality, mutually motivated by bilateral advantages, rather than a political choice, as was the case in the past," emphasised V. Bystriansky.

By Jozef Stiegel

Slovak Trade FORUM