Enlarged Hungarian Business Chambers Forum addresses US tariff measures

The Business Chambers Forum, a body established to consult on economic policy under the coordination of the National Economy Ministry, convened on Monday for the second time this year.

The National Economy Ministry said in a statement that the Business Chambers Forum comprises representatives from the Hungarian Chamber of Commerce and Industry (MKIK), the National Association of Entrepreneurs and Employers (VOSZ), the Confederation of Hungarian Employers and Industrialists (MGYOSZ), the National Federation of Hungarian Building Contractors (EVOSZ), AmCham Hungary, and the German-Hungarian Chamber of Industry and Commerce (DUIKH).

The members were joined for Monday’s meeting by representatives of Audi, Mercedes, BMW, Bosch, DENSO and GE. The ministry said the meeting focused on the new tariff measures announced by the United States of America.

National Economy Minister Márton Nagy said the expanded format for the meeting was adopted because of the US tariff measures and added that this kind of joint thinking and dialogue contributes to mapping the economic impacts. For that purpose, the consultations will remain continuous.

MKIK held a foreign trade conference

On Monday, the Hungarian Chamber of Commerce and Industry (MKIK) held a foreign trade conference titled “Foreign Trade in Focus” as its annual starting event for the sector.

Levente Magyar, a state secretary at the Ministry of Foreign Affairs and Trade, said that in the current uncertain global political situation, the task of Hungarian foreign policy is to ensure the country’s peace and the representation of Hungarian economic interests.

Magyar said Hungary’s decisions will continue to be driven by standing up for Hungarian interests and not by adapting to expectations, and noted that extreme volatility has set in, and it is very difficult to plan in the uncertain geopolitical situation.

The state secretary said that as part of the government’s programme launched in 2019 to support Hungarian companies investing abroad, 254 firms have received support to make HUF 254bn of investments in 17 countries. Depending on the budget situation, a new call for applications may be announced at the end of the year, he added.

Magyar noted that the Hungarian Investment Promotion Agency (HIPA) helped EUR 10bn of investments last year and 24 companies received support.

He said the investment incentive system is being fine-tuned, and in the future, greater emphasis will be placed on supporting research, development, innovation, knowledge-intensive, and technological transition projects.

Minister of Foreign Affairs and Trade Péter Szijjártó addressed the conference in a video message and said Hungary is interested in connectivity and the free operation of world trade, not in the system of economic blocs that is currently emerging.

Szijjártó said Hungary’s economic neutrality strategy ensures that it maintains its economic and political relations in all directions and the focus of the Hungarian foreign trade strategy is to help as many Hungarian companies as possible access foreign markets and to ensure that the Hungarian share in the Hungarian export performance grows.

MKIK head Elek Nagy said there is no other path for the Hungarian economy than technologically intensive development, as the era of labour-intensive growth has ended. He quoted a survey showing that half of Hungarian exporting companies plan to open up to new markets, with 30pc indicating that they would open towards one or two new regions, and 20pc would open up to 3-5 new regions.