trade

Foreign minister: Ankara EU’s ‘strategic partner’

Hungary sees Turkey, whose economy is the strongest among Europe’s neighbours, as a strategic partner of the European Union, Foreign Minister Péter Szijjártó has said in an interview to Turkey’s state news agency.

Hungary wants an EU policy towards Turkey based on a strategic partnership instead of “hostility, hypocrisy, double standards and lecturing,” Szijjártó told Anadolu.

Responding to the EU budget dispute over rule-of-law conditionality, he rejected the idea that Hungary and Poland were moving away from the EU, saying the Hungarian government wanted to make the EU stronger, though it disagreed with others as to how this may be achieved.

The minister insisted that an agreement would not be forthcoming if Hungary and Poland were bypassed, adding that it was in the EU’s clear interest to strike an agreement. Hopefully Germany, which holds the EU rotating presidency, would come up with a proposal acceptable to both, he added.

Szijjártó said the issue of migration was dividing EU member states. Instead of encouraging people to travel to Europe via Turkey, their living conditions at home should be improved so that they stay there, he said.

He said cooperation between Hungary, which has observer status in the Turkic Council, and other members of the council — Turkey, Uzbekistan, Azerbaijan and Kazakhstan — had been successful during the pandemic.

Read alsoTurkey, Russia agree on terms of joint center for Nagorno-Karabakh cease-fire

December 9, 2020

Bulgaria-Hungary ties ‘strong’, says foreign minister

Bulgaria-Hungary ties are strong even in times of crisis, Foreign Minister Péter Szijjártó said on Wednesday after talks with Bulgarian Deputy Prime Minister Marijana Nikolova, adding that one of the effects of the pandemic was to boost bilateral cooperation.

The Bulgarian community in Hungary is a fulcrum of relations, and important areas of cooperation include energy and combatting migration, he said.

Both countries will build a gas pipeline by October 2021, opening up at least four new supply opportunities for Hungary, he said.

Szijjártó also said the Bulgarian authorities were having to take action against illegal migrants with far greater frequency than ever, adding that Brussels should not encourage immigration. He added that Hungarian police will join other forces next year in protecting Bulgaria’s borders with Serbia and Turkey.

Nikolova said friendship and historical traditions characterised ties between the two countries, and she urged the expansion of cooperation on tourism, adding that a related agreement may be reached at the next meeting of the Hungarian-Bulgarian Joint Economic Committee in late February or early March.

She said cooperation may be developed in the areas of environmental protection, waste management, water treatment, road construction, telecommunications, and pharmaceutical production.

Meanwhile, responding to a question on vaccines, Szijjártó said there may be a sufficient amount of vaccines from European projects in the first half of 2021, but Hungary was not excluding other options. Whatever vaccines either the domestic authorities or EU authorities approve will be made available, he said.

Read alsoHungary and Bulgaria in full agreement concerning crucial issues and challenges

December 9, 2020

Brexit won’t have big impact on Hungary

If Brexit goes ahead without a trade agreement, the economic impact on Hungary will be negligible, business daily Világgazdaság said on Tuesday.

Hungary-UK cooperation is expected to be extensive in the future, especially in the areas of energy, car making, decarbonisation, AI and green mobility, the UK ambassador to Budapest, Paul Fox, told the paper.

Raiffeisen Bank analyst Zoltán Török said research from 2016 indicates that Hungary’s economic growth may shrink by 0.2-0.3 percentage points in the year after Brexit if there is an agreement.

Hungary’s ties with the UK are closer than those of other countries in the region, with a correspondingly greater impact, though in light of the effects of the coronavirus crisis, the effect could be barely noticeable, he added.

Whereas on the macroeconomic scale Brexit’s impact may be negligible, companies directly affected by Brexit may feel its impact more keenly, he said.

Hungary is the UK’s third largest export partner in the region, with trade in goods and services worth 5.7 billion pounds sterling over the past four quarters,

the ambassador noted. Businesses range from telecommunications equipment, electrical machinery, pharmaceuticals to manufacturing products. The UK is the sixth largest investor in Hungary.

Tourism is also a large component:

417,000 Britons visited Hungary last year.

The surplus of service exports will take a big hit this year, with the corona crisis mainly affecting Budapest, the primary destination for British tourists.

But as the epidemic wanes, Budapest could once again be a popular destination, Duncan Roberts, commercial director of the British Airways, said.

Next year British tourist guest nights in Budapest could reach 60-70 percent of the 2019 level if the borders are open and the virus subsides.

British Ambassador to Hungary: UK aims to strengthen ties with Hungary after Brexit

Read alsoHungarians everywhere – Prince Charles talked proudly about his Hungarian ancestors – VIDEO

December 8, 2020

Foreign retail chains to vanish from the Hungarian food industry?!

The government commissioner, János Lázár, announced a protectionist policy in order to save and revive the Hungarian food industry. Besides supporting the Hungarian-owned manufacturing industry, the government’s plans include the displacement of multinational retail companies.

Within the framework of the online event of the Agricultural Sector Conference 2020 organised by the Portfolio Group, the government commissioner, János Lázár pointed out that

time has come to redesign the Hungarian countryside and agriculture.

According to the politician, as a result of the pandemic, the whole world has learned a lesson about the importance of independence. If borders have to be closed and goods and people cannot move freely, the significance and the ability of self-sufficiency increase. He also highlighted that

the government’s plans also include the displacement of foreign retail chains,

which requires an openly protectionist policy and an offensive approach, because the establishment of the Hungarian national retail is essential. “An important question in the current situation is whether EU funds can be blocked for political reasons. And the answer is no. These are not benefits, but allowances.” – said the politician, adding that he was not making his point for a Hungary outside the European Union.

The Fidesz politician stated that the countryside and agriculture are the two areas that did not win during the change of regime nor during the accession to the EU – reported by 24.hu. According to János Lázár, today Hungary is a vehicle country, because 50% of GDP comes from the automotive industry.

“Despite the change of regime and the two cycles of EU agricultural financing, Hungarian agriculture is lagging behind. We are a country exporting raw materials and importing finished products.” Therefore, to improve the situation in agriculture, it is necessary to consolidate into cooperatives, following the Polish pattern, or “strengthen the Hungarian processing industry so that Hungarian raw materials are processed by Hungarian companies, packaged by Hungarian companies and sold in Hungarian shops.”

János Lázár emphasised that the next ten years are the last chance to establish a strong, self-sufficient agriculture, modern processing industry and food production in Hungary. Accordingly,

within ten years, the government aims to see 80% of the food produced and processed in Hungary on the shelves of the shops.

Previously, we could see a similar process when Hungarian companies took over the outgoing foreign chains. Dozens of grocery stores fell into national hands in 2012, when the French Delhaize Group withdrew the Match and Profi stores from the Hungarian-owned CBA and Coop – reported by Magyar Nemzet.

Hungarian companies support the newly introduced plans

because they consider it timely to strengthen the domestic products and supply chain industries against import vulnerability – reported by the news portal.

Read alsoCoronavirus – Minister of agriculture: Hungary food supply stable

December 8, 2020

EU proposes plan to improve “severly damaged” ties with U.S.

The European Union (EU) unveiled on Wednesday a comprehensive plan to improve its partnership with the United States, which the bloc believes has been severely damaged under the current U.S. administration.

The plan, named “A new EU-U.S. agenda for global change,” was proposed by the EU’s executive arm, the European Commission, along with Josep Borrell, the EU’s high representative for foreign affairs and security policy.

“With a change of administration in the U.S., a more assertive Europe and the need to design a post-corona world, we have a once-in-a-generation opportunity to design a new transatlantic agenda for global cooperation,” the document said.

The proposal includes cross-the-board plans covering a joint battle against the COVID-19 pandemic, climate change combat, solutions to trade disputes, an agreement on digital taxation and closer geopolitical partnership, among others.

It also includes an idea to establish a new EU-U.S. Trade and Technology Council, which the EU said would help facilitate trade.

“At the core of this agenda is a united, capable and self-reliant European Union, which is good for Europe, good for the transatlantic partnership and for the multilateral system,” Borrell told a press conference on Wednesday.

Answering a question about the purpose of the proposal, Borrell said EU-U.S. cooperation would not mean an exclusion of China in the field.

“The purpose is not to push China out of international trade. We need China to be part of international trade,” he said.

The proposal will be further discussed by foreign ministers of the EU member states early next week, before being submitted to the European Council for endorsement.

It should be launched officially at an EU-U.S. summit in the first half of 2021, a meeting proposed by European Council President Charles Michel during a phone call with U.S. President-elect Joe Biden last month.

Read alsoThe US will be a stronger presence in EU politics after the Biden presidency

December 3, 2020

Effective ways of becoming a better trader

It’s such a beautiful thing to venture into trading. Knowing the kind of trading business to engage in and engaging in it is a huge step, but it has to be taken very seriously for success to be assured. With a professional trading platform, a trader would perform better.

Often, traders talk about how much effort they put into ensuring they get the best out of trading, but it seems like no satisfactory result is forthcoming.

Well, sometimes they are right, but there are effective ways to take trading seriously according to Forbes. This will guarantee more profit and less loss. Here are some of the ways to take trading to the next level:

Acquire knowledge

We all know that knowledge is power, and right and adequate knowledge makes a trader more powerful and enlightened. It is essential to learn everything that can be learned about trading. Knowledge will help a trader understand the dynamics of the trade to make accurate analysis.

Use technology

Technology can be a great tool in the hands of a competent trader. Get conversant with the latest technology device professional traders use. Watching videos of how people digitalize their trade to make more profit could trigger the best in a trader. Technology can also be in the form of a professional trading platform.

Use a Trading Plans

A trader should understand how to plan his day. It is not possible to trade all the time. A trader must schedule his trading hours. When he checks in to see how a trade is going. It is bad to place a trade and forget about it. This is a wrong step and it shows how unserious a trader seems to be.

Treat trading like a business

Trading is a serious business and should be treated as such. Everyone begins a business to make profit. That is one of the reason individuals take their business seriously. Traders have to imbibe that same mentality. Every trader should understand that he ought to profit from trading. Besides if a trader is not profiting then he is acquiring losses. Trading should not be treated as a hobby like sports or an adventure.

Set feasible goals and targets for your Trading

Goals are vital and an essential aspect of being y able to take trading seriously. Setting achievable and realistic goals keeps a trader on his toes. Because he would want to achieve that set goal. So, take out a note pad and write down specific goals that are archivable.

Study the market

Do a market survey, understand how the trading business works. Check out what other traders are doing, learn from other professional traders both offline and online. Search for new ideas as regards this.

Experience is good teacher, but learning from the other traders is a better move which saves a trader, his time and money.

December 2, 2020

EU, UK entering “last week or so” of substantive Brexit negotiations

British Foreign Secretary Dominic Raab said Sunday that talks with the European Union (EU) on post-Brexit trade are entering “the last week or so” of “substantive” post-Brexit trade negotiations.

Calling on the EU to accept a “point of principle” on fisheries, one of the sticking points in the talks, he seemed to reject what is reported to be the EU’s current offer on fishing — to return between 15 to 18 percent of fish stocks currently caught by EU fleets in British water, Sky News reported.

On other outstanding issues, Raab told Sky News that it “feels like there’s progress towards greater respect” for Britain’s position on so-called “level playing field” commitments — a set of post-Brexit common rules and standards.

Britain and the EU resumed face-to-face post-Brexit talks in London on Saturday after a EU negotiator tested positive for coronavirus earlier this month.

The negotiations are in a crucial stage as time is running out for both sides to secure a deal before Brexit transition period expires at the end of the year.

Britain and the EU started their lengthy and bumpy post-Brexit talks in March after Britain ended its EU membership on Jan. 31, trying to secure a future trade deal before the Brexit transition period expires.

Commenting on the coronavirus pandemic and its accompanying economic crisis, Raab said “ought to focus all of our minds on doing everything we can to give the economy a bit of a boost — both on the UK side but also on the continental European side”.

His remarks came as another 15,871 people in Britain have tested positive for COVID-19, bringing the total number of coronavirus cases in the country to 1,605,172, according to official figures released on Saturday.

The coronavirus-related deaths in Britain rose by 479 to 58,030, the data showed.
To bring life back to normal, countries such as Britain, China, Germany, Russia and the United States are racing against time to develop coronavirus vaccines.

Paul Fox, the UK's new Ambassador to Hungary

Read alsoBritish Ambassador to Hungary: UK aims to strengthen ties with Hungary after Brexit

November 29, 2020

Foreign minister: Uzbekistan ‘key partner’ in Central Asia

Uzbekistan is Hungary’s “key economic partner” in Central Asia, Péter Szijjártó, the minister of foreign affairs and trade, said on Friday after a video conference with the Uzbek minister for investment and foreign economic relations.

The Uzbek market is of interest for many Hungarian businesses and they are served well by excellent political relations between the two countries, Szijjártó said.

A “significant” deal was reached last week on simplifying and speeding up registration of Hungarian medicines on the Uzbek market, he said. Referring to Hungarian drug company Richter, he noted that Richter has been present on the Uzbek market for 25 years and 80 of its products have been registered there.

Now, additional drugs are planned to enter the Uzbek market, adding to pharma exports worth 12 million US dollars in the first half of the year, he said.

Also, a Hungarian company financed by Eximbank is supplying 3,000 Hungarian ATMs to Uzbek banks, while preparations are afoot to advance three joint Hungarian-Uzbek investments in the food and farming industries related to cattle breeding, cereal processing and the construction of a vegetable oil plant, he said.

Uzbekistan plans to build a nuclear power plant with the involvement of Russia’s Rosatom, he noted, adding that Hungary will participate in the training of future Uzbek nuclear engineers and specialists. The number of scholarship students from Uzbekistan studying in Hungary will increase to 100 a year from next year, he added.

Szijjártó said Hungary supports Uzbekistan’s talks with the European Union on expanding its partnership agreement as well as the country’s accession to the World Trade Organisation.

He noted that bilateral trade grew by 21 percent in the first eight months of this year.

Read alsoUzbek-Hungarian business forum in Tashkent: Hungary able to export over EUR 100 bn annually

November 27, 2020

Investment volume falls by 12 pc in Q3

Investment volume in Hungary fell by an annual 12.0 percent in the third quarter of 2020, the Central Statistical Office (KSH) said on Thursday.

In a quarter-on-quarter comparison, investment volume fell by a seasonally-adjusted 2.1 percent.

Investment volume fell in most economic sectors but jumped by 98.4 percent in health care due to pandemic-related spending, KSH said.

The decline in investment volume was most apparent at companies with high headcounts, especially at foreign-owned and state-owned companies.

In Q1-Q3, investment volume fell by an annual 8.6 percent, albeit from a high base.

Trade investments rose by 6.3 percent and investments in information technology by 3.4 percent, while investments in public administration edged up by 2.1 percent.

Investment volume in the manufacturing sector was down by 18.2 percent.

In absolute terms, investments came to 2,504.3 billion forints (EUR 6.9bn) in Q3, including 607.1 billionn in the manufacturing sector, 437.4 billion in real estate and 381.9 billion in the logistics sector.

Hungarian employers want to freeze the minimum wage

Read alsoPost-pandemic growth could boost Hungary development, says US consultancy firm McKinsey

November 26, 2020

Turkish Cargo makes Budapest Airport its Eastern European hub

Turkish Cargo, one of the largest cargo airlines in the world, has announced that it is increasing the frequency of its dedicated cargo flights on the Budapest route to four a week in the winter season, and the airline will open the offices of its Eastern Europe Regional Directorate at the BUD Cargo City. This will further increase the international significance of the BUD Cargo City, which has proven immune to the pandemic. The air cargo hub plays the role of an indispensable, strategic facility in the region for the national economy.

Air cargo is a sector of strategic importance, both for Budapest Airport and the national economy. The airport operator is therefore continuously working to ensure that the BUD Cargo City, its world-class cargo hub handed over in January, should become the aerial gateway of the country and of Central and Eastern Europe. The approximately 32 600 m2 facility and the adjoining apron suitable for handling code F aircraft provide an excellent environment for Budapest Airport’s partners participating in the handling of air cargo. This is demonstrated by this year’s cargo performance; in spite of the coronavirus pandemic, the BUD Cargo City has been operating at full capacity in 2020, providing all necessary conditions for the cargo community, the airlines, ground handlers, the government and the authorities, for seamless cargo operation and the efficient handling of the pandemic.

Budapest Airport achieved this outstanding result with excellent partnership and cooperation, by working together with its numerous long-term partners and new cargo airlines. Turkish Cargo, one of Budapest Airport’s long-term partners and one of the largest cargo airlines in the world, has announced that it is increasing the frequency of its dedicated cargo flights on the Budapest route from three to four a week, and it will open the offices of its Eastern Europe Regional Directorate in Budapest.

The flights operate on the Istanbul-Budapest-Istanbul route, enabling Budapest-based cargo to access the world’s largest cargo network through the airline’s hub, and to create approximately 95 additional cargo connections from Istanbul.

“We are delighted in welcoming this decision by our outstanding partner, Turkish Cargo, to establish its regional office in the Hungarian capital and to increase its cargo capacity to four a week at Budapest Airport. The cargo team at Budapest Airport is continuously working to make the BUD Cargo City the cargo gateway for Central and Eastern Europe and Hungary, for which developments by our international partners are indispensable. We wish Turkish Cargo a lot of success for the future in Budapest and the CEE countries as well,” said Dr. Rolf Schnitzler, the CEO of Budapest Airport.

„Having an attractive location from the viewpoint of the logistics and trading companies, Budapest (BUD) became the main hub for Turkish Cargo, with the newly established Eastern Europe Regional Directorate office here. This regional directorate office coordinates the cargo sales activities of 21 countries, based in Budapest. Additionally, along with long-standing, great cooperation with Budapest Airport, Turkish Cargo enhanced service quality and demonstrated a sustainable achievement thanks to its mission, namely, “raising the bar”. Turkish Cargo expands freighter capacities at BUD in the 2020 winter season, by launching a fourth frequency, with A330 cargo Aircraft, as of 8 November,” Turkish Airlines announced.

In spite of the global challenges caused by the coronavirus pandemic, cargo traffic at Ferenc Liszt International Airport is operating seamlessly and developing continuously. The number of dedicated cargo flights increased by 18 percent in 2020, compared to the same period in the previous year. Numerous new scheduled cargo flights operate to Ferenc Liszt International Airport, and several airlines have increased their cargo capacities on their flights to Budapest. Cargo traffic at Budapest Airport has remained strong in 2020; the BUD Cargo City handled 107 076 tons of air cargo from January to October, which is a good result, even on a global scale.

While cargo traffic has stalled almost completely at some airports, the Hungarian capital airport only registered a 10,3 percent reduction compared to last year, and the number of cargo flights increased by 16.7% to 5007 flights handled in 2020.

Following the first wave of the coronavirus pandemic, the BUD Cargo City was prepared for the medical supplies arriving during the second wave, and commenced preparations to provide the conditions necessary for the transportation and the storage of the vaccine. An ideal environment and cooperation, based on information sharing and a detailed action plan, with the involvement of experts, ensures that Budapest Airport is ready to support Hungary and the CEE region in the fight against the pandemic.

Read alsoBudapest Airport: These routes will NOT cease in the coming weeks

November 15, 2020

Will there be any chaos in Hungarian stores again after the restrictions?

The latest restrictions in Hungary also affect the opening hours of the stores.

Although the exact rules are not yet known regarding the restrictions. The shops, inlcuding grocery stores, will certainly have to close at 7 pm on Wednesday. The main secretary of the National Trade Association, György Vámos, made a statement to napi.hu. He said the companies have already started preparing. He also said that the store chains have a large stock of goods, so there is no need to worry about a shortage.

In order to curb the epidemic, prime minister Viktor Orbán announced further restrictive measures on Monday. The operational staff has already made proposals for action. According to the prime minister, shops (including hairdressers and craft service providers) should close at 7 pm. This also applies to the stores of chain stores with the most extensive network. As the tightening will take place from midnight on Tuesday, the shops will have to close at 7 pm on Wednesday. The more precise rules are expected later.

György Vámos, the main secretary of the National Trade Association, – representing among others Aldi, Auchan, Mol, Obi, Lidl, Media Markt, Spar, Tesco, Rossman, Spar, Praktiker and Penny Market- said on Monday:

“Although the specific legislation has not yet been published, chain stores will follow all the rules and have already started preparing after the announcement. The transition will be smooth. Besides, the companies are prepared for the next period, they have abundant goods, product base and supply.”

György Vámos highlighted the appropriate product range because in the first wave, the turnover of store chains increased explosively before the epidemic appeared in Hungary, at the end of February and during the spring curfew, and mainly due to logistical reasons, some products ran out of the store. Gabriella Heiszler, CEO of Spar, said apropos of the situation seen in the first wave back this summer: The onset of the pandemic posed a significant challenge for Spar as demand jumped abruptly and explosively, making it difficult to deal with the usual levels of goods. At the same time, according to her, not only Spar but all store chains and traders have proved that they are able to supply the Hungarian population with food even in difficult times.

Coronavirus: Hungarian parliament votes to extend state of emergency

During the spring shopping fever, Minister of Agriculture, István Nagy spoke about the fact that Hungarian agriculture and the food industry produce many times more than the country can consume.

The National Chamber of Agriculture also announced in the spring that Hungarian agriculture and the food industry could continuously provide the quantity needed for demand.

Gabriella Heiszler also said in her summer statement that Spar is increasingly preparing for the fall and has a list of a few hundred essential items from which they made extra. According to market information and the words of György Vámos, the competitors also did so and are prepared for the rest of the year. The CEO of Spar also said earlier that she hopes customers are now aware that there is a steady supply of food and that retailers can provide sufficient supplies and therefore will not arrive in huge waves.

Many customers agree with this; this is already evident from the representative opinion poll conducted by Pulzus kutató in October. According to the survey, 50 per cent of Hungarians believe that there will be no buying bout because people learned from the situation in the spring when there was a temporary shortage of some products in several stores. Respondents say people are buying more soberly these weeks. It is true, however, that a third of those surveyed — 29 per cent — can imagine panic purchases if exit restriction came into effect again.

November 11, 2020

Hungary to make sniper rifles

HM Arzenál Zrt., a company under the Hungarian Defence Ministry, will continue to make Unique Alpine AG’s sniper rifles and hunting guns in its factory in Kiskunfélegyháza.

According to Index, Gáspár Maróth, the government commissioner for armed forces development, said before signing the relevant German-Hungarian industrial cooperation agreement that the Bavarian company will transfer not only the production facilities to Hungary but also its research and development units. The HM Arzenál Zrt. and the Unique Alpine AG

have been developing new weapons for one year.

He added that key players in the sector are already interested in the new products of the two companies. Furthermore, the police, the prison services, the military, and the National Tax and Customs Administration of Hungary will also buy the new weapons made in Kiskunfélegyháza.

Maróth stated that the investment can play a key role in the development of the Hungarian economy. The factory showed its newest TPG-3 sniper rifle made by Bavarian engineers and Hungarian developers for a Canadian tender and the AR–10 NX and AR–15 NX semi-automatic rifles allowing

more accurate targeting than other products in their category.

HERE we wrote about six weapons made by Hungarians trying to introduce our readers to Hungarian inventions or products that might be less known. Some of them were only prototypes, but others have even influenced the conduct of modern warfare.

The emergence and number of the Soviet armoured vehicles and heavy tanks in 1942 incited the production of Hungarian anti-tank missiles, as at that time, the Germans were reluctant to hand over the blueprints of their own panzerfaust. The missile department of the Institute of Military Technology embarked on the development of two types. The smaller was the 60mm diameter 44M anti-tank hand-held missile launcher, the larger was the 215mm 44M mace projectile, which was

the first known heavy anti-tank missile in the world,

with a charge of more than four pounds. It had its own portable dual launcher that could be operated from a truck-bed or the ground. Hungary was the third state in the world – only after the Third Reich and the US – to build deployable anti-tank missiles.

The Turán was a Hungarian medium tank

developed during WWII. It was inspired by and used solutions from the Czechoslovak Škoda T-21 medium tank. The Turán was produced in two main variants: the 40M (or Turán I) with a 40mm gun and the 41M (or Turán II) with a 75mm gun. There was also a prototype variant, the 43M (or Turán III).

In total, only 424 were made. The Turáns were employed by the 1st and 2nd Hungarian Armoured Divisions, as well as the 1st Cavalry Division, in 1943 and 1944.

There is only one known surviving Turán tank,

which is a Turán II on display at the Kubinka Tank Museum.

Featured image: illustration

November 9, 2020

Orbán: Hungary is commited to cooperation with China

Leaders have the dual responsibility to protect lives and people’s health while keeping their countries functional during the coronavirus pandemic, Prime Minister Viktor Orbán said in a video message to the China International Import Expo on Thursday.

At the event held online this year, Orbán noted the pandemic presented enormous challenges to health-care systems as well as the economy.

Although Hungary is integrated into the West, it has strong historical, cultural, economic and political ties to the East, he said, adding that Hungarians were “unsurprised” when the region’s importance on the global stage skyrocketed.

In the critical phase of the first wave of the pandemic, “the whole world queued up” for China’s medical equipment, he said, thanking China for the 185 plane-loads of essential medical supplies delivered to Hungary in that period.

The prime minister said the pandemic had sparked global competition in the re-distribution of production and service capacities.

Orbán noted Eastern countries funded 45 percent of global investments last year, up from 17 percent ten years ago.

Hungary’s success in competing globally was partly thanks to its policy of opening to the East, which the government embarked on ten years ago, he said. In the past decade, Hungary’s trade volume with the region has grown by 25 percent. In 2019, 60 percent of Hungary’s foreign investments and 40 percent of new jobs came from eastern investors, he said.

Addressing Chinese President Xi Jinping, Orbán said Hungary was committed to cooperation with China and other partners of the Belt and Road initiative, which is “more relevant now than ever”.

“The pandemic is forcing us to pool our resources and efforts to live up to one of the greatest challenges of our time,” he said.

The 3rd China International Import Expo runs between November 5 and 10.

Read alsoCIIE: China’s promise and practice of opening-up

November 6, 2020

CIIE: China’s promise and practice of opening-up

The China International Import Expo (CIIE), hailed as “an innovation in the history of global trade,” opened its third edition in this Chinese trade hub on Wednesday.

As the world’s first import-themed national-level expo, the CIIE embodies China’s solemn promise to opening-up, and epitomizes its firm commitment to supporting economic globalization and building an open world economy.

At a time when the COVID-19 pandemic is still raging on and the world economy is tottering along, China’s steadfast promise and practice of opening-up resonate with and buoy up all those dedicated to battling the coronavirus, boosting common development and building a brighter future for humanity.

Going from strength to strength since its birth, the CIIE demonstrates China’s unfaltering determination to open wider to the world no matter how the external situation changes.

The CIIE came into being a decade after the 2008 global financial crisis, as the world economic recovery was losing steam, trade protectionism and unilateralism were on the rise, and economic globalization was facing strong headwinds.

Global trade is an important engine for world economic growth. When the world economy was facing severe challenges, China, as the world’s largest trader of goods, voluntarily set up the CIIE as a platform for businesses around the world to further tap its enormous and growing market. According to a 2018 estimate, China was expected to import more than 30 trillion and 10 trillion U.S. dollars’ worth of goods and services respectively in 15 years.

Over the past two years, the CIIE has grown into a key channel for products worldwide to find their way into the Chinese market. Official statistics show that tentative deals worth about 57.83 billion and 71.13 billion dollars were reached at the previous two editions respectively.

Along with China’s concrete moves to foster a world-class business environment and deepen bilateral and multilateral cooperation, the CIIE has not only testified to China’s unflinching commitment to ushering in a new round of high-level opening-up, but also manifested its sense of responsibility as a major country to share its development opportunities and shore up the world economy.

The opening of the latest CIIE also clears up the doubts about China’s opening posture arising from China’s efforts to form a new development pattern that features the domestic market as the mainstay with domestic and international markets reinforcing each other.

The “dual-circulation” model does not mean that China will run its economy behind closed doors. Rather, China will only open its doors even wider.

“Our aim is to turn the Chinese market into a market for the world, a market shared by all, and a market accessible to all,” Chinese President Xi Jinping said in his keynote speech via video at the CIIE opening ceremony late Wednesday. “This way, we will be able to bring more positive energy to the global community.”

Rolled out as scheduled every year, the CIIE attests that China honors its promise of opening-up with concrete actions to share the dividends of its development with the rest of the world and bolster shared growth.

Over the past four decades, China has been striding resolutely forward along the path of reform and opening-up regardless of the vicissitudes on the global landscape. That path not only suits China’s development needs but accords with the trend of the times in this age of globalization.

As Xi said at the opening ceremony of the first CIIE, “openness has become a trademark of China.” The president pointed out that “China has grown by embracing the world, and the world has also benefited from China’s opening-up.”

China has for long been making relentless efforts to expand opening-up. It has set up a number of special economic zones (SEZs), including the Shenzhen SEZ, and established more than 20 pilot free trade zones across the country. It has been hosting a series of major trade events including the CIIE, the 63-year-old Canton Fair and the China International Fair for Trade in Services (CIFTIS). And it has also enacted a new foreign investment law.

China unswervingly follows a win-win strategy of opening-up, through which the country can draw strength from the world and better benefit the world with its development, Xi said in his speech last month at a grand gathering to celebrate the 40th anniversary of the Shenzhen SEZ, the forefront and a symbol of China’s opening-up.

Since the 2008 international financial meltdown, China’s imports have contributed one sixth of the global import increase and served as a key booster and anchor of the global economic recovery. A report released by China’s Ministry of Commerce earlier this year shows that China has been the world’s second largest import market for 11 consecutive years, accounting for more than 10 percent of the world’s total imports.

Meanwhile, China has now become the largest trading partner of more than 120 countries and regions. It has signed 200 cooperation documents with 138 countries and 30 international organizations and carried out more than 2,000 cooperation projects within the framework of the Belt and Road Initiative.

Besides building closer economic and trade partnerships, which have brought tangible benefits to both China and its partners, China has also been working with other countries to address the imbalances and inequalities in global economic and social development, improve the world’s economic governance system, and make economic globalization more inclusive and balanced.

In her speech at the first CIIE, Christine Lagarde, then managing director of the International Monetary Fund (IMF), said the CIIE is a symbol of China’s efforts to build “a bridge to the world,” “a bridge to prosperity” and “a bridge to the future.”

Defying the multi-pronged onslaught of COVID-19, the CIIE not only showcases China’s substantial progress in epidemic containment, but offers much-needed hope for the world’s post-pandemic growth and development.

Upholding the principle of putting people’s lives first, China has put up a resolute and tough fight against the novel coronavirus and placed the epidemic under effective control, laying a solid foundation for the resumption of work and production as well as the return to normal life.

Accordingly, China’s economy is bouncing back, registering growth for two consecutive quarters. China, according to an IMF estimate in October, is expected to record an economic growth of 1.9 percent in 2020, emerging as the only major economy in the world that can inch back into positive territory this year.

Committed to opening-up and sharing its development opportunities, China has in recent months held multiple large fairs, including the 2020 CIFTIS in Beijing, to reanimate global trade and help pull the world economy out of the COVID-19 crater. In doing that, China has also accumulated valuable experience in organizing offline events amid regular epidemic control measures.

To ensure the public health of the ongoing CIIE, such rigorous measures have been put in place as complete nucleic acid testing, stringent inspection and quarantine procedures, and standardized sampling of imported cold-chain food. Since February, the organizers have also introduced “cloud registration,” “cloud signing” and “cloud presentation” to better serve exhibitors during the pandemic.

Thanks to the safety guarantee and the prospect of new business opportunities, enterprises worldwide have exhibited unprecedented enthusiasm for and confidence in the latest expo. According to the organizers, the exhibition area this year far exceeds that of the previous edition.

Particularly, to meet the soaring needs of public health equipment and solutions, the CIIE has also designated a special subsection to public health and epidemic prevention this year, so that more than 300 exhibitors can introduce their masks, protective gears, test reagents, ECMO devices and breathing machines to customers both in China and around the world.

In today’s world, where the international division of labor has intertwined different economies into complex global supply chains and value chains, the development trajectories of countries across the world have become closely interdependent like never before.

And the COVID-19 pandemic, as Xi noted at the general debate of the 75th UN General Assembly in September, “reminds us that economic globalization is an indisputable reality and a historical trend.” “Burying one’s head in the sand like an ostrich in the face of economic globalization or trying to fight it with Don Quixote’s lance goes against the trend of history,” he added.

With an open mind and a dream for development, entrepreneurs from all corners of the globe are gathering in the four-leaf clover-shaped National Exhibition and Convention Center in Shanghai, yearning for luck and success in the world’s most populous consumer market.

As long as all countries stand on the right side of history and work together to safeguard free trade and the multilateral trading system, foster an innovative and inclusive world economy and build a community with a shared future for mankind, forging a better future for all will not be a matter of luck, but just a matter of time.

November 5, 2020

Hungarian, Austrian presidents confirm dedication to preserving good neighbourly ties

President János Áder and Austrian counterpart Alexander Van der Bellen confirmed their respective countries’ dedication to preserving good neighbourly relations at their meeting in Vienna on Friday.

Áder said at a joint press conference that preserving good neighbourly relations also helped mitigate the effects of the novel coronavirus epidemic.

He said Austria was Hungary’s second most important trading partner and the third most important investor in Hungary. He added that great losses were suffered in tourism in both countries as a result of the epidemic, with the majority of hotels “empty” in both Budapest and Vienna.

Áder commented on a government coalition agreement between the Austrian People’s Party and the Greens signed at the beginning of this year which includes Austria’s plans to become climate neutral by 2040, ten years earlier than the European Union target.

Áder welcomed this and said it was an ambitious undertaking but it raised certain questions. He noted that between 1990 and 2018, Austria increased greenhouse gas emissions by 10 percent while Hungary decreased emissions by 30 percent. He added that annual emission was 9 tonnes per capita in Austria and 6.5 tonnes in Hungary and added that he would be eager to see Austria’s progress hoping that Hungary could also learn from it.

He said that Austria and Hungary held different opinions regarding the use of nuclear energy in the past several years. Austria considers it undesirable while Hungary believes it indispensable in order to meet the climate targets, he said.

“I can understand Austria’s position but I’ve asked them to also understand the Hungarian position” considering the difference in the natural environment between the two countries, he said. Hungary has less woodland and waters, so it must look for other solutions in order respect environmental considerations and at the same time fulfil the demands of the public and industries, he added.

“Even if we cannot convince each other, we can repeatedly re-assess our approaches” and adjust them, which will be a very good precondition for personal and mutual respect and good neighbourly relations, he said.

Áder was asked whether he “regretted” signing in 2017 the Hungarian higher education law that “terminated the operation of Hungary’s strongest university, the Budapest Central European University (CEU)”.

Áder responded saying that he “strongly contested” CEU’s branding as Hungary “the strongest university”. The law he said was aimed at ensuring that the CEU would work under the same conditions as another five foreign universities, adding that CEU still had courses in Hungarian and issued degrees.

He said it was misleading to say that CEU has moved to Vienna, adding that only graduate trainings for receiving a US university degree have moved to Vienna.

Van der Bellen highlighted diverse and close political, cultural and historical relationship between Austria and Hungary. He noted that around 50,000 Hungarians are working in Austria, primarily in the health-care and tourism sectors.

The Austrian president underlined the importance of cooperation which provided a framework to resolve cross-border issues.

Read alsoBreaking news – Hungarians are allowed to travel to Austria with no restrictions

October 30, 2020

New regular air service to start between China, Hungary

A new air service is operating between Zhengzhou and Budapest three times a week to help relaunch fast and unhindered trade between China and central Europe, an official of the ministry of innovation and technology said on Wednesday.

The first flight operated by Universal Translink Airline (UTA) has already landed in Liszt Ferenc International in Budapest, State Secretary Tamás Schanda said in a statement. The service will help the acquisition of products from China for protection against the novel coronavirus and also provide access for Hungarian companies to the Chinese markets, he added.

The flights will start from Zhengzhou and the return services from Budapest will enable the transport of Hungarian goods to the Far East, he added.

There will be three weekly flights between October 2020 and the end of 2021 and an additional fourth service will operate between early November and late January.

During the entire period, a total of 170 flights will be in service between China and Hungary.

As we wrote yesterday, Chinese telecommunications giant Huawei is setting up a research and development centre in Budapest, details here.

Read alsoGigantic investment: Chinese carmaker to come to Hungary

October 21, 2020

The United States is the biggest non-European investor in Hungary

The United States is the biggest non-European investor in Hungary and also its biggest non-European export partner, Finance Minister Mihály Varga said after attending a business forum of the American Chamber of Commerce in Hungary on Monday.

About 1,700 US companies employ around 106,000 people in the country and 14 of the Hungarian government’s strategic partners are US-owned, the minister said. Bilateral trade grew by 2.3 percent to 5.8 billion dollars in 2019, he added.

Early this month, the US-Hungary Business Council was informed about ongoing talks on

investment projects that US companies are planning to implement in Hungary,

Varga noted.

Figures from the National Bank of Hungary (NBH) show the total value of US investments came to 11.6 billion euros.

Varga said the government agreed on 101 large investments with foreign and Hungarian companies in 2019, with a combined value of 1,705 billion forints (EUR 4.7bn), or 4 percent of the country’s GDP last year. The government supported these investments with grants worth 156 billion forints.

Hungary continues to have an excellent investment ratio,

at 27.6 percent in the second quarter of 2020, Varga said.

October 19, 2020

Never seen drastic increase in prices of tea in Hungarian stores

The prices of filtered teas in Hungary has been changing rapidly in 2020. Regarding some products, no changings happened, but in several other cases, companies decided to make them more expensive. The increase is equal to a six or even seven years-long procedure.

Iconic Hungarian soft drink ‘Bambi’ to re-enter market in a new form

Pénzcentrum reported that the well-known Ceylon typed tea filters have become more expensive between 2015 and 2017 by 24%. After 2017, no changes happened, but this year the increase was so rapid and unexpected that statistics could close their eyes on them. One of the most well-known brands, Pickwick, increased the prices of their tea types instantly, and many costumers who were permanent consumers of the brand have decided to look for other brands. The average price of Pickwick tea was less than 1 EUR when the coronavirus epidemic started.

Now, statistics have found that in leading Hungarian supermarkets, there are examples for offering Pickwick tea for 1.5 EUR, which is considered to be a major increase on the market. This means an increase of 33% but even 43% in a few months.

The reason for the increase is the coronavirus epidemic and the restrictions introduced, the poor condition of Hungarian Forint on the economic market and the hardship of getting the ingredients for the filters. Many stores, from Lidl, Spar, Tesco and Auchan, confidently reported that the inflation had reached the industry more dragging tea into the circulation.

According to statistics, more than 82% of Hungarian families buy tea regularly. The most common and popular ones are classic black and green teas, but fruit and ginger teas are also very common in Hungarian households.

Hungarians got familiar with tea in the 18-19 century when it was first imported into the country from Germany through Vienna. It became prevalent in a short time, and one teahouse opened after another, especially in Budapest. Hungarians usually drink tea alone, especially during cold seasons and when they catch a cold or flu. Still, it is also frequently served when guests come over or at family occasions alongside coffee, cake or biscuits.

Read alsoFood, tobacco prices lift Hungary consumer price index by 3.8 pc in July

October 17, 2020