How It All Started
Czech Republic is just one of the two nations resulting from the split of Czechoslovakia. Together with Czech, Slovakia is the other half of the division of the former republic in central Europe. The dispute between the Czechs and the Slovaks led to Czechoslovakia's partition in 1993. As part of then prosperous Czechoslovakia, Czech Republic enjoyed the fruits of hard-earned labor. The level of its economic development was among the highest in central and eastern Europe. However, the performance of the economy was hampered by the high degree of centralization and political interference in economic life that characterized the Communist period. Communist leaders copied Soviet economic practice and organization when they came to power in 1948. They emulated Soviet emphasis on heavy industry, mining, and manufacturing. They neglected agriculture and light industry. Agriculture, although almost entirely collectivized, performed fairly well in the last years of Communist Rule. Manufacturing and other branches of industry were handicapped by obsolete equipment, aging industrial plants coupled with shortages of raw materials, energy and even labor resources. Although Czechoslovakia did not experience the acute economic crises of countries such as Poland, the standard of living for its population stagnated during the late 1970's. Political leaders acknowledged the need for economic reform but only a little portion was accomplished before 1989. Under the post-Communist governments, measures have been enacted to privatize industry and agriculture and to facilitate foreign investment. Plans have been made to change trading patterns which until 1989 were heavily oriented to the Soviet Union and other socialist countries. It also planned to reintegrate the two republics into the world economy. Now standing apart from Slovak Republic, Czech Republic paved its way into the world scene. It had brought with it the kind of strength posed by its mother nation. With high regard for international business, the Czechs began lifting themselves by trading with other powerful nations. This is where the United States came in the way. Despite its split from the Slovak Republic, the US had always helped Czech Republic culturally, economically and politically. Major Trade Between the US and Czech Republic After the historical division of Czechoslovakia, Czech Republic was not left lagging behind. In fact, it even gained enough recognition for itself. As proof to this, it was declared as the first post-Communist country to receive a remarkable international credit rating which comes from international credit associations. The Czech governments have welcomed US investment on its grounds. Foreign investment successfully boomed from the support of other Western as well as Asian Nations. For the year 2008, at the end of July, the US Census Bureau showed a remarkable trade between the US and Czech Republic. Exports from US totaled $926 million while imports to Czech Republic amounted to $1.75 billion. For the year 2007, the following data were recorded:
Czech Republic could be considered as one of the babies of the World Trade Organization (WTO). With merely 15 years of its stint as an independent nation from Slovak Republic, it could be said that support would be necessary especially when it comes from developing countries. Considering its trade relations with the United States, treaties were also essential. Just like any other bilateral investment treaty entered into by a member of the European Union with that of US, the Czech Republic Bilateral Investment Treaty attempts to reduce if not eliminate the conflicts between the standards of EU and the US laws. Originally signed in October 22, 1991 for Czechoslovakia, it was amended in May 1, 1994 to serve specifically Czech Republic. Accordingly, it focused on the following areas:
Czech Republic is still on the verge of accomplishing things in international trade. Because of its prospering relationship with the US, there were some issues connected between the trade of the two. Military concerns must have contributed a lot to the scenario and whether or not they could contribute to trade barriers is still left unanswered. Another hindering plan comes from the European Union's struggle to conquer the international trade scene. With its efforts, it had started building bridges between the friendships of Czech Republic and the United States by means of encouraging the former to join forces with Slovak Republic for a joint military unit. This was EU's own way of reacting rapidly to international demands on military warfare. The Future of US and Czech Republic There may be a disparity which may cause the flourishing trade between the US and Czech Republic to stop. However, there are other forces in the community which contributes to a more convenient and trusted relationship. In reality, a certain non-government organization was formed. This is called the American Friends of Czech Republic (AFoCR). This was established to foster ties in all areas from business and trade down to other essentials such as security, education, diplomacy and culture. The AFoCR's core values are founded on the improvement of friendship between the people of both nations. This private organization attempts to educate U.S. government leaders and even the media and other opinion-oriented individuals about the immediate needs and goals of the Czech Republic people. With this kind of organization which naturally bloomed from the alliance of these individuals, the future offers something bright. The AFoCR should bear the fruit and be given due credit for its participation in building a better foundation to the trade relations between the United States and Czech Republic. US-Czech Republic Trade References
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