The Czech Government is fully aware of the extraordinary significance that external economic relations, and trade promotion especially, have for the development of the national economy. The Government considers dynamic export growth to be an
effective factor benefiting GDP growth and narrowing the gap between per capita GDP in the Czech Republic and the European Union.

The Government also believes in the importance of export for increasing competitiveness. Experience from EU member states shows that exporters achieve a higher labour productivity, higher employment rates, higher wages, and better managerial habilities than non-exporting firms. For this reason, the Government approved the Pro-export Policy Concept for 2003-2006 in February 2003, in accordance with its Programme of August 2002.

Important areas of the Czech pro-export policy include state-supported export financing and insurance. In the Czech Republic, these activities are carried out by the Export Guarantee and Insurance Corporation (EGAP) and the Czech Export Bank.
Great attention is also paid to support of exporters in the areas of information technology, consultancy, and assistance. In this context, mention should be made of the activities of the Czech Trade Promotion Agency/CzechTrade, the most important
agency for the implementation of pro-export policies. Its purpose is to promote exports and to increase the competitiveness of Czech businesses abroad, with a clear emphasis on small and medium-sized enterprises. The Agency has 30 foreign offices in 27 countries worldwide.

Part and parcel of the system of state export support, and a very important one at that, is the promotion and presentation of Czech products and exporters abroad. This major pro-export instrument is safeguarded by the Czech Ministry of Industry and Trade, which is at the same time in charge of the entire national pro-export policy.
Following EU accession, the Czech Republic began to exercise its right to draw resources from the Structural Funds. When, on 12 May 2004, the areas for support were identified within the Operational Programme Industry and Enterprise, one of the
five operational programmes in the Czech Republic, few people could guess at the speed and success with which both Czech entrepreneurs and the Ministry of Industry and Trade and its agencies would be able to cope with the pitfalls of this entirely
new system of European funds utilization. Czech entrepreneurs, however, displayed the ability to adapt swiftly to the changed conditions governing state aid; the number of submitted projects serves as proof thereof. Within less than 10 working days
after the start date for submission of applications (1 July 2004), the number exceeded the first one hundred, and by the end of 2004 it surpassed one thousand, the total amount requested in aid exceeding CZK 7 billion.
In conclusion, let us mention some basic data on foreign trade. In comparison to 2003, exports grew last year by 23.8 percent, to CZK 1 696.7 billion, and imports increased by 19.2 per cent, to CZK 1 717.3 billion. The overall deficit of CZK 20.6 billion, the lowest since 1993, was CZK 49.2 billion below the 2003 figure. The balance development was favourably influenced to a decisive extent by trade in machinery and transport equipment (growth of surplus by CZK 69.4 billion). In contrast, the surplus
on trade in industrial consumer goods fell by CZK 4.8 billion.

The exceptionally good foreign trade results, which gained deserved respect in 2004, continued in 2005 as confirmed by the January 2005 figures. The trend of high export and import dynamics continued, following the acceleration upon the Czech Republic’s accession to the EU in May 2004. Although there exists no exact quantification of the extent to which the state pro-export policy influences export performance, the positive
export results for 2004 should serve as encouragement to all bodies involved in the implementation of individual instruments and measures.

Ministry of Industry and Trade