Global Ambassador's Journal Vol 3, Issue 2 June 2019

EU structural funds for the
development of sectors and regions as
well as the possibility for Czech citizens
to move freely among other member
states of the EU. Trade barriers were
removed.
Today, the Czech Republic is one
of the most developed countries in
central and Eastern Europe. As a
member of the EU, the country plays
an active role in the single market and
EU economy. The Czech Republic uses
its own currency (the Czech Crown –
CZK) and meets all requirements for
transitioning to the Euro, for which a
date has not been set.
In 2018, GDP growth continued
with a 3% increase. The unemployment
rate in the Czech Republic is currently
(April 2019) the lowest in the EU at
1,9% and the level of poverty is the
third lowest amongst OECD countries
(behind Iceland and Denmark). The
Czech Republic is placed 24th in the
index of economic freedom and the
index of global innovation. It sits 29th
in the global competitiveness rankings
and 30th in the ease of doing business
ratings. The largest trade partner
for import and export is Germany,
followed by other EU countries.
The Czech Republic has a very
diverse economy, which placed 9th in
the economic complexity index in 2017.
Services form 60% of the economy,
industry 37.5% and agriculture
forms the remaining 2.5%. The main
industrial activities are in advanced
technologies, automotive industry,
engineering, steel manufacture,
transport equipment chemical
manufacture and pharmaceutics. In
the area of research and development,
nanotechnology and bio and medical
science, the Czech Republic is a strong
global leader.
Economic diplomacy plays a pivotal
role in overcoming developmental
challenges in a globalized world.
Its main task is to promote the
government’s trade policies with other
countries. The key tools for this are
various forms of support for exporting
and foreign direct investment as well as
fostering the investments of national
entities abroad. An integral part of this
is the promotion of a positive image of
the country worldwide, which aids the
realization of economic and business
interests.
The Czech Ministry of Foreign
Affairs and the Ministry of Industry
and Trade are both involved in
promoting economic diplomacy of
the Czech Republic. Amongst them, a
framework agreement of cooperation
was signed to ensure continued
support. It divides the competences
between the two ministries in the
field of economic relations with
foreign countries. In addition to the
Ministry of Foreign Affairs and its
embassies, the Ministry of Industry
and Trade, along with CzechTrade
and CzechInvest, the Ministry of
Regional Development and its agency
CzechTourism also belong to the
network of institutions supporting
Czech export. Furthermore, the
Czech Development Agency and
Czech Centers Abroad also aid in their
endeavors. These institutions form
a global network whose joint efforts
carry out a wide range of economic
diplomacy activities.
The Ministry of Foreign Affairs and
the relevant section led by the Deputy
Minister plays an important role in
economic diplomacy. In cooperation
with the Czech Ministry of Industry
and Trade and the CzechTrade Agency,
the Client Center for Export has been
set up to offer Czech companies the
opportunity to access information
about country-specific export
opportunities. It also publishes a yearly
“Map of Industry Opportunities”,
bringing an overview of export and
investment opportunities around
the world. The key activities of
Czech economic diplomacy include
organization and participation in
professional presentations, business
forums, seminars, exhibitions and fairs,
round tables, and business missions
organized both to and from the Czech
Republic.
The global network of Czech
Embassies is greatly utilized in these
activities. Each Embassy has at least
one diplomat, who responsible for
economic diplomacy activities in the
given country. Their activities further
the trade policies set out by the
Ministry of Foreign Affairs, with room
for creative solutions in all areas of
activity aiming to effectively promote
the economic interests of the Czech
Republic.
The Embassy of the Czech Republic
in Dublin is one of the smaller offices,
nevertheless, economic diplomacy is
a key role in its activities. The office
is in contact with business entities in
both the Czech Republic and Ireland,
trying to respond to their demands and
provide them with an appropriate level
of service to help establish contact or
organize meetings of representatives
of both countries. The Embassy
organizes seminars, workshops and
conferences both independently
and in cooperation with the London
offices of CzechTrade, CzechInvest
and CzechTourism. Possibilities of
cooperation between the two countries
in joint market entry to 3rd markets are
also sought.
The Embassy has recently organized
a number of events highlighting
Irish investment opportunities in the
Czech Republic. Also important is the
introduction of the country as a tourist
destination and the provision of spa
and health services for the treatment
of Irish patients. The organization of
cultural and social events also helps to
promote the Czech Republic to the
public and the media.
One of the most successful
economic diplomacy events organized
by the Dublin Embassy was the Water
and Energy Conference, organized
in partnership with Trinity College
Dublin and Irish Water. At the event,
many Czech and Irish companies
have established contacts which have
already resulted in the implementation
of specific projects on the Irish market.
Several seminars were dedicated to
tourist destinations, such as Alternative
Cities in the Czech Republic or Czech
Spas and Health Tourism. An event
with great impact on the Irish public
was last year’s Škoda Czech Fashion
Show - a show of leading Czech
designers and accompanying events,
where both economic and cultural
activities were combined. As the event
raised considerable interest, it is set
for a reiteration later this year. Other
upcoming events include the Czech -
Irish Smart Building Summit, where
Czech environmental companies will
present themselves to the Irish market
for the first time, promoting their
cutting edge technologies.
The methods, forms and tools
of the Czech Republic’s economic
diplomacy are constantly improving
and deepening. An important role is
played by individual embassies in their
relevant countries as they seek new
opportunities in promoting Czech
interests across the world.
16 Global Ambassador’s Journal | Vol. III, Issue 2, June 2019