OREANDA-NEWS. September 15, 2009. Belarus and Hungary should switch from simple forms of cooperation (trade in goods) to the implementation of joint projects, Deputy Prime Minister of Belarus Andrei Kobyakov said as he met with Janos Veres, Hungary’s Government Commissioner Responsible for Eastern Economic Relations, co-chair of the Belarusian-Hungarian intergovernmental commission for economic cooperation, reported the Official website government.by.

The promising cooperation areas include machine building, agriculture and woodworking, Andrei Kobyakov said.

The Vice-Premier assured Hungarian businessmen that Belarus will carefully study all the proposals voiced during the first session of the Belarusian-Hungarian commission for economic cooperation.

“The Belarusian side is interested in the implementation of joint projects with Hungarian enterprises, for example, between Alfa Busz and MAZ. We believe that the joint product will be popular among foreign consumers,” Andrei Kobyakov said. He underlined that Belarus views the cooperation with the Dimarson company very important, too. The company is interested in arranging supplies of Horizont LCD TV sets and microwaves to Hungary and Romania.

There is significant cooperation potential in the tourism area, too.

According to Andrei Kobyakov, the Belarusian-Hungarian agreement on the mutual investment protection is essential for the successful implementation of joint projects. He also suggested enhancing the role of the regional contacts in promoting the bilateral cooperation.

Belarus and Hungary will soon sign an agreement on the mutual protection of investments, Hungary’s Government Commissioner Responsible for Eastern Economic Relations Janos Veres said.

“It is necessary to work out the text of the investment agreement and sign it as soon as possible. I think we will approve the text by the end of September and will sign it after that,” said Janos Veres.

The agreement will contribute to future development of cooperation between Belarus and Hungary in implementing joint investment projects.

At present the Belarusian automobile company MAZ and the Hungarian company Alfa Busz are in negotiations on setting up an enterprise in Hungary to assemble Belarusian buses. Janos Veres remarked that the two sides could also establish tight cooperation for assembling heavy machinery.

The Hungarian official believes that it would be promising to establish contacts in agriculture. Cooperation may be established between Belarus and the Hungarian society for the insurance of export loans. Hungary is interested in dynamically developing pragmatic contacts with Belarus. “Working in conditions of the global financial crisis, we have to do our best to prepare the ground for future expansion of the mutually beneficial cooperation between the two countries,” he said.

The first session of the Belarusian-Hungarian Commission for Economic Cooperation took place. The sides discussed the development of the legal base of the bilateral cooperation, implementation of joint projects in the area of manufacturing cooperation, expansion of interregional cooperation. Three working groups have been set up to advance cooperation in industry, standardization, and small business, agriculture, science and technology.

The Hungarian side has acknowledged Belarus’ view regarding cooperation between Belarus and the European Union (the Generalized System of Preferences, textile trade), the Organization for Economic Cooperation and Development (enhancement of the credit rating) as well as amendments to the Kyoto Protocol.

In January-July 2009, the trade between Belarus and Hungary made up US100.2 million or 49.1% as against the same period 2008.

In the period under review, the Belarusian export to Hungary made up US 35.6 million or 31.8% as against the same period 2008. The import downed by 30% to make up US 64.6 million. The bilateral trade deficit made up US 29 million.

In 2008, the trade between Belarus and Hungary made up US 348.3 million, up US 78.3 million or almost 29%. The Belarusian export to Hungary was estimated at US 174.2 million, up 24.7%, the import US 174.1 million, up 33.5%. Belarus posted the trade surplus at US 79,000. In 2008, the Belarusian export to Hungary made up US99.3 million (without oil products) 0r up 38.7%.

Belarus’ major exports to Hungary include oil products, tractors, acrilonitrile, hot-rolled rod and plain-steel wire, potash fertilizers, millwork, and acyclic hydrocarbons. The bulk of imports from Hungary is accounted for prescription drugs, farm machines, monochloroethylene and ethylene polymers, communication equipment and spare parts to it, TV sets, TV monitors, and video projectors.

Among the basic reasons of a decrease in the trade between the two countries is the crisis state of the Hungarian economy, unfavorable pricing environment (acrilonitrile, plywood, salt), market overstocking (potash fertilisers, metal products, woodworking materials), deterioration of the competitivity of the Belarusian goods regarding the prices, other problems.

In 2008, the Hungarian investments in the Belarusian economy made up US 0.3 million. In January-March 2009, Hungary did not invest in the Belarusian economy.

There are seven joint Belarusian-Hungarian companies in Belarus including an enterprise with 100% Hungarian capital.

The Belarusian national unitary company of export-import insurance Beleximguarant and the export credit insurance company MEHIB (Hungary) signed the cooperation agreement in November 2008. The two companies demonstrate successful cooperation.

Hungarian company Dimarson shows an interest in supplies of LCD TV sets and microwaves produced by the Horizont Company (Minsk) to Hungary and Romania. At present, Dimarson supplies Atlant-produced refrigerators and washing machines to Hungary and Romania using its own trademark.

At present, MAZ and Hungarian Alfa Bus are discussing the setting up of an assembly production of Belarusian buses MAZ-203 and MAZ-206 in Hungary.