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Czech-American Ties: a 100 Year Bond

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Czech-American Ties: a 100 Year Bond CZECH-AMERIcaN TIES: a 100 year bond Partners Our services for your business We are the Investment and Business Development Agency of the Czech Republic. Our mission is to encourage and support foreign direct investment. Come and explore opportunities in the Czech Republic! CzechInvest in New York Our New York Offi ce provides all information a potential investor may need when considering the Czech Republic as a suitable investment location. We focus especially on arranging investments in the areas of ICT, life sciences, aerospace and the automotive industry, as well as business support services and other related sectors. Contact our specialist in New York! Jan Chmelík Phone: 1-347-789-0570 E-mail: [email protected] CzechInvest in San Francisco Our West Coast offi ce is the main point of contact for current and future investors as well as Czech start-ups heading to Silicon Valley or other tech hubs. This offi ce focuses on high-value-added projects in the areas of autonomous driving and e-mobility, ICT, biotechnology, clean tech and high-tech manufacturing. Contact our specialist in San Francisco! Miroslav Tenkl Phone: 1-831-313-6295 E-mail: [email protected] www.czechinvest.org Prague | Düsseldorf | London | New York | San Francisco | Tokyo | Seoul | Shanghai Our services EDITORIAL for your business We are the Investment and Business Development Agency of the Czech Republic. Our mission is to encourage and support foreign direct investment. Come and explore opportunities in the Czech Republic! CzechInvest in New York Our New York Offi ce provides all information a potential investor may need when considering the Czech Republic as a suitable investment location. We focus especially on arranging investments in the areas of ICT, life sciences, aerospace and the automotive industry, as well as business support services and other related sectors. Contact our specialist in New York! Jan Chmelík CONTENTS Dear Friends, Phone: 1-347-789-0570 There are two reasons why I am glad to have been given the opportunity 3 Editorial E-mail: [email protected] to address the readers of this US-Czech business supplement. First, as a man of business, I am very much aware of the important role Mutual trade is increasing, but 4 a mutually beneficial business environment plays in relations between coun- black clouds are on the horizon tries. For that reason, one of the goals I set for myself as Ambassador to the Czech Republic was to promote economic prosperity and strengthen com- 6 The US is the number one Czech mercial ties between our two countries. export destination outside the EU, Second, as we celebrate the centennial of US-Czech diplomatic relations CzechInvest in San Francisco this year, we have an opportunity to look back, appraise, and discuss new and number three in terms ways to build our bilateral economic relationship – which is already at a high of inward investment level. Our West Coast offi ce is the main point of contact for current In my first seven months as Ambassador I have visited many of the major US companies invested in the Czech Republic, and I have also spoken to and future investors as well as Czech start-ups heading to Silicon US Ambassador Stephen King on 8 many Czech business people interested in expanding their companies to Valley or other tech hubs. This offi ce focuses on high-value-added the business of better diplomacy the United States. Wherever I went I was impressed by the Czech entrepre- projects in the areas of autonomous driving and e-mobility, ICT, neurial spirit, not only among professionals, but also among students and biotechnology, clean tech and high-tech manufacturing. 10 CzechInvest is building two-way ordinary people with the courage and energy to devote themselves to the investment bridges challenging task of starting their own business. In this spirit I recognize a common feature between our two countries. I honestly love the world of business and at the same time I love my work Aero Vodochody seeks to conquer Contact our specialist in San Francisco! 1 4 as ambassador. I therefore believe that it is the obligation of politicians and, America with its L-159 and L-39NG yes, even diplomats, to help create conditions for a sustainable and healthy Miroslav Tenkl planes business environment. We need to support high quality education, promote Phone: 1-831-313-6295 exchanges, and share information and expertise. E-mail: [email protected] I hope you will find inspiration and ideas worth pursuing in the articles 16 Hynek Kmoníček:TheUSvalues that follow. Czech reliability 18 A new lease of life for “Made in Czechoslovakia” Stephen b. King US Ambassador to www.czechinvest.org the Czech Republic CzeCh-US tieS: a 100-year bond. Special supplement. Published by ČTK via its Protext PR service, Opletalova 5, 111 44 Prague 1. Prague | Düsseldorf | London | New York | San Francisco | Tokyo | Seoul | Shanghai Project manager Jaroslav Kábele, editor Igor Záruba, sales Anna Uljačenková. Front cover Lucie Dynterová, ZČU ‒ US Point. Layout aper-grafika.cz. Photos Fotobanka ČTK, MPO, CzechInvest, Aero Vodochody, MZV, CSG. Translations Dominik Jůn. Contact www.protext.cz, [email protected]. ProtEX SPECial black clouds on the horizon Overthepastfiveyears,boththeCzechstateandCzech its diplomatic representation in the companies have considerably increased their activities in the US US – this includes new economic diplomats in Los Angeles and Chi- market. But newly-erected barriers to trade implemented by the cago, as well as adding new staff to the embassy in Washington, D.C. current US administration threaten further growth. Furthermore, the CzechTrade office in Chicago has also been expanded, while CzechInvest offices in New In terms of trade and investment market. Whether that is in IT services, record profits in the US. In terms of York and San Francisco continue to between the Czech Republic and biotechnologies, medical technologies, added value, we boast comparable carry out crucial work. Another key United States, certain key words or in the aeronautics business. results in the United States with the piece of news is that CzechInvest’s and phrases are impossible to avoid: I am delighted that even amidst likes of France and Italy, where we “CzechAccelerator” programme is added value, innovations, start-ups, considerable competition in the US, export twice the volume of goods. helping to support Czech start-ups technological cooperation, and source the Czech footprint is growing ever How has the Czech government in two destinations, namely Silicon of capital. The global success of our deeper in this market. And even reacted to this state of affairs? Over Valley and New York. technological companies is closely tied small and medium-sized businesses the past five years, the Czech Repub- It is also worth emphasising that to finding success in the American are taking an active interest, making lic has considerably strengthened a new state-backed system of in- a hit in the US. Czech 3D printer manufacturer Prusa Research has successfully entered the global market, with demand for its products exceeding production capacities. The US represents the firm’s greatest market. done deal. In October, 2016, the Czech government signed an in- vestment deal with GE. The US firm is planning to build a research, testing and production cen- tre for turboprop engines in the Czech Republic. 4 SUMMER 2018 CZECH-US TIES vestment incentives will factor-in to focus on measures pertaining to regret the current policies enacted of the World Trade Organisation the crucial mantra of the added the US automobile industry, utilising by the US administration. And the (WTO), as well as efforts to find value of given projects. One recent- a Section 232 investigation [a secti- European response to the steps taken a common solution based on the ly-cited example is investment on of the US Trade Expansion Act of by the US must be commended. We rules of international trade. undertaken into the Czech Repub- 1962, which provides the legal basis also fully support the approach taken One can only hope that the lic by US firm GE Aviation. for the US president’s actions –Ed.] the European Commission in defen- barriers introduced by the US are Alas, one cannot ignore recent to determine the effects of imports ding the binding rules of internatio- merely temporary and serve as an radical changes in US trade policy. on America’s national security. If nal trade. Such responses should be invitation to refocus efforts on build- From negotiating and eliminating such an investigation is truly carried proportional and only designed to ing a positive trade agenda. July's trade barriers via the Transatlantic out, then it could threaten European counter the negative effects of uni- Trump-Juncker meeting seems to Trade and Investment Partnership exports to the value of EUR 53bn; lateral actions by the US. In no case have given rise to such optimism. (TTIP), we now find ourselves in- and specifically Czech exports to the do we seek an escalation of tensions The two leaders struck a deal that stead creating new barriers to trade. order of EUR 300m. and protectionism in the arena of should end the rise in tit-for-tat trade President Donald Trump assumed All of which means we could be international trade. barriers and instead shift us towards the presidency espousing the mantra in for a hot summer and autumn, in Many of the problems found in closer cooperation on the issues of of “America First”. Recently en- which the automobile sector could international trade today, such as concern to both the EU and US. n acted policies by the US can only face a similar hit to what has already excessive production capacity, non- be described as protectionism.
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