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Slovakia 2018

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Slovakia 2018 Slovakia 2018 1 Table of Contents Doing Business in Slovakia __________________________________________ 5 Market Overview ______________________________________________________________ 5 Market Challenges _____________________________________________________________ 5 Market Opportunities ___________________________________________________________ 6 Market Entry Strategy __________________________________________________________ 6 Political Environment _______________________________________________ 7 Political Environment __________________________________________________________ 7 Selling US Products & Services _______________________________________ 8 Using an Agent to Sell US Products and Services ___________________________________ 8 Establishing an Office __________________________________________________________ 8 Franchising __________________________________________________________________ 9 Direct Marketing _______________________________________________________________ 9 Joint Ventures/Licensing _______________________________________________________ 9 Selling to the Government _____________________________________________________ 10 Distribution & Sales Channels __________________________________________________ 10 Express Delivery _____________________________________________________________ 11 Selling Factors & Techniques ___________________________________________________ 11 eCommerce _________________________________________________________________ 12 Trade Promotion & Advertising _________________________________________________ 13 Pricing ______________________________________________________________________ 14 Sales Service/Customer Support ________________________________________________ 14 Protecting Intellectual Property _________________________________________________ 15 Due Diligence ________________________________________________________________ 16 Local Professional Services ____________________________________________________ 17 Principal Business Associations ________________________________________________ 17 Limitations on Selling US Products and Services __________________________________ 17 Web Resources ______________________________________________________________ 17 Leading Sectors for US Exports & Investments _________________________ 18 Aircraft, Spacecraft, HS Code 88 ________________________________________________ 18 Nuclear Reactors, Boilers, Equipment, Machinery, HS Code 84 _______________________ 19 Mineral Fuel, Oil, Bituminous Substances, HS Code 27 _____________________________ 22 Electrical Machinery, Sound Equipment, HS Code 85 _______________________________ 24 Optical, Photo, Medical/Surgical Instruments, HS Code 90 ___________________________ 27 Vehicle Parts and Components, HS Code 87 ______________________________________ 30 Agricultural Sector ___________________________________________________________ 34 Customs, Regulations & Standards ___________________________________ 36 Trade Barriers _______________________________________________________________ 36 Import Tariff _________________________________________________________________ 37 Import Requirements & Documentation __________________________________________ 37 Labeling/Marking Requirements ________________________________________________ 38 U.S. Export Controls __________________________________________________________ 39 Temporary Entry _____________________________________________________________ 40 Prohibited & Restricted Imports _________________________________________________ 40 Customs Regulations _________________________________________________________ 41 Standards for Trade ___________________________________________________________ 41 Trade Agreements ____________________________________________________________ 45 Licensing Requirements for Professional Services _________________________________ 45 Web Resources ______________________________________________________________ 45 Investment Climate Statement _______________________________________ 48 Executive Summary ___________________________________________________________ 48 Openness to and Restrictions upon Foreign Investment ____________________________ 48 Bilateral Investment Agreements and Taxation Treaties _____________________________ 48 Legal Regime ________________________________________________________________ 48 Industrial Policies ____________________________________________________________ 48 Protection of Property Rights ___________________________________________________ 48 Financial Sector ______________________________________________________________ 48 State-Owned Enterprises ______________________________________________________ 48 Responsible Business Conduct _________________________________________________ 48 Corruption __________________________________________________________________ 49 Political and Security Environment ______________________________________________ 49 Labor Policies and Practices ___________________________________________________ 49 OPIC and Other Investment Insurance Programs___________________________________ 49 Foreign Direct Investment and Foreign Portfolio Investment Statistics ________________ 49 Contact for More Information on the Investment Climate Statement ___________________ 49 Trade & Project Financing __________________________________________ 50 Methods of Payment __________________________________________________________ 50 Banking Systems _____________________________________________________________ 50 Foreign Exchange Controls ____________________________________________________ 51 US Banks & Local Correspondent Banks _________________________________________ 51 Project Financing _____________________________________________________________ 51 Multilateral Development Banks _________________________________________________ 54 Web Resources ______________________________________________________________ 55 Business Travel ___________________________________________________ 57 Business Customs____________________________________________________________ 57 Travel Advisory ______________________________________________________________ 57 Visa Requirements ___________________________________________________________ 57 Currency ____________________________________________________________________ 58 Telecommunications/Electronics ________________________________________________ 59 Transportation _______________________________________________________________ 59 Language ___________________________________________________________________ 60 Health ______________________________________________________________________ 60 Local Time, Business Hours and Holidays ________________________________________ 60 Temporary Entry of Materials or Personal Belongings ______________________________ 61 Web Resources ______________________________________________________________ 61 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2018. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Doing Business in Slovakia Market Overview Discusses key economic indicators and trade statistics, which countries are dominant in the market, the U.S. market share, the political situation if relevant, the top reasons why U.S. companies should consider exporting to this country, and other issues that affect trade, e.g., terrorism, currency devaluations, trade agreements. Slovakia is a country of 5.4 million people and is strategically located at the geographic heart of Europe. The Slovak market is increasingly dominated by the automotive, electronics, engineering, tourism and service industries. In addition to its strategic location and educated population, Slovakia’s stable macroeconomic policies have made it a good place for U.S. exporters to do business. Slovakia is a member of the North Atlantic Treaty Organization (NATO), the Organization for Economic Cooperation and Development (OECD), the European Union (EU), the Organization for Security and Cooperation in Europe (OSCE), the United Nations (UN), the Council of Europe, the Visegrad 4 (V4), the Central European Free Trade Agreement (CEFTA), the International Monetary Fund, the World Bank, the International Finance Cooperation, the World Trade Organization (WTO), UNESCO, INTERPOL, and other multi-lateral organizations. It is also a member of the EU Schengen Agreement, which allows for the free movement of people. Slovakia adopted the euro (EUR) as its currency on January 1, 2009, becoming the 16th member of the European Monetary Union, resulting in the facilitation of trade through lower transaction costs, higher pricing transparency, and greater monetary stability. Slovakia has a positive financial outlook according to Moody’s and a stable financial outlook according to S&P and TE rating agencies. Real GDP growth reached 3.4% in 2017, one of the fastest growth rates among all EU countries. Unemployment nationwide dropped down from 9.7% in 2016 to 5.42% at the end of April 2018, but varies widely from region to region. Inflation in 2017 was 1.4%. Continued GDP growth of approximately 4.1% is anticipated in 2018. U.S. exports to Slovakia in 2016 totaled USD 525 million. U.S. Imports from Slovakia in 2017 totaled USD 2.33 billion. Total Foreign Direct Investment (FDI) stands at more than USD 41.5 billion as of 2016, with U.S. FDI estimated at approximately USD 4.6 billion. U.S. imports from Slovakia are dominated by Volkswagen, Audi and Porsche Sports Utility Vehicles that are manufactured in Bratislava. Slovakia’s major trading partners
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