Public administration, food services, defense, transportation, wholesale commerce, education, retail trade, human health, accommodation, social work activities, and industry were the most important sectors of Hungary’s economy in 2020. Hungary joined the European Union (EU) on the 1st of May, 2004. 78 percent of Hungary’s exports are made within the EU. Outside of the EU, 3 percent of exports are sent to the United States and 3 percent to the United Kingdom. In terms of imports, 71 percent are from the EU Member States. Outside the EU, 9 percent come from China and 4 percent from the Republic of Korea. Hungary is a member of the EU and is a party to all of the EU’s trade agreements. With 45 implemented trade agreements encompassing 77 partner nations, the EU currently possesses the world’s greatest trading network. This article discusses some of Hungary’s trade agreements.
World Trade Organization
Hungary has been a member of the World Trade Organization (WTO) since January 1, 1995, and of the General Agreement on Tariffs and Trade (GATT) since September 9, 1973.
Hungary and India Trade Agreement
In recent years, India-Hungary cooperation has advanced rapidly in a variety of areas. Agriculture, defense industry, health, including Ayurveda, oil exploration, research and technology, and educational and cultural exchanges are all examples of bilateral cooperation between the two countries.
The Central European Free Trade Agreement (CEFTA)
The Czech Republic, the Republic of Hungary, the Republic of Poland, and the Slovak Republic signed the Central European Free Trade Agreement (CEFTA) on the 21st of December, 1992. The CEFTA’s conclusion shows that the four nations participating recognize the common historical causes that shaped them between 1945 and the fall of communism in 1989-1990. The CEFTA’s main goal is to establish a free trade zone in Central Europe by the 1st of January, 2001. The least difficult kind of regional trade organization to establish is a free trade area, in which commodities flow duty-free between member countries. On the 1st of March, 1993, the CEFTA came into force.
Transatlantic Trade and Investment Partnership (TTIP)
Hungary is one of the countries engaging in the Transatlantic Trade and Investment Partnership (TTIP) negotiations with the rest of the European Union and the United States. The US and the EU have a significant bilateral trade relationship, with a total value of $698.7 billion in 2015.
The Three Seas Initiative (3SI)
The Three Seas Initiative (3SI) was established in 2015 to improve interconnection in Central and Eastern Europe’s digitization, infrastructure, and energy projects. Hungary and 11 other EU members- Slovakia, Croatia, Poland, the Czech Republic, Slovenia, Lithuania, Austria, Estonia, Romania, Bulgaria, and Latvia are participating in the effort. The venture’s major purpose is to build northern-southern energy and infrastructural corridor in the region. With a population of 10 million people and a combined GDP of $1.7 trillion, the region has emerged as a major engine of European economic growth.
Hungary and Canada Trade Agreement
Canada and Hungary have several business ties that benefit both countries, including commerce, investment, and collaboration in the fields of innovation, research, and technology. The Comprehensive Economic and Trade Agreement between Canada and the European Union gives further opportunities to strengthen bilateral economic connections. The two-way trade between Canada and Hungary is expected to reach $910.7 million in 2020. Exports to Hungary totaled $63.3 million, while imports totaled $847.4 million. The trade agreement was signed in October 2016.
Hungary and Croatia Trade Agreement
Hungary and Croatia Trade Agreements Hungary has a free trade agreement with Croatia that took effect on the 1st of November, 2001. Croatia ranked as Hungary’s twentieth trading partner in 2019. Medicines, electricity, medicines, and road vehicles were Hungary’s three largest exports to Croatia while some of Hungary’s main imports to Croatia are perfumes, polishing and cleaning products, and crude oil products.
