Czech and Slovak agricultural foreign trade – two decades after the dissolution

Abstract

Agrarian trade of the Czech Republic and Slovakia has undergone very significant changes in the period since the break-up of Czechoslovakia up to the present, which have influenced its commodity and territorial structure. The process of dividing the state, building a new business structure and the EU accession influenced the current form of Czech and Slovak agricultural trade and also particularly the competitiveness of Czech and Slovak agricultural and foodstuff products in relation to the EU market and also in relation to the world market. The process of transformation of agricultural production and trade in both countries has also affected their relationships. For this reason, the primary objective of this paper is to highlight the changes that have occurred in relation to the Czech and Slovak agricultural trade performance development – and in particular the changes in the mutual export and import operations are analysed. During the period 1994–2010, agricultural exports from the Czech Republic to Slovakia became considerably more dynamic than those in the opposite direction. Czech agricultural and foodstuff products have gradually established themselves and have gained comparative advantages over Slovak agrarian production. As a result of this development, a gradual increase of the negative balance of Slovak agricultural trade has occurred in relation to the Czech Republic. Since the Slovak agrarian sector has in recent years significantly decreased its own production capacity, in the future a continuation of the current trend can be expected.