Austrian growth in foreign trade: opportunities and challenges!

Austrian growth in foreign trade: opportunities and challenges!

Austria's economy benefits enormously from the EU internal market, which saves billions of euros in costs for companies annually. This applies in particular to medium -sized companies that can now act as suppliers for large European companies. Michael Otter, the head of the foreign trade department in the WKÖ, emphasizes: "I don't want to imagine what we would have had for additional costs" without EU membership. Thanks to the EU, Austria's foreign trade has quadrupled over the past 30 years, which, according to a calculation of the WIFO, has a real growth effect of 0.7 percentage points annually. Trading with EU countries is now around 40 percent higher than without an EU membership, which offers companies remarkable advantages, since the large pharmaceutical companies have only strongly invested in Austria through the internal market, says Otter.

However, not all aspects are positive. The bureaucracy increasingly shows weaknesses, which means that companies are faced with challenges. Information is often requested that are simply not available, which is burdened by everyday business. For example, the supply chain law ensures additional costs and time expenditure, since many suppliers abroad cannot provide any precise evidence of origin. This strongly burdens companies, especially since they already have to fight with high wage and energy costs. Otter warns: "If we continue as before, it will have to be said in 30 years: 'We are a little wrong."

trade relationships and strategies of the EU

The trade policy of the European Union plays a crucial role in the economic stability of the Member States. The EU is not only the largest internal market in the world, but also one of the most oriented economies. The EU's foreign trade has doubled since 1999 and has now accounted for over 30 percent of gross domestic product, which underlines the importance of foreign trade relationships. The Union is negotiating as a uniform block trade agreement with third countries, which gives it a stronger voice in international trade. These agreements enable companies from the EU to expand their business activities and to import raw materials more importantly, which is of high importance for the economic health of the member states, as on the website of the European Union can be read.