Bulgarian Association Calls for National Export Strategy

Business | April 18, 2012, Wednesday // 17:54|  views

Ivo Todorov (left), ABE Chair, and Krasimir Dachev (right), ABE Deputy Chair, gave a press conference Wednesday. Photo by BGNES

The newly established Association of Bulgarian Exporters (ABE), which brings together companies generating about 25% of the country's total exports, has emphasized the need for a national strategy for the development of the sector.

Krasimir Dachev, Deputy Chair of the ABE, stated Wednesday that Bulgaria's exports in 2012 were hardly likely to reach the levels of 2011.

Representatives of the Association made clear that it would be a tough year mainly due to the uncertainties surrounding Bulgaria's major trade partner, the European Union.

Ivo Todorv, Chair of the ABE and CEO of lubricants maker Prista Oil, argued that Bulgaria had to find new paths for its production, including by restoring its good trade relations with the countries from the former Soviet block and the Middle East.

Calculations of the ABE showed that in the past few years, Bulgaria's exports grew mainly in the segments of raw materials and services.

These segments, however, were not carrying a high added value and were not providing the necessary revenues for the state budget, nor leading to the improved financial condition of the companies, Dachev argued.

He went on to say that the several-fold increase in prices of base metals exported by our country was one of the main reasons for the nominal growth in export.

Taking into account real volumes, things stood different, Dachev noted, adding that there was even a slump in export.

Dachev, who is an owner of chemical plant Sviloza, reasoned that the state had to pursue a policy of "invisible protectionism" and do everything possible to encourage local production.

The ABE was set up on December 22, 2012 at the initiative of the Bulgarian Postbank.

Among the participants are lubricants maker Prista Oil, fuel and lubricants distributor Geotrading, chemical plant Sviloza, drug maker Sopharma, food and beverage company Bella Bulgaria, mining company Kaolin, etc.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Tags: export rate, exports, Association of Bulgarian Exporters, Sviloza Jsc, Sopharma, Postbank, Prista Oil


» Related Articles: