By Doreen Hemlock. Business Writer. Posted April 27 2001 in
The Sun-Sentinel
Building on its success as one of the best performing post-Soviet economies,
the Czech Republic Thursday became the first Central or Eastern European country
to open an office in South Florida to promote business.
The office received an effusive welcome from the Cuban-American
establishment in Miami, which sees the Czech Republic as a model for
post-communist Cuba. Prague has won their hearts by denouncing authoritarianism
in Cuba and co-sponsoring a U.N. resolution condemning human rights abuses in
the nation led by Fidel Castro.
Czech officials, on hand to christen the trade office, urged Cuban-Americans
to translate their political ties into trade and investment. They pointed to
opportunities to distribute such Czech products as industrial machinery, tools,
glassware, auto parts and beer in the United States and also, in Latin America
and the Caribbean.
Cuban-American leaders reacted warmly. "We've given moral support, but
with this trade office, it's time to see if we can collaborate with business,
too," said Clara M. del Valle, vice chairman of the Cuban-American National
Foundation, at a luncheon unveiling the office. "The Czechs understand it's
better to do business with Cuban-Americans than with Fidel."
The new trade office is only the second in the United States for the Czech
Republic, together with one in Chicago, a city with a strong Czech immigrant
base, said Roman Matyas, who directs the Czech trade office near Miami's
airport.
The Czech Republic is targeting the U.S. market to diversify business from
Europe, which now accounts for roughly 90 percent of its total trade, said
Martin Tlapa, director of the Czech government's trade agency who visited from
Prague.
Last year, U.S.-Czech trade rose more than 25 percent to $2.2 billion. The
Czechs bought more goods from the states than they sold: $1.4 billion, vs. $814
million.
Still, Czech sales to the United States now top Czech exports to Russia -- a
reversal of patterns during four decades when the Soviet Union controlled
then-Czechoslovakia, said Alexander Vondra, Czech ambassador to the United
States.
That shift reflects the larger "Velvet Revolution" that swept the
South Carolina-sized nation of 10.4 million people after the collapse of the
Soviet Union in 1989. The revolution ushered in multi-party democracy and a more
market-oriented economy.
Compared to other post-Soviet areas, the Czech Republic performed well in
the 1990s, showing stronger economic growth, less unemployment and less
inflation than many peers. Forbes magazine even dubbed the country an emerging "Hong
Kong of Europe."
How did the nation, which separated from Slovakia in 1993, manage to
outperform the others?
Analysts point to its pre-Soviet history as one of Europe's most developed
areas and the most industrialized part of the former Austro-Hungarian Empire.
The centuries-old Czech entrepreneurial spirit bloomed, said attorney Alan
Becker, the Czech honorary consul in Florida and a partner in Fort
Lauderdale-based Becker & Poliakoff.
Furthermore, the country's historic beauty and low costs for travel fueled
tourism, especially from neighboring Germany. The tourism industry helped to
absorb workers who were fired, when private owners took over what had been
overstaffed state companies.
The government also got aggressive about re-integrating with capitalist
nations, joining the North American Treaty Organization in 1999 and aiming to
enter the European Union within a few years, officials said.
Still, it was Prague's backlash against communism that seemed to resonate
most with the Cuban-Americans attending events for the Czech office, including
Miami-Dade County Mayor Alex Penelas. And Czech officials played up opposition
to Castro to spur business.
"We know what it is like to be oppressed by a totalitarian and
authoritarian regime," said Czech ambassador Vondra, "so we are trying
to do our best to express our solidarity with those Cubans who are fighting for
freedom, democracy and the free market there."
Doreen Hemlock can be reached at dhemlock@sun-sentinel.com or
305-810-5009.
Copyright 2001, Sun-Sentinel Co. & South Florida
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