"I want to help put Hungary on the map for decision makers in the United States"

An Interview with Ambassador Simonyi

 

By Mátyás Vince and Edith Balázs

 

 

With Hungary's expected accession to the European Union, the country's relations with the U.S. are bound to experience significant changes in the near future. Improving both political and economic ties with the U.S, as well as dispelling any kind of fears potential American investors might feel toward Hungary are issues of absolute priority on the agenda of András Simonyi, Hungary's new Ambassador to the U.S. Two days before his departure to Washington to present his credentials to President George W. Bush, Ambassador Simonyi spoke with Business Hungary about the focal bilateral issues and matters he wishes to work on, such as international security, economic cooperation and strengthening ties with the American media.

 

BH: What do you consider the most signifi­cant recent investment developments concerning Hungary and the United States?

 

Ambassador Simonyi: American corporations have played a very important role in Hungary's transition to a market economy. Some of them have provided a very good example of how to establish a company locally, and use Hungary as a hub for operations in Central and Eastern Europe as well as fur­ther abroad. I believe this trend will continue, and while the overall recession in the world economy has threatened investor interest in emerging markets around the world, it will be one of my most important tasks to ensure that investor interest in Hungary increases and that Hungary remains an importer of hi­-tech. I think Hungary holds opportunities for old economy and new economy investors alike. As Hungary's economy begins to resemble the more developed European economies, we have to adjust investor incentive policies accordingly. One of my tasks will be to assist my Government in finding new opportunities through these policies.

 

BH: According to the Hungarian Government, a new investment package is being prepared. What is your opinion of this package?

 

Ambassador Simonyi: The package is geared toward responding to investor demands as Hungary moves into the EU. We will want to make sure that investors from outside the EU do not lose interest in Hungary. I expect the final details of the package to come out towards the end of this year.

 

BH: With Hungary's accession to the EU approaching, economy-related policies and regulations as well as the entire market are bound to undergo significant changes. Do you expect to see any major problems that may arise in U.S. - Hungarian business relations following Hungary's EU accession?

 

Ambassador Simonyi: The U.S. administration has repeatedly underlined that it wants to see Hungary become a EU member as soon as possible. This support is based on security and political interests, as well as business and economic interests. There are some fears from U.S. corporations that Hungary's EU accession will change the county's attitude toward the U.S. I'd like to dispel any such fears. Hungary will not lose interest in American investors. Much of the foreign investment in question comes from global companies that are already integrated with the rest of Europe, rather than strictly being American companies. On the other hand, as the Hungarian economy moves toward "normality," some of the attractive elements - such as relatively low wages and privatization opportunities ­will have to be replaced by different kinds of investment incentives, such as improving infrastructure and transparency. We have to do our best to send strong signals to American investors that they are most welcome and will not face disadvantages due to Hungary's membership in the EU. I see American corporations as important engines of growth in Hungary's modernization, and it is a priority to keep American investor interests in mind.

 

BH: Do you see any major problems concerning Hungarian exports to the U.S.? Will the easing of many Hungarian busi­nesses facing significant trade barriers in exporting to the United States be a part of your effort during your term?

 

Ambassador Simonyi: I will concentrate not only on attracting investment in Hungary, but on working toward a breakthrough in small und medium-sized Hungarian companies (SMEs) doing business with their counterparts in the United States. Currently, Hungarian companies need a lot of encouragement, as they are hesitant to venture beyond Europe in pursuit of their business interests. There are many good examples of companies that have successfully found niches und partnerships in the U.S. business environment, und we cannot be dissatisfied with the amount of business we do in the U.S. Of course, I'd like to see progress with Hungarian agriculture products. However, I think that we must be smarter in our marketing, und realize that the U.S. market is very large, but also very demanding. I will work with the embassy to develop opportunities for Hungarian business in the U.S.

 

BH: Is your posting at embassy for a specific period?

 

It is not a fixed term. Normally ambassadors have a four-year assignment, but when I was in Brussels in 1992 I went for one year and ended up staying for nine.

 

BH: How do you see the role of the AmCham in furthering bilateral business and economic relations? Do you think this is on organization that can give Hungarian companies the kind of help they need to successfully export to U.S. markets?

 

Ambassador Simonyi: I consider AmCham to be a partner, and I have spoken with the President of AmCham and several board members in Hungary. I think they have come up with some excellent ideas and we have agreed that we should look at supporting not only companies that are Hungarian-owned, but also international companies that have a strong Hungarian base and are integral parts of the Hungarian economy. AmCham is a very active representative of business interests, and I look forward to working with the Chamber. I will rely on their analysis and representation of various problems. I also wish to cooperate closely with Ambassador Nancy Goodman Brinker, who has become a good friend of both my wife and myself. We have been discussing bilateral relations a great deal and I would think that it is important that there is an American Ambassador here who would like to see Hungarian-American relations develop and prosper.

 

BH: All ambassadors are advocates of several interests, which often compete for resources and attention. What ore the most important areas where you would like to see progress during your term in the U.S.?

 

Ambassador Simonyi: I personally wish to make sure that Hungary finds its place as an important member of the Transatlantic community. Hungary is a member of NATO, it will become the member of the EU, and I would think that this country could play a significant role in the future relations between Europe und America. I want to help put Hungary on the map for decision makers in the U.S. I also want to make sure that Hungary is seen as a reliable ally, and also as a stable democracy with a prosperous economy.

 

BH: There has been talk of a future visit to the U.S. by Prime Minister Péter Medgyessy. Can you confirm the dates of this visit and whether he will be meeting with President Bush?

 

Ambassador Simonyi: Most likely there will be a visit in November 2002, and although we do not yet have the exact dates, preparations are already under way for expected meetings in both Washington D.C. and New York. In any visit of the Hungarian Prime Minister to the U.S., a meeting with the President is always the highlight of bilateral relations. It will be important in discussing security issues, issues related to the war on terror, discussion of cooperation within the North Atlantic Treaty, and questions related to EU accession. It will also be very important because the Prime Minister wilt meet representatives from the American business community, and the visit will set the pace and direction for bilateral relations in the coming years.

 

BH: What kind of an ambassador do you wish to be?

 

Ambassador Simonyi: I tend to look forward rather than backward when making claims about my goals, but I am definitely bringing my own style and attitude to the position. I want to push the possibility of Hungarian-American relations to the limit, as I think the relationship with the U.S. is critical at this point in Hungary's transition process. I am looking to concentrate on three major fields. Firstly, our cooperation as allies in the field of security and the war on terror, largely through the NATO framework. Secondly, I'd like to focus on economic cooperation, through foreign investment, technology transfer and scientific research cooperation. Thirdly, I'd like to forge good ties with the American media, and hope to use the best of modern Hungarian culture to send a strong positive message about Hungary, while facilitating the cooperation of civic organizations in both countries. Overall, I have a strong staff working for me, and believe I can make positive changes in the way we do business with the United States.

 

(Business Hungary, October 2002)