Long Israeli conflict may hurt trade |
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Long Israeli conflict may hurt trade |
2006-07-25 20:48:24 |
| autor: CTK |
A prolonged conflict between Israel and Lebanon may harm Czech companies considerably, according to Martin Tlapa, the Czech deputy minister of industry and trade.
?A long-lasting conflict would have a negative impact especially if the fighting affected the Haifa port through which Czech goods get to Israel,? he said. Israel launched a massive offensive July 12 after radicals from Hezbollah, a Lebanese guerilla group, had kidnapped two Israeli soldiers.
Tlapa added that Israel may delay some projects for which Czech companies are already preparing. ?This concerns, for instance, a tender for the supply of government limousines and a tender for steam turbines, in which Škoda Power is taking part,? Tlapa said.
He said that the conflict could increase pressure for higher oil prices. ?Oil prices are already high. A further price growth wouldn?t only have an even more negative impact on our foreign trade balance, but it would above all raise the prices of inputs in the Czech economy,? said Tlapa. This would affect the whole economy, but have a more significant impact on companies such as national air carrier Czech Airlines (?SA).
Tlapa added that the tourism sector could be hard hit as well by the conflict. ?This would concern not only the number of Czech tourists traveling to Israel or Lebanon, but also the number of Israeli tourists heading for the Czech Republic,? he said.
Czech exports to Israel amounted to $199 million (K? 4.5 billion/? 157 million) in 2005 and imports reached $106.6 million. Czech exports to Lebanon were worth $32.2 million and imports amounted to $1.1 million in 2005. n
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