Trade Policy Uncertainty

Global merchandise trade faces headwinds from rising protectionism and tariff policies, particularly affecting transatlantic commerce. The World Trade Organization has warned that policy uncertainty threatens to constrain global growth, with trade volume growth projected to slow in the coming years. This volatile environment makes the role of local advocates and facilitators for Czech business interests more critical than ever.

Reshoring and Nearshoring

Companies worldwide are reconfiguring supply chains through nearshoring and reshoring strategies, seeking to reduce dependency on distant suppliers and mitigate geopolitical risks. Czechia’s central European location, skilled workforce, and EU membership gives it certain advantage to capture investment from companies pursuing these strategies.

Technology and AI-Driven Trade

Growth in AI-related goods—semiconductors, servers, telecommunications equipment—accounted for nearly half of global trade growth (as of July 2025). Czechia’s emphasis on attracting semiconductor manufacturing and technology center investments aligns perfectly with this trend, creating opportunities for honorary consuls to facilitate technology partnerships.

Diversification Beyond Traditional Markets

Geographic diversification reduces vulnerability to economic downturns in any single region and creates opportunities in emerging markets to facilitate even more business connections. Czech exports have successfully diversified beyond traditional euro area partners, with robust growth in non-EU markets. This is a trend that needs further strengthening and support.