Hearings in Parliament have revealed the serious economic risks facing Bulgaria. The new tariffs imposed by the administration of US President Donald Trump on European goods are expected to cause significant damage to Bulgarian exports. The threat is both direct and indirect, with potential losses estimated at hundreds of millions of euros.
Business representatives and members of parliament gathered in the parliamentary Committee on Economy and Innovations to hear the minister of economy and industry, Petar Dilov. In the heated atmosphere of the session, Minister Dilov presented detailed data prepared by his ministry in cooperation with experts from the Bulgarian Academy of Sciences (BAS). The figures reveal a worrying picture. According to the analysis, the direct effect of the US tariffs on Bulgarian exports could reach 468 million euros, while the indirect effect is projected to amount to 158 million euros. Thus, the total potential loss for the Bulgarian economy exceeds 600 million euros.
The hearing, which was also attended by the deputy minister of economy and industry, Nevena Lazarova, was initiated by the PP-DB parliamentary group. Their question to the minister was aimed at how the government plans to maintain the competitiveness of Bulgarian goods and services in the face of the new US trade policy.
Measures in Response to US Trade Policy
In response, Minister Dilov outlined a set of measures that his ministry will take to support Bulgarian businesses. The first step is to provide detailed analyses and information, because, in the minister's words,
"not all companies perform a risk analysis on the degree of impact". This highlights the need to raise awareness among businesses about the potential risks so they can prepare adequately.
Among other key initiatives that were presented is maintaining an active and constant dialogue with branch organizations. In addition, the government will focus on promoting Bulgarian exports to alternative markets, both within and outside of Europe. This strategy will also rely on trade agreements that the EU has already concluded or is about to prepare with third countries. Examples cited were the progressing negotiations for agreements with Indonesia and India.
Minister Dilov also emphasized the strengthening of the role of the Offices for Trade and Economic Affairs (OTEA), which should be a key tool for finding new opportunities for Bulgarian exporters. He also made a recommendation to the Export Insurance Agency, urging it to prepare financial instruments to support exporters.
In addition to these measures, the minister also answered a question from the PP-DB parliamentary group regarding the role of bilateral intergovernmental commissions. He described them as
"one of the best tools for promoting the trade of Bulgarian goods abroad and the import of foreign ones". Dilov noted that a number of such commissions have already been held, and a bilateral commission with China is scheduled to take place at the beginning of next week. However, he also made a point of noting the difficulties of entering the Chinese market, citing its enormous size as one of the main obstacles.