The evolution of Portuguese exports over the past decade has been positive, says Luís Castro Henriques, president of the Portuguese Investment and Foreign Trade Agency (AICEP), which emphasizes “increasing the resilience of exporting companies”. Particularly during the pandemic period, which put the organization of international supply chains to the test and reminded Europe of the importance of increasing independence from markets outside the European Union (EU). “Not only did companies have the ability to adapt to the new reality and respond positively, but some of them even diversified the markets during the pandemic,” the economist underlines.
The official, who heads the agency at the end of his second term, also refers to a “remarkable” growth in the competitiveness of entrepreneurs with cross-border sales, which is essentially due to three factors: more business and industrial efficiency, a greater tendency to innovate efficiently and adapt more and more to products with greater added value. “This can increase the export price, but it also gives perspective on product quality,” he believes. Castro Henriques even says that the feeling at international fairs is that “the Portuguese product is good and has quality”.
However, there are challenges on the horizon that are cause for concern, especially in a context marked by rising inflation and economic recession in Europe. “The uncertainty about sustaining and fluctuating energy and commodity prices is what worries us most,” the official admits. The reorganization of the supply chains, initially caused by the pandemic and, more recently, by the war in Ukraine, could provide opportunities for Portugal. “The metalworking, machinery and auto parts sectors will benefit from this reorganisation,” said Castro Henriques. In May, foreign sales by metalworking companies crossed the EUR 2 billion threshold for the first time – 25% more than in the same period in 2021.
However, ISEG economist and professor João Duque warns of what he sees as one of the country’s biggest obstacles to the growth of exports to Europe: the railway. “To re-industrialize Portugal, we must compete for the customer and create conditions for infrastructure, road and rail connections,” he emphasizes. Despite emphasizing the strategic position of national ports, he strongly criticizes investments in Iberian rail at the expense of European rail, which he believes would allow for an easier and cheaper connection to the rest of the continent. “The connection is inefficient and expensive,” he laments. And he adds that buying equipment that allows for adaptation to European standards could drive companies to Spain to avoid investing in these components.
Champion service attraction
As for attracting service centers to the national territory, João Duque believes that “we have the capacity and manpower”, although he points to a “tax system that is worthwhile” for foreign companies. “There must be stability” [fiscal] and competitiveness”, he criticizes “one of the largest OECD tax burdens” in Portugal.
Luís Castro Henriques, who already saw strong growth in new foreign service centers in the country in 2021, says that “if we compare the number of new customers, we will again break the record [em 2022]This year’s figures, through October, will be presented in detail next Wednesday, 12 in Viseu. “These are very, very good results and we have more and more sophisticated companies. This clearly shows the competitiveness of Portuguese talent,” he assures.
Mapping out paths and growth prospects for the Portuguese economy over the next 15 years will be the central theme of AICEP’s fourth annual conference – Exports and Investments, which will count for the last time with Luís Castro Henriques at the helm of the institution. The mandate ends this year “with figures reflecting the work” of the agency with Portuguese companies, as the investment cycle of the Portugal 2020 framework closes. The event will take place on Wednesday 12 noon from 3 p.m. at the hotel Montebelo Príncipe-Perfeito in Viseu, in the presence of former presidents of AICEP and Prime Minister António Costa.
Source: DN
