Martin Zsarnóczky is President of the American–Hungarian Chamber of Commerce of New York (AmHunCham). He holds a degree in economics, with a focus on the intersection of economic development, quality of life, and well-being. He is also an external member of the Hungarian Academy of Sciences. On 17 April he visited the Danube Institute to sign a Memorandum of Understanding between the prominent Hungarian conservative think tank and the American–Hungarian Chamber of Commerce of New York. During his visit, he sat down with Hungarian Conservative to discuss US–Hungarian economic and trade relations, while also addressing the seismic changes currently reshaping the world order as we know it.
***
Although our interview will cover many important topics, the principal reason for our conversation is the Memorandum of Understanding between the American–Hungarian Chamber of Commerce in New York and the Danube Institute. What is the purpose of this cooperation?
Primarily, I believe that two distinguished organizations, both deeply committed to Atlantic affairs, have joined forces through this collaboration. Our primary objective is to facilitate access to the American market, and our secondary aim is to support American investments in Hungary and, more broadly, Central and Eastern Europe. The Danube Institute is an outstanding partner, as it stands firmly in favour of Atlantic commitment, as does the American–Hungarian Chamber of Commerce of New York, which operates partly in the United States and partly in Hungary and the surrounding region. Our Chamber’s origin was established in 1909, and we are proud to uphold historical traditions and knowledge that our members can rightfully cherish. It is important to us to cooperate with partners not only within New York State but also across several other states along the East Coast, and in recent years we have also developed active relations in Texas. We place particular emphasis on integrating tradition into our communications, thereby reinforcing continuity and credibility.
Your organization’s history spans more than a century. What areas does your activity cover, and what goals do you seek to achieve?
It is worth noting that the Chamber was founded in 1909, during the era of the Austro–Hungarian Monarchy. At that time, there was a need in New York for a chamber that primarily brought together members of Hungarian nationality, although not exclusively so. The ‘melting pot’ character of the period made it possible for a distinguished organization to emerge, capable of bridging multiple nationalities and languages. The business generations of the time typically spoke six to eight languages, enabling them to understand one another and thus facilitating joint business success. We are committed to preserving this tradition and dialogue. Accordingly, we do not focus solely on Hungary or Budapest but also extend our attention to Hungarian communities and entrepreneurs in neighbouring countries. Our principal aim is to provide advocacy for interests in the American market, meaning we assist Hungarian and European companies in exploiting business opportunities, as well as familiarizing them with the American legal and regulatory environment, which often differs considerably from European norms. Our primary target group is medium-sized enterprises, particularly multigenerational family businesses, the so-called family offices, which do not fall within the category of large corporations.
Thus, you are active both in the United States and Hungary. How does your work differ in the two countries?
It is important to emphasize that in every European Union member state there exists an AmCham organization, which offers legal and other assistance to multinational companies entering from America. However, our activities differ: large corporations are represented among us to a much lesser extent, whereas we are innovative and able to respond rapidly to challenges. In our work, we maintain relations with numerous member organizations, whether they be chambers of commerce or industrial and entrepreneurial associations. Our reach along the American East Coast encompasses approximately 100,000 to 150,000 companies. This extends beyond New York City to New York State, New Jersey, Georgia, Florida, and Texas. There is considerable interest from European companies in these states, and we are able to assist through our local presence and network of contacts. Our activities focus on mapping market opportunities, developing analyses, seeking partners, and organizing direct business meetings. Parallels can be drawn with Hungary’s HEPA export promotion system; however, in the United States, similar organizations operate at the state, county, and city levels as well. In recent years, we have actively participated in promoting the Select USA Investment Summit in Hungary, in cooperation with the Commercial Department of the United States Embassy. We organize this event annually to enable Hungarian entrepreneurs to establish direct contact with American states and to access tailor-made offers. It is important to note that in the United States, various support programmes exist which do not necessarily require the establishment of an American headquarters. Our Chamber is composed exclusively of active entrepreneurs who manage their own businesses and can thus offer real-life examples and practical experience to those contemplating foreign market expansion.
What opportunities are available today for Hungarian companies in the American market?
We observe that recent times have brought unprecedented opportunities for European, including Hungarian, companies. For the first time, a business climate can be felt that is particularly favourable towards European firms. Based on our experiences, companies with a presence not only in Hungary but also in neighbouring countries are able to achieve success in America more quickly and easily than those operating solely within Hungary. Our cooperation was established precisely to bridge this gap: by transferring cultural, business, and local knowledge, we can assist Hungarian firms in entering the American market with greater ease.
And what about the opposite direction?
The American–Hungarian Chamber of Commerce of New York is committed to organizing business delegations to Hungary and the United States on a regular basis, although not necessarily every year. A few years ago, after a hiatus of 20 years, a business delegation once again visited Hungary, accompanied by an official legislative delegation comprising senators and a businessmen’s delegation from New Jersey. Their explicit aim was to forge new business relationships. It is noteworthy that several members of the delegation had Hungarian roots, further strengthening cultural bonds and business openness. On the American side, there was a clear demand for knowledge and experience exchange, whether in the form of capital investment or know-how transfer. The most prominent sectors were IT, services, and family enterprises.
In recent years, Hungarian–US relations have become deeply politicized, which has inevitably affected commercial ties. So far, we have mainly seen the negative side, such as the Biden administration’s unilateral termination of the double taxation treaty. How has this affected the business sector?
I believe that the termination of the double taxation treaty must be viewed from two perspectives: political and economic. We are hopeful that the political situation will stabilize and that a solution will soon be found. From an economic perspective, we saw that most affected small and medium-sized businesses responded with flexibility: many resolved the issue by relocating their headquarters to Slovakia or Romania, for example. In retrospect, it can be stated that while the matter was significant, it did not cause disruption of such magnitude that it would have resulted in a long-term deterioration of economic relations. I am confident that the situation will normalize, and that political resolution will follow in the near future. This is one of the changes the Hungarian government expects from Donald Trump’s second presidency.
Guiding Hungarian Firms into US Market — An Interview with Martin Zsarnóczky of AmHunCham