Building Bridges in a Changing World

Diplomatic relations between the United Kingdom and Hungary date back to more than a century with evolving economic and commercial partnerships. Over this time, the International Trade & Investment Section of the British Embassy in Budapest has become a central pillar of this partnership, supporting British companies to export to and invest in Hungary and helping Hungarian investors to enter to the UK. These days, the team operates in a rapidly changing global environment – yet, its mission remains constant: to strengthen bilateral trade and investment links by building bridges between the two nations.

Leading the International Trade and Investment Section of the British Embassy in Budapest for over 15 years now, Country Director (Hungary), Dr Dóra Kulauzov highlights to Diplomacy&Trade that the United Kingdom remains one of the most significant foreign investors – currently the 8th largest in Hungary with a total investment stock of over GBP 3 billion, thanks to Hungary’s stable and favorable business environment. Over 600 British companies employ more than 45,000 people in Hungary – the equivalent of a medium-sized town. These firms operate across a wide range of sectors, from telecommunications and pharmaceuticals to food production and retail.
As for trade between the two countries, Hungary – which is the UK’s third largest export market in Central and Eastern Europe – has a significant surplus in its trade balance with the United Kingdom.

Close ties even after Brexit
Brexit introduced new layers of complexity to bilateral trade, but it did not slow the momentum. On the contrary, she says, both countries have demonstrated a clear commitment to maintaining close economic ties, and trade and investment data underpins this. The Country Director points out that following the introduction of the Trade and Continuity Agreement, total bilateral trade (goods and services) between Hungary and the UK dropped in 2021, but since then, it has increased by more than 50% to GBP 8.3 billion in 2024, reflecting on the resilience and depth of the relationship. British companies now rely more on the Embassy for guidance on customs procedures, regulatory frameworks and market entry rules. My team has responded by deepening its technical expertise and strengthening cooperation with Hungarian authorities and business associations. The result is a more strategic approach to supporting companies on both sides.
A number of leading Hungarian companies have established a presence in the United Kingdom, particularly in the aviation, pharmaceutical and construction sectors. They have chosen the UK as a strategic location for expansion, contributing to the dynamism of the British economy.

Promoting high-value opportunities
Trade promotion remains at the heart of the team’s activities together with market access work. British businesses rely on the Embassy for high quality market intelligence and regulatory advice. In recent years, the focus has shifted towards identifying high value opportunities and from traditional business-to-business towards government-to-government and business-to-government activities. “The new approach is that we should focus on activities that ‘only government can do’ as this provides the essence of value added of our support,” Dr Kulauzov notes.

The team consists of experienced Hungarian staff, combining global perspective with deep local insight. Each member leads a portfolio of priority sectors, keeping up-to-date on market developments and establishing strong relationships with key companies and other stakeholders. “The priority areas that the team is focusing on reflect on both countries’ strengths and ambitions and are rooted in the UK’s new Industrial Strategy: clean energy (including nuclear energy and renewables), advanced manufacturing (including space), financial services and life sciences,” she adds. Sustainability is a cross-cutting theme that increasingly shapes trade and investment considerations. The UK’s ambitious net zero commitments have created strong demand for British expertise in hydrogen, circular economy solutions and green finance. The Embassy promotes these capabilities in Hungary while supporting Hungarian companies investing in the UK’s green sectors.

Bilateral cooperation in focus
“Partnerships are essential to success. In Hungary, the team works closely – and has an excellent relationship – with the Ministry for Foreign Affairs and Trade, the Hungarian Investment Promotion Agency (HIPA), the Hungarian Export Promotion Agency (HEPA) as well as with chambers and business associations, regional development agencies, scientific organizations, and innovation hubs. We also cooperate with the Hungarian Embassy in London. A practical example of this cooperation is a bilateral forum, the so-called Chain Bridge Forum that we jointly organize on an annual basis with a view to fostering the bilateral relationship. Our local delivery partner is the British Chambers of Commerce in Hungary (BCCH), in which Ambassador Justin McKenzie Smith has the role of Honorary President and I have the role of Honorary Vice-President – these roles relate to positions held, not to the actual persons,” the Country Director explains.

Looking ahead, she expects to concentrate the work of the team even more on the highest value opportunities, keeping in mind that sustainability considerations and digital solutions linked to the application of artificial intelligence are rapidly emerging as key areas of mutual interest. “Clean energy and energy security will remain central priorities. Digital transformation – including artificial intelligence, cybersecurity, and fintech – will continue to gain importance. Supply chain diversification is likely to create new opportunities for cooperation, particularly in advanced manufacturing. Space research is one of the most rapidly growing fields where there are a number of emerging opportunities for deeper collaboration. In line with the changing external environment, our overarching goal remains the same: to ensure that the UK–Hungary bilateral trade and investment relationship is resilient and mutually beneficial.”

As global challenges evolve, the British Embassy’s trade and investment team stands ready to continue to build bridges between the two nations to generate growth and prosperity both for Hungary and the United Kingdom.