Nearly 60% of public procurement in electrical engineering and electronics in the last 2 years has been won by companies from China and Turkey. This is shown by the observations of the Bulgarian Electrical Engineering and Electronics Association (BASEL). Bulgarian manufacturers are facing a decline in production and the risk of closing down enterprises.
„European legislation allows the exclusion of participants from third countries in tenders if over 50% of their products are manufactured in third countries. EU energy directives give preferences to companies whose products are manufactured in Europe. We appeal to the Bulgarian government to comply with the rule that EU funding goes to companies from the European Union. Over the last 2 years, companies from China and Turkey have been financed with European funds in our country.“ This was stated by Dr. Eng. Dimitar Beleliev, Chairman of the Governing Board of BASEL.
In 2019 - 2023, the ratio between imports from the EU to Bulgaria and those from third countries shows a negative trend. Expectations for 2024 are that imports from third countries in our country will almost equal those from the EU. Bulgarian and European companies are losing positions in their own markets. Among the advantages of China and Turkey are low production costs and the use of state-subsidized or cheaper energy sources. Bulgarian manufacturers comply with strict requirements for safety, quality and sustainability, which increases their costs. In contrast, those from China and Turkey often do not comply with such standards.
„From 2016 to 2024 (except for 2022), the electrical industry is in first place in terms of exports from all sectors of the processing industry in the country. If public tenders in our country continue to be won by companies from China and Turkey, Bulgarian enterprises will be pushed out of the market, and this will lead to job losses and a decline in the country's economic growth“, explains Dr. Eng. Dimitar Beleliev.
BASEL appeals for ensuring an advantage for Bulgarian and European products in tenders, especially when they meet higher quality and environmental standards – as in European legislation, as well as the introduction of a mechanism to ensure that the production of goods from third countries meets the same quality and sustainability standards as those imposed on European producers.