Maltese-Spanish Chamber of Commerce to boost business links

The idea to set up a Maltese-Spanish Chamber of Commerce has been in the pipeline for many years, according to the new organisation's president, Francis J. Vassallo, and all Spanish ambassadors supported the idea "but none as much as this ambassador who really pushed it and made sure it really did happen".

The Spanish Ambassador, Maria Isabel Vicandi, who was interviewed by The Times Business together with Mr Vassallo, believes there is great potential for the strengthening of business ties between Malta and Spain.

"Spain is a market of 45 million consumers and this is not being exploited enough by Maltese society and the business community. We do have historic relations, such as when the Knights were here, but now we must look to the future. Spain is a very open economy, the eighth largest one in the world. The legal systems of Spain and Malta are very similar, which should facilitate business links. Also, Spain is a gateway to Latin America, which is an added attraction for Maltese business," she says.

The Spanish-Maltese Chamber of Commerce will be officially launched this evening at a reception at the Spanish Ambassador's residence in Balzan in the presence of Finance Minister Tonio Fenech, signalling the Maltese government's backing for this new business organisation.

The new Chamber was also given full recognition by the Chamber of Commerce, Industry and Enterprise.

Mr Vassallo explains that the newly-set-up Chamber will be specifically focused on business development and the exchange and promotion of trade between the two countries.

"We will work closely with both embassies in this regard. More importantly, once we get recognition from the Spanish government the Spanish-Maltese Chamber of Commerce will officially affiliate itself with the Madrid Chamber of Commerce, the Barcelona Chamber of Commerce, the Valencia Chamber of Commerce and possibly also the Bilbao Chamber of Commerce."

Mr Vassallo explains the new Chamber wants to make the Spanish business sector more aware of Malta and to help Maltese businesses have easier access to Spanish business circles.

"Today the Maltese business community imports a lot of products from Spain, but we want to ensure that Maltese businesses have an easy access to Spain. For example, a person from Malta who wants to go to Spain might have an idea from the internet on whom to go to, but then it might be very difficult for him to establish meetings. Through the interaction of the respective chambers we can make sure these meetings materialise," he says.

Ms Vicandi believes the Maltese-Spanish Chamber of Commerce will be a very important instrument in helping to exploit the potential the two countries have in trade, investment and operations in third countries.

"Until now we did not have a specific institution to develop these economic sectors. Many business people in Malta have been asking for this type of organisation to help promote business," she adds.

The Spanish Ambassador also stresses the importance of the Spanish government recognising the Maltese-Spanish Chamber of Commerce.

"From now on we hope that with the recognition of the Chamber by the Maltese government and the future recognition by the Spanish government we will be able to develop the potential for better commercial ties between the two countries," she says.

Ms Vicandi says that while the Spanish pharmaceutical and financial sectors are very active in Malta, tourism has the potential for growth and so does Spanish investment in tourism. She points out, though, that 50,000 Spanish tourists and 9,000 Spanish students visit Malta every year.

The ambassador highlights the renewable energy sector as one area which offers scope for greater cooperation.

"The EU has many important commitments in this area, there is the Copenhagen summit at the end of the year and the EU wants to be an example to other countries in tackling climate change. The next Spanish EU presidency (January 2010) is very committed to this and so is Malta.

Spain has a large number of companies dealing in renewable energy sources, and we think this is a sector in which we can cooperate."

Ms Vicandi explains that Malta's EU membership is a huge attraction for Spanish businesses and since 2004 trade between the two countries has increased "at an extraordinary rate".

"Eighty per cent of Spanish exports and imports are within Europe. Seventy-five per cent of our national regulations and laws are either imposed or inspired by the European Union, which means we have a similar legal framework. Also, Malta is only two hours away from Spain. The fact that Malta is an English-speaking country obviously helps a lot - English being the international language of business. I am always impressed by the level of the political and business class in Malta and I am very aware of how professional and accessible Maltese society is," she says.

Mr Vassallo says that the signing of a double taxation agreement between Malta and Spain was certainly an important development.

"Previously Spain considered Malta to be on the blacklist of financial services, but this is no longer the case. However, this is not known by everyone. Financial professionals are aware of this change but not all their clients are. We will be organising a lot of seminars in Spain not only to promote Malta's financial services sector but also our industry sector," he says.

Mr Vassallo explains that the new Chamber will also act as a lobby group. "One of the problems we have at the moment in our quest to promote business links between Malta and Spain is the air link which is very weak. In fact I am shortly going to Madrid to try and promote a better air link between the two countries. Business comes to a market when it is easy for people to go to that market."

He says Spain is an important market and that Malta is also working very hard to establish links with South America - Spain is a very important link for Malta in that aspect. Mr Vassallo points out that thanks to an agreement between Malta and Spain, Spanish embassies in Latin America provide consular services for Malta - an important link for the Maltese business community.

The Chamber, Mr Vassallo says proudly, came together through a group of volunteers who had one thing in common: love of Spain and a willingness to increase business with this country.

"It is an emotional initiative which is very important. All the people on the committee are dedicated to Spain and are Spanish-speaking. One of the vice-presidents is a Spanish lawyer working in Madrid who will no doubt help with the lobbying effort," he says.