Advanced exporters
Australian exporters have an opportunity in education services as well. Specifically in the areas of increased development of cooperative research, exchange programs, specific tender and training opportunities, and the promotion of Australia’s capability in vocational education, according to Sanda.
Knowledge-based initiatives are already happening between Poland and Australia, with educational institutions active in both student recruitment and cooperative exchanges. “QUT has recently signed an agreement with the Warsaw School of Economics,” says Sanda. “Australia also works closely with Polish companies and government agencies in cooperation on carbon capture and storage initiatives. Through the Australian initiative, Global Carbon Capture and Storage Institute, Austrade will coordinate a seminar in Poland to promote increased engagement in this sector.”
Barriers
“There are no barriers except distance!” according to Witkowski. All we need do is think outside the square, he says, adding: “In Australia’s favour, the EU recognises us as a key trader so that’s a great advantage.” Structurally, Poland is the largest of the new EU member states and conforms to EU requirements and regulations in most cases, though Sanda advises some processes differ slightly, such as the tender process. Seek advice through agencies such as Austrade.
Last month, the Polish Information and Foreign Investment Agency and Warsaw Business Journal presented a guide entitled ‘Investing in Poland 2010’, which indicated there were still investment barriers to overcome including “the need to limit bureaucracy, streamline the Polish decision and administration procedures and reform Poland’s legal system”. However, these barriers are certainly not a deterrent. Poland’s assets include stable economic laws, highly qualified professionals and comparatively low labour costs, says Slawomir Majman, head of the Polish Information and Foreign Investment Agency, and they are being noticed.
The future
Chairman of the British-Polish Chamber of Commerce Martin Oxley says that not only are these factors attractive, but companies are now looking to Poland as a regional platform for establishing operations in Central Europe or in the new markets of Europe: “What you’re seeing take place is a shift going on in the geographic map of business in Europe.” All the experts agree, Australia now has a golden opportunity put itself on this potentially lucrative map.
“Poles have a right to regard themselves as relative winners in the crisis period,” agrees Pawlak. “Any country whose consumption is growing, whose financial system is not experiencing tremors and whose economy has been bolstered by a potent injection of €100 billion of structural funds can well regard itself as a winner.” As a member of the European Union since May 2004, this cash injection comes as a result of the EU’s National Cohesion Strategy for Poland’s development. In the years 2007–2013, Poland is set to become the biggest beneficiary in the EU of money for project development. The country also intends to switch its currency to the euro on January 1, 2012 following constitutional changes that will allow it to adopt the currency.
Interestingly, it is possible for Australian companies to tap into Poland’s EU funding, says Sanda: “A large proportion of the EU money is going into regional infrastructure and development, and it is possible to access those funds. Obviously, you definitely need on ground assistance from a Polish company that has familiarity with how the process works and what funds are available.”
Poland and Australia
The International Monetary Fund (IMF) says Poland’s resilience owes much to sound economic policies, as is the case in Australia: “Because Poland entered the crisis with relatively healthy fundamentals, the government has been able to implement countercyclical policies. These, in turn, are now cushioning the downturn.” And the only way is up, with the IMF expecting Poland’s GDP to grow by 2.2 percent in 2010.
Australia is currently ranked 51st on Poland’s trading partner list, which Germany dominates as it supplies almost a third of Polish imports. Historically Australia has exported such items as cheese, skins and wool to Poland, but there is now an advanced and technological focus, with medical and veterinary items, alcohol and civil engineering equipment top of the list, explains Kevin Witkowski, president of the Polish Chamber of Commerce Australia. However, the relationship is a bit out of whack, he notes: “In 2007/08, we exported $27 million in products to Poland, but imported $291 million worth from Poland.”
Trade links
Polish Chamber of Commerce Australia: www.polishchamber.com
Polish Australian Chamber of Commerce and Industry: www.pacci.org.au
Ministry of Foreign Affairs of the Republic of Poland: www.mfa.gov.pl
Austrade: www.austrade.gov.au/Poland
Polish Information and Foreign Investment Agency: www.paiz.gov.pl
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