Poland International Trade

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PolandInternational Trade
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Background History
-Poland is located in the northern portion of
central Europe
-The capital of Poland is Warsaw.
http//www.cia.gov/cia/publications/factbook/geos/
pl.html
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Background History

• Size 312,685 km (slightly smaller than New
  Mexico)
• Land 304,465 km
• Water 8,220 km
• Coastline 491 km (Baltic Sea)
• Terrain Mostly flat, mountainous along southern
  border
• Major Natural Resources coal, sulfur, copper,
  and silver.

http//www.cia.gov/cia/publications/factbook/geos/
pl.html
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Background History

• Population 38,635,144 (2004)
• Age 0-14 16.7
• Age 15-64 70.3
• Age 65 13
• Population Growth Rate .03
• Hungarys -.26, Czech Republic -.05, Germany
  0, Belarus -.09, Ukraine -.63,
  Lithuania -.3, Slovakia .15
• Life Expectancy 74.74 years old

http//www.cia.gov/cia/publications/factbook/geos/
pl.html
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Government

• Type Republic
• Divided into 16 provinces
• President elected by open elections
• Bi-cameral legislature
• Senate (100 seats)
• Sejm (460 seats)

http//www.cia.gov/cia/publications/factbook/geos/
pl.html
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International Trade

• 1945-1970 Communist government restricts trade
  to only Soviet countries.
• Poland became very dependent on Soviet Union.
• 1971-1980 Government restricts all western
  European trade.
• 1981-1990 Poland becomes the fifth largest ship
  producer in the world.
• Was most of Polands entire trade
• Export mostly to Soviet Union
• 1986- Poland amends laws and allows bonds to be
  sold to foreign investors.
• State enterprises were allowed to issue bonds and
  join joint ventures with foreign investment.
• Did not raise FDI enough to see any change

http//www.pbs.org/wgbh/commandingheights/lo/count
ries/pl/pl_trade.html
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International Trade in Transition

• 1989- 2 tier banking system created
• The Law on Economic Activity
• Small step to correct rising inflation
• 1990-1991 Shock Therapy opens up trade
  markets.
• Significant increases in FDI and Trade of GDP
• Increased the previously falling real GDP
• Corrected the out of control inflation
• Laws making it safer for foreign investors were
  put in place
• Foreign investors mostly only invested if they
  received management rights

http//www.pbs.org/wgbh/commandingheights/lo/count
ries/pl/pl_trade.html
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Trade Organizations

• PHARE signed in 1989
• Designed to bring aid from European Communities
  to Poland and Hungary
• Assist with political change and new markets
• First step in eventual admittance to EU
• The Efta-Poland free trade agreement
• Signed in Geneva, Switzerland on 10 December
  1992, came into effect Sept. 1, 1994.
• Main Objective
• To enhance the development of world trade by
  removing international trade barriers.

http//intl.econ.cuhk.edu.hk/rta/index.php?did24
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Trade Organizations

• World Trade Organization
• July 1, 1995
• Increase of Trade of GDP after joining
• European Union (2004)
• Polands foreign trade policy changed drastically
  after joining the EU.
• Poland was in direct connection with the
  economically successful western European
  Countries.
• Tightened tariffs and increased customs controls
  on the eastern border which is the external
  border of the European Union.

http//www.pbs.org/wgbh/commandingheights/lo/count
ries/pl/pl_trade.html
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Economics

• Polands real GDP has steadily risen in the past
  25 years since fall of Communism.
• Drop between 1988-1990 from political
  instability.
• Avg. real GDP growth Rate 3.5
• Current real GDP growth Rate 5

http//devdata.worldbank.org.proxy.lib.ohio-state.
edu/dataonline/
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Economics

• Polands growth rate negative initially due to
  political and economic reform.
• Poland has had a higher growth rate annually than
  the worlds avg. and EU avg.
• Except 2001
• Direct relation with increase in real GDP

http//devdata.worldbank.org.proxy.lib.ohio-state.
edu/dataonline/
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Total Exports Imports

• Total Exports (2005)
• 92,720,000,000
• 31st largest in the world
• Total Imports (2005)
• 95,670,000,000
• 28th largest in the world

http//www.cia.gov/cia/publications/factbook/geos/
pl.html
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Exports

• Main Export Partners
• European Union- 70.5
• Germany- 30
• Italy- 6.1
• France- 6
• UK- 5.4
• Czech Republic- 4.3
• Netherlands- 4.3
• Rest of World- 29.5
• Russia, Hong Kong, United States

http//www.cia.gov/cia/publications/factbook/geos/
pl.html http//www.foreigntradeexchange.com/countr
ies/poland.html
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Imports

• Main Import Partners
• European Union- 65
• Germany- 24.4
• France- 6.7
• Italy- 8.5
• Rest of World- 35
• Russia- 7.3
• China- 4.6

http//www.cia.gov/cia/publications/factbook/geos/
pl.html http//www.foreigntradeexchange.com/countr
ies/poland.html
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Division of Trade

• Division of Trade (2 major divisions)
• Merchandise Exports/Imports
• Agriculture (raw materials)
• Crude materials except fuels, Livestock
• Food
• Exports- Potatoes, fruit, wheat
• Fuel
• Mostly from Russia
• Oil, natural gas
• Manufactures
• Export- Machinery, transport equipment, other
  misc. manufactured items
• Import- Chemicals, medicine, cars/motorcycles
• Ores metals
• Crude fertilizers, minerals, scrap metal, glass

http//devdata.worldbank.org.proxy.lib.ohio-state.
edu/dataonline/
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Merchandise Exports/Imports
http//devdata.worldbank.org.proxy.lib.ohio-state.
edu/dataonline/
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Commercial Service Exports/Imports

• Commercial Service Exports/Imports
• Computers/Communications and Services
• International telecommunications, postal,
  construction, all services-financial
• Insurance Financial Services
• Freight insurance, life insurance, foreign
  exchange transactions
• Transport Services
• Anything relating to the carriage of passengers
  or movement of freight
• Travel Services
• Goods and services consumed by travelers
• Lodging, meals

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Commercial Service Exports/Imports
http//devdata.worldbank.org.proxy.lib.ohio-state.
edu/dataonline/
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Net Exports
Polands international trade has shown
improvement in the last 4 years. Net exports are
moving toward the positive while total imports
continue to grow rapidly.
http//devdata.worldbank.org.proxy.lib.ohio-state.
edu/dataonline/
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Poland Hungary

• Poland Hungary very similar paths of
  transition.
• Communism fell at almost same time (1989-1991)
• Both declared shock therapy
• Hungarys much more gradual
• Led to a slower and less effective transition
  initially.
• Real wages plummeted in 1994-1995 bringing about
  a 2nd shock therapy
• Rebounded the economy
• Polands shock therapy was effective very quickly
• Modern Governments
• Poland- Republic
• Hungary- Parliamentary Democracy

http//devdata.worldbank.org.proxy.lib.ohio-state.
edu/dataonline/
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edu/dataonline/
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http//devdata.worldbank.org.proxy.lib.ohio-state.
edu/dataonline/