Poland International Trade

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

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

Background History Population: 38,635,144 (2004) Age 0-14= 16.7% Population Growth Rate: .03% Hungary’s= -.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

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

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 Poland’s 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/countries/pl/pl_trade.html

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/countries/pl/pl_trade.html

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?did=24

Trade Organizations World Trade Organization European Union (2004) July 1, 1995 Increase of Trade % of GDP after joining European Union (2004) Poland’s 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/countries/pl/pl_trade.html

Economics Poland’s 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/

Economics Poland’s growth rate negative initially due to political and economic reform. Poland has had a higher growth rate annually than the world’s avg. and EU avg. Except 2001 Direct relation with increase in real GDP http://devdata.worldbank.org.proxy.lib.ohio-state.edu/dataonline/

Total Exports & Imports $ 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

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/countries/poland.html

Imports Main Import Partners European Union- 65% Rest of World- 35% 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/countries/poland.html

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/

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

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

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

Net Exports Poland’s 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/

Poland & Hungary Poland & Hungary very similar paths of transition. Communism fell at almost same time (1989-1991) Both declared “shock therapy” Hungary’s 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 Poland’s shock therapy was effective very quickly Modern Governments Poland- Republic Hungary- Parliamentary Democracy http://devdata.worldbank.org.proxy.lib.ohio-state.edu/dataonline/

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

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