Trade Agreements Poland

In addition to what might be described as the “typical” problems of a centralized economy, Poland`s initial situation was characterized by a very high external debt compared to official creditors, both bilateral and commercial; a restriction that would require any liberalization programme in order to create a sufficiently strong external position capable of serving at least a small portion of that debt (i.e. the amounts due after the debt rescheduling). Poland`s situation was not typical of two other social policy issues: the role of farmers and workers. First, prior to the reform, agriculture was nominally controlled by the private sector, as most of the arable land was privately owned (78%). After the liberalization of food prices at the end of 1989, farmers first recorded large increases. As the latter were subsequently cancelled, farmers were angry and did not feel like they were benefiting from the reform process. Secondly, Poland had a particularly influential workforce, due to the emergence of the Polish socialist opposition within the Solidarity trade union, which later became a political force in Parliament. This strong labour position has always created strong pressure on wages and reduced the margin for privatization. The European Commission is currently negotiating or negotiating on behalf of the EU (but not yet in force), a series of trade agreements with third countries or groups of these countries, as well as investment agreements. The Ministry of Development identifies Polish interests in specific negotiations, coordinates the development of the Polish position and presents and defends this position in the EU forum. It is also responsible for coordinating the implementation of trade agreements concluded in Poland. First, while the current export structure still largely reflects the legacy of the old CAEM trading system, it also contains evidence that the trade structure is evolving towards new products. Accepting data limitations, the composition of lower-quality product exchanges delivered in the eastern bound market appears to be shifting to products that are competitive in Western markets.

This is clear from a comparison between the pre-reform composition of exports and the current export structure, which shows that the current export structure is comparable to that of exports that existed between Poland and the industrialized countries prior to the reform. It is interesting to note that trade with the former socialist countries (most of which come from the CAEM countries, the most important being Russia) has shifted to agricultural products derived from manufactured goods. Poland is close to completing the ratification of the URUGUAY Round GATT agreement, which will enter into force on 1 July 1995 with Poland`s accession to the World Trade Organization (WTO). Poland continues to negotiate a reintroduction protocol with the GATT.

Facebook Comments