Iran, Poland take strides towards better economic cooperation

(Monday, November 5, 2018) 08:54

As two countries with huge potential for economic growth, Iran and Poland are taking new measures for developing non-oil economic cooperation with SMEs on focus.

As part of the efforts regarding the mentioned economic goals, the two sides are focusing on aspects like facilitation of collaboration between the two countries’ companies and traders and also exchanging trade delegations in order for their businessmen to get familiar with the potentials of the target markets.

In doing so, recently a high-ranking trade delegation comprising businessmen, officials and representatives from the Polish Ministry of Entrepreneurship and Technology have visited Tehran in association with Polish Investment & Trade Agency, Foreign Trade Office in Tehran to both attend the 14th International Exhibition for Mines, Construction Machinery and Related Industry and Equipment (Iran ConMin 2018) and also assess Iran’s market for further potential cooperation.

Attended by officials and journalists from different agencies, a press conference was held on November 3 in Tehran in order to introduce the country’s capabilities and potentials for future cooperation with Iran.

What comes below is a summary of the information shared at the above mentioned events.

The Polish industry & foreign trade

Poland is the eighth largest economy in the European Union and the largest among the former Eastern Bloc members of the European Union. The largest component of its economy is the service sector (62.3 percent) followed by industry (34.2 percent) and agriculture (3.5 percent).

Experiencing a steady economic growth for the past 26 years, the country is significantly focusing on development of foreign trade in various fields including the industry sector in order for the expansion of economic growth both in EU and other regions including the Middle East.

One of the Polish government’s main steps for achieving this goal has been the establishment of Investment and Trade Agency offices in the countries which are going to be the target markets for future cooperation - which includes Agency’s Foreign Trade Office in Tehran.

The Polish Investment and Trade Agency (Polish: Polska Agencja Inwestycji i Handlu, abbreviated to PAIH) is a Polish government agency which promotes Poland’s trade sector, along with investment opportunities.

Aside from the promotion of Poland for economic investment, PAIH also assists investors to overcome the administrative and legal hurdles of investing in Poland or in destination markets. The agency conducts investor surveys to determine the outlook of the investment climate in Poland and over 52 target markets among which Iran stands as one with great potential.

Iran and Poland trade

Despite the quite unsatisfactory levels of trade, Iran and Poland have a long history in economic cooperation.
The trade turnover between the two countries has increased from $80 million in 2015 to about $230 million in 2017 of which the share of Iranian exports to Poland was about $90 and the Polish exports to Iran stood at about $140 million.

Crude oil and oil products, petrochemicals as well as food products have been among the top Iranian commodities being exported to the European country while agricultural machinery, food products, medical equipment and instruments, glass and home appliances are some of the main imported products from Poland in 2018.

According to Szumon Klus, the representative of the Ministry of Entrepreneurship and Technology of Poland, the trade turnover between the two countries in the first half of 2018 experienced a 20 percent increase compared to the last year’s figure most of which is due to the increase in exports from Iran to Poland.

Jaroslaw Kaczynski, the head of Polish Investment and Trade Agency, Foreign Trade Office in Tehran also said since March 2017 over 150 Iranian companies as well as 400 Polish counterparts have voiced interest for trade and investment and consequently received the Agency’s services and consult on the matter. This is a clear indication of the fact that, with the bases and conditions provided, there is a great tendency for economic cooperation in both sides.

“The Polish Investment and Trade Agency, Foreign Trade Office in Tehran is still open and this is a clear indication that the Polish government is looking forward for expansion of trade with Iran.” Klus said in the press conference.

Some of the Polish companies which participated in the Iran ConMin 2018 exhibition also expressed great interest in expanding their activities in Iran and hoped for further cooperation under desirable circumstances.

The two countries are also working on plans for exchanging trade delegations through chambers of commerce.

Ali Mahabadi Pour, the Iranian business development manager of the Polish Investment and Trade Agency, Foreign Trade Office in Tehran said a meeting of Iran-Poland Joint Economic Committee is scheduled to be held on November 12 in Tehran to further discuss the economic cooperation between the two countries.

The director explained that “establishing an Iran-Poland joint chamber of commerce is also on the agenda.”

Cooperation in mining industry
As the region’s leading trade fair for the construction machinery, mining equipment, building and natural stone sectors, Iran ConMin has been a well-established platform for presenting products, innovations and solutions in the mining industry to an attractive clientele in one of the most important markets in the Middle East.

The 14th International Exhibition for Mines, Construction Machinery and Related Industry and Equipment (Iran ConMin 2018) which was held from November 2 to 5 at Tehran Permanent International Fairgrounds was seen a good starting point for tapping the great potentials of the two countries for economic cooperation.

Moving in the path of becoming one of the EU’s top industrialized countries, Poland has advanced greatly in production of mining, industrial and agricultural machinery. Since the country has some of the EU’s biggest coal and lignite mines the country’s mining industry and machinery is built on years of experience in this area.

In 2017, Poland produced 70.4 million tons (mt) of coal, becoming the Eurozone’s 10th biggest coal producing country. Lignite, copper and salt are also among other top mining products in this country.

Poland’s industrial machinery are currently being exported to a great number of counties among which Russia, Ukraine, China, Argentina, India, Kazakhstan and Turkey could be mentioned.

On the other hand, Iran is one of the most important mineral producers in the world, ranked among 15 major mineral-rich countries, holding some 68 types of minerals, 37 billion tons of proven reserves and more than 57 billion tons of potential reserves worth $770 billion.

Therefore, considering the two sides’ huge potential in this area, mining sector could be considered as a turning point for the two countries’ plans for developing their economic relations.

(Source: Tehran Times)