The FINANCIAL — Trade turnover between Georgia and Poland came to USD 91 million in 2012, exceeding the previous year’s data by 26 percent.
Representatives from the Ministry of Economy and Sustainable Development of Georgia, the Embassy of Poland in Georgia and Polish businessmen, say that the economic relationship between Poland and Georgia is developing and improving further yet.
“Poland invested USD 2 million in Georgia’s economy in 2012 which was oriented on the development of the healthcare sector,” said Genadi Arveladze, Head of the Foreign Trade and International Economic Relations Department at the Ministry of Economy and Sustainable Development of Georgia. “Poland is the leading importer country of Georgian wine. Its export to Poland is increasing year on year and reached a total value of USD 2.7 million in 2012, which is 21 percent higher than the data of 2011. Trade relations between the two countries are developing and improving,” he added.
“It is also notable that regional cooperation between Poland and Georgia is very active nowadays. This is proven by the fact that there are seven twinned cities between the two countries. We will be seeing improvements in bilateral cooperation in the fields of agriculture, energy, the environment, tourism, attracting investments, culture and healthcare. The joint Georgian-Poland intergovernmental commission on economic cooperation affairs has been working on these issues since 2010,” Arveladze said.
“Poland’s interest in the Georgian economy and its potential is increasing, especially in negotiations with the EU on a free trade agreement. We hope that this agreement will stimulate an increase in trade turnover and export between Poland and Georgia as well as an increase in Polish investments in our country. Georgia intends to deepen cooperation with Poland in the fields of tourism and transportation,” Arveladze added.
What Poland has to offer Georgia is its experience in transition, both in regard to business and public administration, according to Anna Warmińska, Chargé d’Affaires of the Embassy of Poland in Georgia.
“We went through all the reforms related to building a well-functioning market economy and democratic state and we can now share this experience of ours. For the few years we have been supporting regional development and the development of local government in Georgia, many projects have been aimed at encouraging entrepreneurship, especially in rural areas. And just a recent example: as competition protection is one of the priorities of the new government, in February we organised a week-long, comprehensive study visit to Poland for the team implementing this reform here in Georgia,” Warmińska said.
“One of the fields with the best prospects that could bring considerable benefits to both sides is the development of financial markets. The Polish stock exchange, the largest and most dynamic one in the region, offers access to capital for Georgian companies, both private and those to be privatised. We are also ready to share our experience on building domestic financial markets,” Warmińska added.
Teliani Valley Polska is listed on the Warsaw Stock Exchange, according to WSE. This is a partner company of Teliani Valley Georgia and provides the distribution of Georgian wine on the Polish market. Tea Kikvadze, Head of the Marketing Division of Teliani Valley, said that the Georgian company is not listed on WSE yet, but the negotiations have already started.
“From the early 1990s Polish business went through hard times and had to undergo restructuring a number of times. That is why the current crisis found them in good shape,” said Maciej Chrzanowski, Economic Officer at the Polish Embassy. “Such experience gives them an edge when working in post-soviet markets – a transition economy is their natural environment. We are seeing growing interest of Polish companies in the Georgian market. Most of them are exporters who are looking for local partners, clients or distributors. Some are interested in investing here. We are certainly open to working with the Georgian companies interested in buying or distributing Polish products or looking for investors. The Embassy co-organises business missions on a regular basis; in the nearest future we expect there to be some in the construction sector and green technologies,” he added.
Polish export is well-diversified, though the top positions are held by machinery and electric equipment, including cars, agricultural products and foodstuffs, according to Chrzanowski. As he said, Polish businessmen see good perspective in Georgia for such products as foodstuffs, construction materials, buses and green technology.
The total value of Polish export to Georgia amounted to a sum of USD 86.8 million in 2012, while its export globally reached USD 182,718 million, according to the Central Statistical Office of the Republic of Poland. In 2011 the value of Poland’s export to Georgia reached USD 64.1 million and globally – USD 190,248 million.
In 2012, the growth of Polish export to Georgia was 35.4 percent, compared to -4.0 percent globally. As for 2011, that year the growth of Polish export was 25.4 percent, compared to 19.1 percent globally.
The Central Statistical Office of the Republic of Poland provides information about Georgia’s share of Polish export according to which its share was 0.05 in 2012 and 0.03 in 2011.
The statistics of Polish imports globally and from Georgia are as follows and show that globally, the country’s import reached USD 195,438 million in 2012 and USD 212,331 million in 2011, while from Georgia the amount was USD 9.6 million in 2012 and USD 10.7 – in 2011.
-8.0 percent was the growth of Polish imports globally in 2012 and 19.2 percent – in 2011, while the growth of Polish imports from Georgia was -10.0 in 2012 and 15.5 – in 2011.
The Georgian share of Polish import was 0.0049 in 2012 and 0.0050 in 2011.
Poland to Georgia imports to export was 11 percent in 2012 and 17 percent in 2011.
As for Georgia’s total export, it was USD 2,377,455.0 in 2012 and 2,189,135.8 in 2011. In January this year total export had reached USD 196,294.1.
Georgia’s export to Poland reached USD 5,310,100 in 2012 and USD 452,600 in the first month of 2013, according to the National Statistics Office of Georgia. Last year the top products exported to Poland were: 859,960 litres of wine, 304,000 tonnes of nuts and 5 automobiles. As for this year’s top exported products, they are as follows: 14,100 tonnes of vegetables, 22,000 tonnes of nuts and 70,529 litres of wine.
The National Statistics Office of Georgia provided the list of products that are imported to Georgia from Poland. In 2012 it imported 177,500 tonnes of treatment facilities, 229 tractors and 382,100 tonnes of cosmetics. As for January 2013, 22,300 tonnes of treatment facilities, 43,800 tonnes of cosmetics and 25,900 tonnes of perfume were imported.
Mamuka Saakashvili, Head of Designicity, a Georgian exclusive distributor of five Polish construction-decorative materials manufacturers, said that their Polish partners are very motivated about entering the Georgian market. “Polish business is entering the Georgian market step by step by developing their marketing here first. They have a European business vision which is acceptable for us as we are oriented on high quality products and Europe. As Georgia and Poland are friendly countries, the attitude of Georgian customers when it comes Polish products is very loyal compared to those of other countries. Out of the most successful projects that we have implemented with Polish partners, I would single out a musical centre in Batumi and Poti’s theatre,” said Saakashvili.
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