TEHRAN - Janusz Piechocinski, the Polish deputy prime minister and minister of economy, says in an exclusive interview with the Tehran Times that his country looks at Iran as a “very attractive business partner” in the world.

Piechocinski headed a group to Tehran with representatives of some 60 Polish businesses from September 26 to 28. During his stay he signed a memorandum of understanding with Iranian Minister of Finance and Economic Affairs Ali Tayyebnia.


Following is the text of interview with Piechocinski:

Q: What are the new areas of cooperation between Poland and Iran?

A: Poland finds Iran a very attractive business partner, not only in the Middle East, but also on the global scale. We attach great importance to the development of business ties between the two countries, which is reflected, inter alia, in the launch of the special- aimed at the promotion of bilateral economic cooperation - “GO IRAN” program.

We are well aware of the great development potential of Iran, stemming, inter alia, from its large reserves of fossil fuels, which include the world’s largest natural gas supply and the fourth-largest proven oil reserves, as well as from high dynamics of its scientific growth, manifested in impressive achievements of medicine, biotechnology, and nanotechnology.

Poland wishes to develop and strengthen bilateral ties, inter alia, in the following sectors of economy: raw materials and fuel industry, road and rail infrastructure, construction, pharmaceuticals, beauty products, energy efficiency, renewables, “green” technologies, food/food specialties, food-processing machinery, agricultural equipment, furniture, interior design, woodwork (doors and windows), medical devices, apparel, accessories, leather goods, consumer electronics and household appliances.

Raw materials and fuel industry – Poland is well aware of Iran’s. We have maintained contacts, which we hope, will result in mutually beneficial future business contracts. Our companies are already actively involved in the supplies of mining machinery and equipment. What is more, the supplies of Iranian oil and gas may allow the possibility for the European and Central Asian countries to become less dependent on the Russian energy resources.

Road and rail infrastructure, construction – Iran’s strategic location in the Middle East provides excellent opportunities for launching rail connections to the Central Asian countries. The implementation of these projects will involve significant investment. We are ready to cooperate both in the supplies of rolling stock, and construction materials, steel profiles, etc.

Pharmaceuticals, beauty products – international brands, are available on more than 130 foreign markets, even very remote ones, such as New Zealand or Trinidad and Tobago.

Poland also has a say in food and food specialties, food-processing machinery, agricultural equipment – competitive and renowned products, highest quality for reasonable price – meat, dairy, fruit and vegetables, sugar and chocolate confectionary.

Q: What is your view of the Iran-Poland relations in the next ten years?

A: Since the bilateral economic relations remain highly dependent on the sanctions regime, it’s hard to predict the exact trends and course of events.

Q: What requests do Warsaw make from Iran?

A: Poland wishes to maintain high-level economic dialogue with Iran. We hope that the conclusion of the economic cooperation agreement will boost our economic trade and investment. Poland would also like to invite the Iranian companies, investment funds, etc., to invest in Poland.
Poland’s accession to the EU in 2004 has created a number of opportunities and facilitations for both, the Polish and foreign entrepreneurs – the Polish businessmen gained access to new export support instruments while the others – an easier access to our home market.

We have created a comprehensive system of inbound investment promotion. Thanks to our efforts, we have become the undisputed leader in the Central - Eastern Europe in terms of FDI inflows, estimated at 160 billion euros in late 2013. Also, the most prestigious international rating agencies currently place Poland among the top three most attractive investment locations in Europe due to low investment risk, a stable economic and political situation and a large and competitive labor market.

What is more, foreign companies may benefit from special incentives and facilitations in case of investment in any of the 14 special economic zones located throughout Poland.

Q: Presently in which areas are bilateral ties favorable and in which areas should be enhanced?

A: Currently (2014), our bilateral trade focuses on in exportation – tractor units, food-processing machinery/equipment, household appliances (refrigerators), medical devices, trucks and in importation – pistachio nuts, raisins, coffee extracts/essences, dates, black tea.
Nonetheless, before the tightening of the economic sanctions (2009), we mainly exported – steel profiles, razors, coke and semi-coke, household appliances, marine cranes, motor vehicle parts, beauty products, glassware/ tableware, millstones, carbon electrodes, batteries, tractors, liquid pumps and imported – pistachios, burglar/ fire alarms, polyethylene, dried grapes, pharmaceuticals, coffee extracts/ essences, dates, black tea, laptops, carpets, saffron, marble, etc.

Q: What are the technological and economic advantages of Poland?

A: The Polish economy is dynamic, open to foreign capital and new ideas. We have focused on promotion of innovative sectors of our economy, such as ICT, renewable energy, pharmaceuticals and biotechnology.
Poland’s 38-million strong consumer market is one of the biggest in Europe. The country’s favorable location, in the heart of Europe, where the main communication routs intersect, makes it possible to export goods to all European countries and thus reach over 500 million consumers.
Well-educated Polish economists, engineers, IT specialists and scientists are highly sought-after and appreciated employees who find employment in IT companies, R&D centers and scientific institutes.  Every year, the number of graduates of Polish universities increase, including faculties useful in high-tech industries.

The country’s sustainable development has much to do with the solid economic foundations. The global economic crisis has not harmed Poland, which is the only country in Europe to have avoided a recession, and additionally has developed at the highest rate on the continent.

Q: In which areas are Warsaw’s policies influenced by the European Union?

A: The Polish economic policy has started to be heavily influenced by the EU policy-setting since Poland joined the European Union in 2004. There are many policy areas in which the EU has a profound impact on the Polish economy. The EU internal market with its principles of the free movement of persons, goods, services and capital has been a driving force behind the Polish economic growth since the beginning of the EU membership. The EU internal market law regulates 70 percent of the market for goods, affecting significantly the functioning of many branches of the European industry, including the Polish one.

The EU climate and energy policy is one of the important policy areas having a crucial impact on the Polish economic development. The EU ambitious greenhouse gas emissions reduction targets require technological modernization creating additional burden on the industry and has to be addressed very reasonably in order not to decrease the competitiveness of the Polish industry. Poland is trying its best not only to be influenced by the EU but also to make a footprint in the EU economic policy. That is why Poland has been very active in terms of the EU energy security and gave rise to the Energy Union concept.
In the remit of trade and investment policy, it is the EU, on behalf of its 28 member countries, who manages trade and investment relations with non-EU countries. The EU has exclusive power to legislate on trade matters and to conclude international trade agreements, based on WTO rules.

Macroeconomic management within the framework of the Europe2020 strategy and the European semester is another policy area with a strong impact on the Polish economy. Europe 2020 strategy - launched in 2010 - has emphasized the need for common action of member states for economic recovery and the implementation of reforms with three mutually reinforcing priorities: smart growth - developing an economy based on knowledge and innovation; innovative growth - promoting a more resource efficient, greener and more competitive economy and inclusive growth - fostering a high employment economy delivering economic, social and territorial cohesion.

The new economic policy cycle, the European Semester has been in progress since 2011. It provides an integrated surveillance framework for the implementation of fiscal policies under the Stability and Growth Pact as well as the implementation of structural reforms through national reform programs. The European Semester featuring the country-specific recommendations from the European Commission synchronizes the process of the national reform programs, thus having a tremendous impact on the Polish economy.

The above-mentioned policy areas are the prominent examples of the influence the EU has been exerting on the Polish economic development for more than a decade.