PM (Polska-Austria – 4964 – 3.05.) Polish-Austrian trade picks up            

For many years Poland has been one of Austria’s important trade partners. In 2008 Polish-Austrian trade amounted to EUR 4.7 bln according to Ministry of Economy data, 21 pct growth compared with 2007. Polish exports stood at EUR 2.25 bln (rise of 16.8 pct) while imports amounted to EUR 2.51 bln (25 pct increase). The negative balance of trade was EUR 270 mln.           

As regards imports of Austrian products, Poland was third in 2008 among Central and Eastern Europe partners (following the Czech Republic and Hungary).Austria’s present contribution to Poland’s total trade amounts to around 1.8 pct. As regards Poland’s total global trade, Austria is 15^th among the most important export markets and 17^th among import markets.           

Around 2619 Polish exporters (increase of 300 companies) in 2008 delivered goods to Austria. Around 450 Austrian companies are doing business in Poland. The total value of direct Austrian investments in Poland amount to around EUR 4.3 bln which is around 5% of all foreign capital investments in Poland, ranking Austria in 9^th place among foreign investors. Austrian investors focus activities on real estate, the wood and paper industry, foodstuffs, processing plastics, bank services and special construction services.  The largest investors are Immofinanz (real estate),  Europolis (real estate), Bau Holding AG (hotels, office buildings), Raiffeisen Zentralbank (banking), Rigips Austria GmbH and Laier (building materials), Wienerberger (construction ceramics), Porr International (hotels), Warimpex (office buildings, hotels), Henkel CEE (chemicals), and others. The Department of Trade and Investment Promotion Vienna claims Austrian investments in Poland grew more than EUR 500 mln in 2008. Austrian investment capital in Poland will probably be less in 2009 than in the previous year.           

There are 21 direct Polish investors in Austria holding stock or shares in companies with head offices in Austria. The value of finance contributed by Polish businesses to Austrian companies in 2007 in the form of purchases of shares, stock, capital surcharges, reinvested profits and the balance of credit traffic between capital-linked business, amounted to EUR 18.5 mln. Polish liabilities stemming from commitment of Polish company capital in Austria at the close of 2007 stood at a total value of EUR 124.7 mln. Apart from Złomrex, the largest investor, the group of Polish investors also includes such companies as 4LOOK Technika Okienna GmbH – Reprasentanz Osterreich (distribution of Polish skylights and aluminium elements), Olgierd Kajak – offizieller Dealer von Yacht Service aus Polen (Nowe Miasto Lubawskie near Iława) and others.            

Poland’s entry to the European Union resulted in both Polish and EU businesses reaching for foreign trade preferences within the framework of the possibilities and freedoms created by the EU for trade between member countries, i.e. by eliminating trade barriers between members, pursuing a common foreign policy, ensuring uniform legal norms and full freedom of traffic of persons within the Union, pursuing common legal regulations, standardising member countries’ economic structures, levelling the economic growth of regions and, thereby, improving living standards.           

Polish export products in general enjoy a good reputation on the Austrian market and will surely encounter great interest among consumers. But such simple transformation is unlikely since Austrians are strongly attached to articles and products which they have purchased over long periods – so-called traditional consumption, confidence in recognised brands and producers. What is required to change habits is a promotion campaign of several stages pursued over a long period for the same group of customers with access to a product and its regular high quality ensured. Austrian businesspersons display a different approach to issues concerning current imports from Poland. In such matters decisions on purchases and possible cooperation are taken almost off the cuff, should no long-term contractual obligations exist. Due to the omnipresent trade stagnation, Austrian businesses take very great care in their trade operations – including imports from Poland.           

The Department of Trade and Investment Promotion is directing great attention to the sector of the Austrian market dealing with renewable energy sources (e.g. biogas) as a future field of Polish-Austrian economic cooperation.           

Mention should be made of another positive example of Polish activity on the Austrian market – the high ranking presence  of Polish Province Administration, City and Commune Offices and the DTIP-Vienna at the Real Vienna International Real Estate and Investments Fair in May 2009 (www.realvienna.com). Nineteen exhibitors will be presenting their offers at the “Polish Island”.   

Jerzy Jędrzejewski, Counsellor – HeadDepartment of Trade and Investment PromotionEmbassy of Poland in Vienna