British exporters "could be doing so much better in Poland" – UKTI, BPCC
(Date: 2011-12-20)
Since it joined the EU in 2004, Poland has become an increasingly important trade partner for the UK. Poland has leapt up the ranking of British export markets and import sources, from 26th place in 2005 to 15th place in 2010.
Yet although UK exports to Poland have soared over that period, Polish exports to the UK have grown even faster – to the extent that Poland today has a greater trade surplus with the UK than with any other country! Britain is now Poland's No.2 export market (after Germany), having overtaken Italy and then France.
Poland's consumer market is flourishing – the current pace of growth is 11.4% year. GDP is expected to have grown by over 4% during the course of 2011. Investment, both private and public sector, is doing well and Polish manufacturing and exports are holding up extremely well.
So why aren't more British exporters doing business with Poland?
"If you're already selling to France, Spain, Holland, Germany, Scandinavia or Italy – there's no reason whatsoever why you shouldn't be present on the Polish market. Why surrender a growth market of 38 million consumers to your continental competitors?" asks Martin Oxley, the country head of UKTI for Poland. "Where are the iconic British food brands on Poland's supermarket shelves?"
"We analysed UK-Polish trade stats for the past three years and we've identified key areas in which the UK currently has a trade surplus with Poland, and where British exporters could do better still. These include high-end food and clothing, quality textiles, pharmaceutical products, specialty chemicals and plastics. The fact that there are niches where specialist UK exporters are doing well suggests that there's room for growth in these sectors. But we should also not ignore those areas in which the UK is currently not doing so well. It may well be that our companies have not yet looked at these specific markets," he said.
One of the side-effects of Poland's massive trade surplus with the UK is that there are many trucks returning empty to Poland. This is an opportunity for British exporters, who can use this situation to get really good deals on their logistics.
"Next year, we will be celebrating British Week in Warsaw, to coincide with the Diamond Jubilee, Euro 2012 and the London Olympics," says Joe Tunney, CEO of the British Polish Chamber of Commerce. "One of our members, Raben Group, has offered to bring British export goods over to Poland free of charge for the event. If you're a UK exporter and you've yet to do business in Poland, British Week will be opportunity for you to dip a toe in the water at minimal cost," said Mr Tunney.
"We've been told for years that there's a goldmine for British exporters to be found in the BRICS markets, but the truth is that bilateral trade between the UK and Poland is actually larger than it is between Brazil, Russia, India or South Africa. Poland offers the security of EU law, is 48 hours by truck from your factory, and is one of Europe's fastest growing markets", said Mr Tunney.
For information about British –Polish economic cooperation:
Michael Dembinski, Head of Policy
British-Polish Chamber of Commerce (BPCC)
Established in 1992 the BPCC has grown to become Poland’s leading international voice of business. It is a not for profit membership comprising 500 member companies which represent 25% of the total foreign direct investment in Poland since 1990. The BPCC’s mission is to promote international business, cultural relations and leadership in sustainable business. The BPCC is a recognised public voice on British Polish bilateral relations working closely with business and government to create a better business environment. A key goal of the organisation is to promote corporate social responsibility and sustainable economic development.