Commission Report (2002): Poland

• Progress since the last Regular Report
• Overall assessment
• Conclusion

Chapter 26: External relations

Progress since the last Regular Report

Since the previous Regular Report, Poland has continued to align with the acquis on common commercial policy and to co-ordinate positions and policies within the World Trade Organisation with the EU, in particular with regard to the Doha Development Agenda negotiations.

As regards the common commercial policy, upon accession Poland will be required to align its tariffs with those of the EC. Poland's applied tariffs currently average 15.1% (MFN) on all products, 33.8% on agricultural products, 18.5% on fishery products and 9.9% on industrial products. By comparison, EC tariffs currently stand at 6.3% on all products, 16.2% on agricultural products, 12.4% on fishery products and 3.6% on industrial products.

In November 2001 the law on protection against excessive imports of textiles and clothes into the Polish customs territory and the law on protection against dumped imports of goods into the Polish customs territory came into force. The former law is applicable to textiles and clothing falling under the WTO Agreement on Textiles and Clothing (ATC). The trade defence measures and procedures specified in this law will respect the provisions laid down in the ATC. The list of textiles and clothing not subject to this law will be specified in an ordinance of the Council of Ministers. The latter law transposes the provisions of the acquis with respect to protection against dumped imports from countries not members of the European Community. For both laws the necessary secondary legislation has been adopted.

The law on protection against subsidised imports of goods into the Polish customs territory was adopted in June 2002. The law furthers alignment with the WTO Agreement on Subsidies and Countervailing Measures, and with the acquis regarding protection against subsidised imports from countries not members of the European Community.

There are no further developments to note concerning the acquis on dual-use goods. With regard to the acquis in the field of export credits, the law on interest subsidies for fixed-rate export credits became operational in December 2001. The law specifies the conditions for subsidising fixed-interest export credits from the state budget, bringing Polish legislation in line with the EC and OECD regulations. Institutionally the proposed system will be covered by the Programme for Subsidising Interests of Export Credits (DOKE), under which Bank Gospodarstwa Krajowego (state bank) and banks that extend export credits will effect interim settlements of their mutual obligations. Within the framework of this programme, banks may apply for state export financing support.

With regard to bilateral agreements with third countries, there have been few developments. The non-preferential agreement with the United States mentioned in last years report has been implemented. Poland has commenced discussions on a BIT with the Russian Federation. Within CEFTA, Poland signed the Additional Protocol No. 10 relating to the liberalisation of agricultural and food trade, and the Additional Protocol No. 11 relating to the rules of origin of goods.

In the area of development policy, co-operation and assistance, Poland continues to participate actively in the OECD's work and is adapting its development practices to the guidelines laid down by the Development Assistance Committee. For the implementation of humanitarian aid initiatives, the government co-operates with non-governmental organisations established in Poland. Total bilateral and multilateral external assistance given by Poland to developing and eastern countries in 2001 amounted EUR 48.7 million. More than EUR 200 million have been put aside in the form of highly preferential tied aid credits.

Overall assessment

The EU and Poland have established a framework for co-operation regarding WTO issues at both ministerial and departmental level. Poland has been supportive of EU policies and positions within the WTO framework, in particular during the preparation for and the launching of, the Doha Development agenda. Close co-ordination is needed and should continue to ensure the smooth alignment of Poland's GATS commitments with the EC's commitments and MFN exemptions. Steps have been defined to this extent. Poland is a signatory to the Information Technology Agreement, and an observer to the WTO plurilateral agreements on trade in Civil Aircraft and Government Procurement. With regard to the WTO Agreement on Trade in Textiles and Clothing (ATC), Poland has not used its third stage of integration under the ATC to align its integration programmes on those of the EC. As a result, some discrepancies remain.

Poland has reached a high level of alignment with the acquis in both the areas of export credits and dual use goods. In the case of the latter further alignment in particular regarding the list of dual use goods remains to be completed. Full alignment to the acquis, in particular the general export authorisations, can only take place upon accession. Poland keeps the industry regularly informed of developments in this field and has developed bilateral contacts with the EU Member States to exchange best practices on export control issues.

In addition to its bilateral free trade agreements with Estonia, Latvia and Lithuania, the EFTA countries, Turkey, Croatia and Israel, Poland is a member of CEFTA. Further efforts are required to ensure that Poland keeps the Union fully informed both about existing trade agreements and about any negotiations aimed at the conclusion of new trade agreements with a third country. Prior to accession Poland will need to renegotiate or renounce all international agreements concluded with third countries that are incompatible with its future obligations as an EU Member State, including the Friendship and Navigation Treaty with Japan. Decisive steps are needed, as a matter of urgency, to bring bilateral investment treaties in conformity with the Treaty obligations. Failure to do so will mean that the conflict between the bilateral investment treaties and Treaty obligations will need to be resolved in the Accession Treaty.

Poland's alignment with and future participation in the common commercial policy is administered by the Ministry of Economy. The administrative infrastructure which needs to be in place with respect to customs services is discussed in the chapter on customs union (Chapter 25 ­ Customs union).

Development and humanitarian aid are administered by the Ministry of Foreign Affairs.

Conclusion

In its 1997 Opinion, the Commission concluded that Poland was well placed to meet Community requirements in this field, provided existing trade barriers were eliminated so as to align more closely with the Community's trade regime.

Since that time, Poland has made gradual progress and has achieved a generally high level of alignment with the acquis, although on a number of occasions measures have been adopted which led Poland away from the acquis in the field of commercial policy, rather than towards it. Poland has also developed a considerable administrative capacity.

Negotiations on this chapter have been provisionally closed. Poland has not requested any transitional arrangements in this area. Poland is generally meeting the commitments it has made in the accession negotiations in this field.

In order to complete preparations for membership, Poland's efforts now need to focus on finishing the process of legislative alignment, on taking decisive steps, as a matter of urgency, towards the renegotiation or abrogation of its bilateral investment treaties in full conformity with its EU membership obligations, on bringing its development policy in line with that of the EU as well as on ensuring that the capacity exists to fully implement and enforce the EC acquis in this field upon accession.

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