The results of foreign trade within the CEFTA are impressive

Stanislaw Lautsch-Bendkowski - commercial counsellor of the Embassy of the Polish Republic on Polish-Slovak commercial cooperation

What importance do you place on the Visegrad Four these days?

The current form of the Visegrad Group is already slightly different. The case is not just that the Group is made up of four states, extended to include Slovakia that was born out of the breakup of Czechoslovakia, but the positions of Poland, Czechia and Hungary have changed. These countries have joined NATO and gone a long way in their negotiations on integration into the EU. Slovakia, as we know, is lagging behind. The Visegrad Group emerged with the aim of cooperation among the member countries over the transformation period. Cooperation within the V4 would pose a certain step toward harmonisation and understanding on matter of internal changes in various areas in order to achieve integration as soon as possible. All these three nations are concerned in having Slovakia catch and join the first wave pack. Also, there is a great concern in having Slovakia admitted to NATO. Here the security of our part of Europe is at stake.

Will mutual declarations on the re-emergence of the V4 cooperation not just be in a verbal way? How do you view the chances of our countries' functioning within the V4?

Needless to say, verbal declarations might have at first been heard in the media, but this is shortly to be followed by concrete commitments. Cooperation within the V4 is not the only bloc we are cooperating in. I will mention, among others, the Central European Initiative, the ESCO, cooperation within the Baltic Sea countries. These areas of mutual cooperation. These areas of mutual cooperation are highly varied, with the V4 being one of them. The V4 cooperation is transitional in nature, as these structures will no longer be needeed once we have joined the EU.

How could the V4 cooperation be reflected in the economic sphere?

As regards economic cooperation within the V4, there is an economic agreement, the CEFTA, which, as we know, has extended its operation to include another states. Under the agreements, as early as 2001 should a free trade sphere come into being, and all this not only because the duty will have been cancelled, but also because the conditions for a free capital flow and labour force will have been prepared. Thus the economic cooperation among CEFTA member states is getting intesified. The results of foreign trade under the CEFTA are impressive. It is true that various countries stand to be gained various benefits. Slovakia has great benefits in trade with each CEFTA country, excluding Czechia. Poland, in turn, has a negative balance with each CEFTA country. It follows from the economic conjuncture and other external factors.

Can we thus not reckon on bigger economic "miracles" within the V4, since all the possibilities guaranteeing for mutual economic cooperation are being implemented within the CEFTA?

We must notice one thing It is a great success. Though this, of course, does not exhaust our possibilities. Other cooperation possibilities should be looked for, and here I would like to point out the possibility of mutual capital penetration. The market presence is the best guarantee for trade development.

Do there exist any successes in this area?

We have thus far had no capital conditions for investment. We cannot say of large-scale capital investment by Polish in Slovakia as it even fails to achieve $1,000,000. Nevertheless, this bears recalling that neither Poland nor Slovakia has an excessive capital to invest. But there are perspectives. The capital penetration could be taking place through a share in privatisation processes. A second option for our states rests in mutual industrial cooperation, e.g. in making final products. Yet another option is a cooperation within thir d market trade. Our products should not compete with one another on third markets but complement one another instead, thereby generating such offer as to compete with foreign countries.

Are there any concrete examples for this cooperation?

I know there are agreements around bearing on our mutual trade with Ukraine. Though I do not want to speak specifically because they are subject to a trade secret.

What possibilities do you view in the cooperation in various industries?

Is the cooperation in the automotive industry, which is evidenced by the commodity pattern for our trade. For example, Slovak automotive components are sold in Poland and vice versa. This concerns mainly foreign capital, for instance Volkswagen is supplied from Poland. From Slovakia, in turn, we observe high exports of sheets to produce cars in Poland. I believe there are large perspectives also in the area of energy supply. We will discuss this at the time of traditional international dubbed Javorina IV. As goes crude oil supply, large perspectives are cropping up for us, as are also for Slovaks under their cooperation with Ukraine. At his official visit to Ukraine, Polish Prime Minister Jerzy Buzek talked of crude oil supplies from the Caspian Sea via Ukraine to Poland. It is an interesting alternative even for Slovakia, as Slovakia exclusively depends on Russia in this field.

In what specific may Poland be instrumental in Slovakia's integration efforts?

We cannot help noticing Poland's support to Slovakia in her efforts to join NATO. In all official speeches by our statesmen the support for our neighbours can be heard of. Also Prime Minister Buzek during his official visit to Ostrava expressed support to Slovakia. Since March we are a NATO member, and an official support from a NATO member may also make a contribution toward even Slovakia shortly joining the North Atlantic structures. We are also concerned in having Slovakia join the OECD. Slovakia has thus far been prevented from joining the OECD by the political orientation of the Meciar governemnt. Now, however, economic matters are the issue. With respect to the entry into the EU, we are in a similar position. The tasks of adapting to the EU requirements lie ahead of us, with the restructuring of various industries being of importance. We are already wielding certain experience of restructuring entire economic industries in Poland, here I mean mining, metallurgy, agriculture, the defence industry and the social sphere. Poland also has extensive experience in negotiations and that's why I see a great chance for the Slovaks in organizing seminars where we could share our experience.

By Malgorzata Wojcieszynska

Slovak Trade FORUM