The Eastern Front

Published: 5 May 2003 y., Monday
In order to spur on trade, presentations of Polish exporters are gaining popularity. One such presentation is the Polish National Exhibition in St. Petersburg. Geographic proximity, relatively small competition from local manufacturers who are not capable of satisfying the growing demand for modern products and, contrary to common belief, the increasingly wealthy and demanding customer, are the advantages of the "eastern market." Why then does trade with the countries of the Commonwealth of Independent States (CIS) constitute as little as 7.1 percent of the global value of Polish export? The position of Polish companies is weakened by competition from the Western businesses that are perfectly aware of the perspectives which an active and strategically planned entry into Eastern markets can accomplish. Entrepreneurs from Germany, France and the United States, supported by the appropriate funds, first promote and then successfully sell their products in Russia and Ukraine or make direct investments there. The decrease in the amount of Polish agriculture and food products exported to Eastern markets has stemmed from the fact that big international concerns such as Nestlé, Danone or Unilever directly entered this strategic area. However, the issue of Western competition is only a part of the answer to this question and the possibility of development for Polish exporters on the markets in the former Soviet Union. One of the most serious difficulties Polish companies encounter is a considerable risk connected with signing commercial contacts with partners from the East who frequently appear to be insolvent and do not honor their contracts. According to Robert Stawski from the Promotion Chamber of the Polish Chamber of Commerce, businesspeople from Russia frequently do not understand the term "advance payment" and sometimes want to pay for the products only after they sell them. For obvious reasons, these terms are hard to accept for Polish manufacturers, which are mostly small and medium-sized companies. The state does not guarantee any protection for companies against situations in which partners from Russia, Belarus or Ukraine do not fulfill the terms of a commercial contract.
Šaltinis: warsawvoice.pl
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Developing nations in dire need

The financial crisis is having a serious impact on low-income countries. more »

EU drives G20 crisis action

The agreement was welcomed by the EU, which has led efforts to crack down on loose banking practices that caused the financial crisis. more »

AB Bank SNORAS group will acquire AB bankas “Finasta” and other companies of AB “Invalda” financial sector

On 31 March this year, the boards of AB Bank SNORAS and AB “Invalda” approved of the purchase and sales transaction of AB “Invalda” financial group's companies. more »

MEPs to vote to step up eco-labelling

MEPs will vote on Thursday 2 April on a first reading agreement on the voluntary EU Ecolabel (“EU flower”) system for environment-friendly products to become less costly and bureaucratic to use. more »

Credit rating firm says U.S. banking industry won't recover until 2010

The fourth quarter of 2008 was not so good for the banking industry, and the financial conditions of commercial banks and savings and loans is expected to further deteriorate for the rest of 2009 and the first part of 2010, according to LACE Financial Corp. more »

Europe's trade with developing countries: Who really benefits?

MEPs recently gave the green light to a new trade deal between Europe and Caribbean countries. more »

Verizon Business Deepens IP Capabilities That Enable Telework

New VoIP Features Boost Flexibility, Mobility, Cost Savings for Organizations Seeking to Untether Workers. more »

Revised GDP

According to the revised data, in IV quarter 2008, GDP at current prices made LTL 28578.8 million and against IV quarter 2007 decreased by 2.2 per cent. more »

Fisheries control: committee rewrites rules on recreational fishing

The EP Fisheries Committee rewrote the rules on recreational fishing in its consultative report, adopted Tuesday, on a proposed “control regulation” to ensure compliance with common fisheries policy (CFP) rules. more »

Trademark fees slashed

In a measure of the Union’s strong growth prior to the financial crisis, the demand for EU trademark rights has shot up in recent years, creating an unexpected budget surplus. more »