Events GOING BACK TO THE NOTION OF NEIGHBOURHOOD: THE TWO COUNTRIES ARE VERY CLOSE TO EACH OTHER IN A GREAT NUMBER OF DOMAINS, FROM GEOGRAPHY TO LANGUAGE AND GENERAL MENTALITY. SO WE MUST TALK TO EACH OTHER AND FIND COMMON GROUND EVEN ON THE MOST DIFFICULT ISSUES.
close to USD260 million, compared with USD210 million in the full year 2016. In 2017 Poland became the fourth largest investor in Belarus. The Belarussian-Polish border coincides with the European Union’s border. What are the benefits for Belarus of being a neighbour of the Union? What role does Poland play in contacts between Belarus and the EU? Suffice it to say that the European Union is the second biggest trade partner of Belarus. The latest available data for January-November 2017 indicate that the value of Belarus-EU trade totalled USD12.8 billion. By September 2017 the total value of EU investment in Belarus has reach USD3.3 billion. We are interested in EU technology and investment. In return - and here I intentionally mention only economic factors, but the real picture is more complex - we have a good deal to offer. We are exporters of some much needed raw materials, petrochemical products and fertilizers. The industrial products and machinery we offer also have a competitive price-quality ratio. Tourism, including health and medical one, is also gaining in popularity. To further facilitate tourism we have decided to introduce visa-free regime for parts of Grodno and Brest regions, which border Poland. Finally, Belarus is a natural gateway for Western companies to a much larger market of the Eurasian Economic Union. It is true that in Belarus-EU relations there are issues with no simple resolutions. However, the present overall tendency is rather encouraging. After some time of talking “at” each other, we are moving towards a pragmatic open conversation with no taboo topics. That includes visa-free travel, human rights, international security, nuclear energy and much more. And there are tangible results. The EU has lifted quotas on Belarusian textiles. The year 2016 saw a resumption of Belarus-EU negotiations on our WTO accession. Belarus-EU Coordination Group started working in the same year. We have reached the final stage in the coordination of the partnership priorities for 2018-2020. And there is much more still to do. Consequently, the role of Poland is very essential here. Poland is a large and important European Union country that has a resolute voice and a very considerable influence on EU decisions, especially those concerning neighbour countries to the east of the EU border. Therefore, certainly, when I mention our relations with the EU, I imply relations with both the European institutions and individual member states, of which Poland in this respect is definitively one of the key actors. PM
This leads us to another question. Belarus is indeed a gateway to eastern markets for Poland. Do you feel that the Polish authorities are really interested in broader cooperation in this respect? Taking into consideration that the Belarusian market is not the biggest one to the east of Poland, trying to be a gateway for foreign companies in their effort to target the market of the Eurasian Economic Union is our natural strategy. Suffice it to say that the EAEU has more than 180 million consumers. We are certainly very well aware that it is not our wishes but pragmatic economic conditions that would encourage Polish companies to invest. This is why we are making every possible effort to provide foreign investors with what they require the most: stable macroeconomic conditions, good infrastructure, an active local business community, reasonably-priced PM
feedstock and energy, as well as qualified, disciplined and loyal workforce. Local authorities are more and more active in helping business. And there is an incentive of five-day visa-free travel through Minsk International Airport to facilitate initial contacts. In order to avoid sounding proofless, I’d adduce the World Bank’s 2018 Doing Business Index which ranks Belarus at 38th place in the world. A very competitive taxation system, with CIT at 18% and VAT at 20%, is even more liberal in our Free Economic Zones, where income tax is 0% for the first five years of operation and afterwards remains 50% lower than the general rate, and VAT is 0%. Similar, or even more favourable conditions are offered to businesses in small and medium towns, in the Hi-Tech Park, and the Great Stone Industrial Park. Any foreign investor may ask Belarusian National Agency for Investment and Privatization for assistance, and it will be granted for free. Polish business is considered, and rightly so, an expert in relations with the countries east of the river Bug. I dare say that the growing Polish investment figures in Belarus indicate a positive trend in the opinion of the Polish business community about investment climate in my country. As for official relations, I would also say that the tendency is generally positive. The number of government and parliamentary contacts, including high-level ones, is growing. Going back to the notion of neighbourhood: the two countries are very close to each other in a great number of domains, from geography to language and general mentality. So we must talk to each other and find common ground even on the most difficult issues. What prospects do you see for the development of our bilateral relations in coming years? We have lots to do. Starting with, however symbolic that may sound, bringing back our trade turnover to the USD3 billion level, to substantial growth of investment cooperation, and to coordinating infrastructural projects in the broad sense of this term, all to make our cooperation beneficial for Belarus, Poland and for the rest of Eurasia. Certainly, the work to determine the areas of concrete mutual interest and find best possible respective solutions is not the easiest task, but much promising. • PM
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