In the margins of the EU FAC Trade Council, Minister Nowak met with outgoing German Minister for Economic Affairs and Energy Peter Altmaier and French Minister for Trade Frank Riester. He also held separate talks with European Commission Vice-President Valdis Dombrovskis.

WTO reform

EU trade ministers met, among other things, to discuss directions for reforming the World Trade Organisation on the eve of the 12th WTO Ministerial Conference, which will take place in Geneva from 30 November to 3 December 2021. This is the body that takes the most important decisions on the operation of the World Trade Organisation. Some of the agreements reached at the conference will have legal effects for the Union, while others will be in the form of 'non-binding instruments' (NBI) that must be approved by the Council beforehand.

As Minister Nowak points out

As a multilateral trade system based on transparent and fair regulations, the WTO is very much needed today. Only the effective functioning of this system guarantees predictability and stability of conditions for international exchange. And this in turn helps us achieve sustainable economic growth, create innovations and new jobs.

He adds:

Poland in the Central European region has become an engine of economic growth. In the last 20 years in the EU we have achieved the highest increase in the share of EU GDP and we are a leader in reducing unemployment and increasing employment in industry. In the EU, it was also Poland that developed its trade potential the most during the pandemic - not only did it achieve a record surplus, but it also increased its share in world trade the most among the Member States (by 0.14 percentage points). We want to maintain this favourable trend and strengthen the trade potential of Polish companies. Therefore, an efficient WTO is in Poland's interest.

The World Trade Organization is in crisis. The fundamental source of problems in the functioning of the WTO is the change in the geometry of economic potentials in the world economy. The system designed after World War II no longer corresponds to the new realities of the balance of power in the global economy. Since then, the role and importance of large emerging economies (e.g. China, India, Brazil) in global flows of goods, services and capital has clearly increased. Today, not two but three global economies are responsible for half of the value of GDP at purchasing power parity (PPP). China has joined the United States and the European Union. They form the three most important hubs of global value chains and are the centres for stimulating trade in their regions.

We are in favour of the necessary modernisation of the WTO. The reforms must concern transparency, the dispute settlement system, and the approach to development issues. Only a thorough modernisation of the WTO will allow it to maintain the role for which it was created - that of a trade stabiliser.

- Minister Piotr Nowak postulated during the EU Foreign Affairs Council. 

Transatlantic relations with the USA

The second important topic of the meeting of the EU ministers for trade was the economic relations with the USA. This cooperation gains particular significance in the context of counteracting the imposition of narratives on technological matters by countries with non-market economies.

A strategic partnership with the US is key to shaping the international order and creating a common response to the threats from China and Russia. We want the Trade and Technology Council (TTC) to be one element of building such trust in the trade and economic sphere. We also hope that the dialogue of the Trade and Technology Council will help to eliminate existing barriers for EU companies to access the US market

- emphasises the head of the Ministry of Development and Technology.

How do EU FTAs work?

Another theme discussed by the FAC Trade Council was the report on the implementation and enforcement of EU free trade agreements (FTAs), which was published on 27 October 2021. This is a comprehensive overview of all tools and instruments for FTA implementation and enforcement. It focuses on 4 priority areas: FTA implementation, SME support work, barrier removal and dispute resolution. The report covers 2020 and the first half of this year. Statistics on trade in goods are for 2020 and in services for 2019. The report replaces and combines two earlier reports on the implementation of free trade agreements and a report on trade barriers. This report shows that the share of the EU's preferential trade with FTA partners in total EU foreign trade was 32%, but including the Trade and Cooperation Agreement with the UK, the agreement with Vietnam and others still pending the share rises to 45%.

According to Minister Nowak, trade agreements signed by the EU with third countries should contribute to strengthening the EU economy and raising the standard of living of its citizens. This function is particularly important in connection with the efforts to revive our economies after a pandemic.

Talks with German and French Economy Ministers and Commissioner Dombrovski

Starting his mission at the Ministry of Economy, Minister Piotr Nowak met with outgoing German Minister for Economic Affairs and Energy Peter Altmaier. Minister Nowak thanked his German counterpart for the years of cooperation, which have brought an unprecedented intensification of Polish-German economic cooperation. According to preliminary results of the German Statistical Office published in February 2021.  Poland for the first time became Germany's fifth most important trading partner behind China, the Netherlands, the USA and France. With French Minister Delegate for Trade Franck Riester, Minister Nowak discussed matters related to the French Presidency of the EU Council. In turn, the meeting with the Vice-President of the European Commission Valdis Dombrovski was devoted to current issues on the Council's agenda.