The official magazine of the American Chamber of Commerce in 3/2020

VOL III, No. 3 • ISSN 2545-322X

FOCUS: AmCham Summer Meeting with Deputy Prime Minister Jadwiga Emilewicz & US Ambassador Georgette Mosbacher...... 1 Photo coverage of the event..... 4

IN JULY, AMCHAM HELD ITS FIRST IN-PERSON MEETING SINCE MARCH. DEPUTY PRIME MINISTER AND MINISTER OF DEVELOPMENT JADWIGA EMILEWICZ , AND THE US AMBASSADOR TO POLAND GEORGETTE MOSBACHER MET MEMBERS OF THE AMCHAM ADVISORY COUNCIL AT THE WARSAW MARRIOTT HOTEL. AMCHAM.PL QUARTERLY Vol. III, No. 3 FOCUS FOCUS: POLAND-US PARTNERSHIP

HANDS ACROSS THE OCEAN THERE IS MOMENTUM FOR TIGHTENING POLAND-US ECONOMIC COOPERATION

In July, AmCham held its first in-person cooperation. This year, there will be sig - and the unemployment rate will not be meeting since March. The guest speak - nificant breakthroughs in key areas of higher than 7-8 percent. ers were Jadwiga Emilewicz, Deputy cooperation, including national security The Deputy Prime Minister noted that Prime Minister and Minister of Develop - and civilian nuclear power. Ambassador the Polish economy's relatively good ment, and Georgette Mosbacher, US Mosbacher said that the is shape for 2020 would not be possible Ambassador to Poland and Honorary working hard to help Poland achieve en - had it not been for government aid pro - Chair of AmCham Poland. ergy independence by the end of 2022, grams that delivered financial assistance They met the representatives of Am - which will turn the country into a re - to troubled companies to help them Cham companies who are also members gional energy hub for Central and East - maintain cash flow and avoid layoffs. of the AmCham Advisory Council. The ern Europe. In addition to the aid programs, the gov - agenda was the economic cooperation ernment launched several investment between Poland and the US; its poten - THE BLOW OF THE PANDEMIC tools to help companies restructure their tial and areas that will benefit from im - The Polish government is fully aware of operations to better adapt to the cur - provement. how critical foreign direct investment is rent business landscape. These invest - for the development of the Polish econ - ment tools include a new tax incentive THE AMBASSADOR'S BRIEF omy, especially now, as the Covid-19 pan - for investors planning to purchase au - Ambassador Mosbacher thanked Deputy demic takes its toll on Polish firms. "Over tomatization and robotization solutions. Prime Minister Emilewicz for her deep 40,000 small and medium-sized compa - The tax incentive is structured similarly understanding of the specifics of Ameri - nies disappeared from the Register of to the incentives that are available to in - can investors in Poland. She praised the Commercial Entities in Poland almost vestors in R&D. "The main goal of the minister's involvement in facilitating the overnight after the pandemic hit the government is not allowing Poland to exemption of American investors from country," minister Emilewicz said. lose the high economic position it en - the Anti-Overtaking Bill, a new legisla - However, as the economy moves on to joyed for many years, that of one of the tion to prevent hostile acquisitions of the recovery phase, more and more com - most popular places for foreign direct in - Polish companies by investors outside of panies are applying to be included in the vestment in the EU," Minister Emilewicz the European Union. "The atmosphere register. "This is why I'm quite optimistic said. for business is still very good in Poland about where the Polish economy will be She added that the government had un - thanks to the Deputy Prime Minister, by the end of 2020," minister Emilewicz dertaken several legislative initiatives to among others, and I do have to applaud said. improve conditions for investors across her because she has been a big part of According to government forecasts, the the country well before the Covid-19 pan - keeping that going," Ambassador Mos - Polish economy will be the least affected demic. These initiatives have made it eas - bacher said. by the Covid-19 pandemic among all the ier for companies reinvesting in Poland The ambassador said that Polish-US rela - EU member states. Government econo - to obtain public aid such as tax deduc - tions have never been stronger, as both mists do not expect the economic drop tions and incentives, compared to com - countries are engaged in extending their in 2020 to exceed 4.6 percent of GDP, panies investing in the country for the

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first time. The government also amended twenty years ago." before this happens, the government the law on investor tax havens, known as Because of this, the government is now must consult with local communities to Special Economic Zones (SZEs). Investors evaluating the possibilities of having the obtain their consent to developing wind can now choose factory and facility loca - production of some drugs and PPE "near- farms closer to where they live. "There tions in any part of the country, regard - shored" to Poland. Engaged in this are social tensions regarding this frame - less of the geographical spread of the process are government-affiliated agen - work," Deputy Prime Minister Emilewicz actual SEZs. cies, the Polish Development Fund, and said. the Polish Agency of Trade. "We are dis - The government is planning three major REGIONAL FOCUS cussing this issue with the pharmaceuti - investment projects in onshore power The minister added that there are re - cal sector to find out what items may be farms by the Baltic coast. One is to be "a gions in Poland that need new invest - produced in Poland and what items fully private investment," while state- ment to transform into a developed should be produced domestically," minis - owned companies will complete the economy. She gave the example of ter Emilewicz said. other two. The government plans on Upper Silesia, a region which "comes to The minister explained that the govern - bringing the projects to the market mind naturally when we think about eco - ment's goal is to have foreign and Polish within ten years. nomic transformation." Silesia is an ex - companies produce those items in Minister Emilewicz regretted that the ample of a successful transformation Poland. "What we want is that the pro - construction of wind farms has been a that began with just a few investors land - duction facilities be in Poland, including slow process in Poland and that Ameri - ing their projects in the region. Those chemical companies which produce com - can companies with the right technol - few attracted further investment, and ponents for the pharmaceutical indus - ogy, experience, and know-how have not today the region, which for decades used try," minister Emilewicz said. been as included and involved as they to depend on coal mining and heavy in - should have been. "We need the right dustry, has more jobs in IT than coal min - ENERGY INDEPENDENCE technology, and we need to have good ing. Deputy Prime Minister Emilewicz said partners if we are to make good use of There are other regions of Poland which that the government is ramping up ef - the technology," the minister said. "Tak - would also greatly benefit from such in - forts to make Poland energy independ - ing into account the presence of US in - vestment, the minister said. Apart from ent by the end of 2022 and a regional vestors in Poland and the good track Eastern Poland, there are some "pockets energy hub in Europe, a task in which the record of their investments, I can hardly of economic underdevelopment" in the US has been assisting Poland for many think of any better technology partners Wielkopolska region, where coal-pow - years. "We appreciate the work with the than American companies." ered power plants will soon be closed US administration in energy security," and thousands of workers will start look - minister Emilewicz said. SHARED SERVICES SECTOR ing for new jobs. The government plans She explained that the modernization of The modernization of the nation’s power "to steer investments in the infrastruc - the Polish power system is a must in system and building broadband internet ture" in Wielkopolska, in hopes that terms of climate protection, and is "a in Poland’s eastern parts are not the only other investors will follow suit. The min - matter of common sense." 80 percent of strategic reforms the government has ister urged American companies to plan the system's power generation relies on begun. They would also like to see the their next big investment projects in "re - coal, what the minister described as a further contribution of shared services to gions that need heavy investments to be - "heritage of the post-Cold War period," the generation of the value of Polish ex - come as attractive to live in as other adding that "there is no other country in ports. The sector of shared services has parts of Poland." Europe except Poland which has to do so now become the top sector when it

NEARSHORING SUPPLY CHAINS Deputy Prime Minister Emilewicz said that the pandemic revealed shortcom - ings in global supply chains of pharma - “We want to come up with a list of such ceuticals and health equipment. For example, the pandemic showed personal investment projects which are critical in protection equipment (PPE) and certain Poland. You are our partners if you have drugs to be essential for the stability of the nation's health system. However, such projects! border closures can easily mute the sup - ply chain from Asia and economic shut - downs freeze global trade. The only plausible solution to guaranteeing the much big work to get the transformation comes to generating the highest portion country’s supply is to produce those done." of Polish exports across all sectors of the items domestically, but this is currently The government is working to change economy, even surpassing the automo - beyond Poland's capacity. "Unfortu - the regulatory framework for onshore tive sector, which for years had been nately, neither personal protection wind farms to attract new renewable en - number one. The government is now equipment nor even simple drugs such as ergy investors. "We will shorten the re - consulting with the industry organization paracetamol are produced in Poland or quired distance to residential areas The Association of Business Service Lead - the EU," Emilewicz said. "Their produc - beyond which wind farms must not be lo - ers to learn how to boost the sector's ex - tion was relocated from Europe to Asia cated," the minister said. She added that porting potential and attract more

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investors in shared services centers from Another source of money for infrastruc - Recovery Fund," Minister Emilewicz said. the automotive industry. Such new in - tural investment projects is the Polish "Let us know because we want to come vestments "would greatly complement Development Fund. This fund is aimed at up with a list of such investment projects the existing auto manufacturing sector expanding the IT capacity of the Polish which are critical in Poland. You are our and boost its potential," Minister economy and financing the construction partners if you have such projects!" Emilewicz said. of broadband internet infrastructure. "The focus is especially on the eastern A BROADER LOOK FINANCING INVESTMENT PROJECTS parts of the country, as the internet in - Closing her address to the AmCham Advi - As the modernization of the Polish frastructure there is underdeveloped… sory Council members, the Deputy Prime power system picks up speed, the gov - this is one of our central goals," minister Minister said that the Covid-19 pandemic ernment is doing its best to ensure the fi - Emilewicz said. The minister added that has transformed many value chains in nances to support every step. Good Poland had used government-controlled the Polish economy and globally. How - news has come from the informal capital companies to develop strategic areas of ever, this process had already been un - of the EU, Brussels, where heads of EU the economy in the past. However, the derway since before the pandemic. The member state governments recently met incumbent government is pioneering a pandemic has provided the opportunity to discuss the details of the long-term EU new approach that involves considering to reconfigure and strengthen economic budget. Poland will be the third-largest private investors as partners in develop - relations between the US and the EU, es - beneficiary of EU financial aid from 2021- ing these strategic economic areas. "We pecially when it comes to the collabora - 2027, receiving billions of euros from the try to identify key investment projects tion between the US and Poland. "We EU Transition Fund and the Covid-19 eco - that are of paramount importance to the would particularly like to strengthen our nomic aid program called the Recovery Polish economy," the minister said. cooperation in broadly understood Fund. Deputy Prime Minister Emilewicz "Those investment projects are going to telecommunication, IT, energy, and avia - said that the government will be able to be undertaken by the public sector, but tion...We look forward to continuing our use money from both funds to finance we are also open to private investors." good cooperation with American part - strategic programs for the economy. The The minister said that private investors ners," the minister said. Transition Fund is meant to support the should contact the Ministry of Develop - development of projects to combat cli - ment about investment projects they are mate change and the Polish government planning, "and perhaps some of them plans to use these funds to help trans - are so important for the Polish economy form power generation from coal to gas. that they can get financial aid from the

JADWIGA EMILEWICZ GEORGETTE MOSBACHER

Appointed Deputy fairs at the Chan - and has begun doc - Appointed US Ambas - Mosbacher founded Republican National Prime Minister of cellery of the Prime toral studies at the sador to Poland in the the New York Center Committee's Finance Poland in 2020. She Minister. In 2009, she Jagiellonian Univer - summer of 2018 and for Children, which as - Committee and was had been appointed became the Director sity's Department of has been President of sists abused children the first woman to Minister of Develop - of the Museum of the International and Po - Georgette Mosbacher and their families, and serve as the General ment in 2019 after People's Republic of litical Studies. She re - Enterprises, Inc., a has served on the Chairman of the Re - three years of service Poland in Kraków. She ceived an Oxford business and market - boards of numerous publican Governors as Deputy Minister of is a Councilor in the University scholarship ing consulting com - charities supporting Association. Ms. Mos - Development, and regional assembly of and a scholarship pany in New York veterans and their bacher authored two earlier as Minister of the Małopolskie from the American City, since 1992. She families. She is a Fel - motivational books Entrepreneurship and Voivodeship and Vice- Council on served as CEO of low at the Foreign for women, earned a Technology. Before Chair of the Commis - program by Dräger Borghese Inc. from Policy Association Bachelor of Science that, she served as sion for the , Zeit- 2001 to 2015. In 2016, and a board member from Indiana Univer - Undersecretary of Innovation and Mod - Stiftung Ebelin und she was confirmed by at Business Execu - sity, and received State in the Ministry ern Technologies. Gerd Bucerius. She the US Senate as a tives for National Se - many awards recog - of Development. Emilewicz graduated also held the post of Member of the curity and the Atlantic nizing her humanitar - From 1999–2002, she from the Institute of President of the Bet - United States Advi - Council. She previ - ian and worked in the Depart - Political Studies at the ter Poland Founda - sory Commission on ously served as a co- entrepreneurial con - ment of Foreign Af - Jagiellonian University tion. Public Diplomacy. chair of the tributions.

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AmCham in Warsaw Face to face with Deputy PM

In July, AmCham held an exclu - bassador Georgette Mosbacher. sive summer meeting with The venue was the Warsaw Mar - Deputy Prime Minister and riott Hotel. It was a live, in-per - Minister of Development son meeting held with all Jadwiga Emilewicz, and US Am - Covid-19 precautions.

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1. The meeting is about to begin. 2. Tony Housh, AmCham Chairman (Northrop Grumman); Jadwiga Emilewicz, Deputy Prime Minister, Minister of Devel - opment; Georgette Mosbacher, US Ambassador to Poland. 3. Anita Kowalska, AmCham; Tony Housh; Marta Pawlak, AmCham; Stacy Ligas, KPMG Poland. 4. Fabio Pommella, Whirlpool Poland; Mariusz Wawer, Alain Simonnet, 3M Poland; Marek Szydłowski, AmCham Vice Chairman (Integer.pl SA). 5. Małgorzata Wadzińska, Gabriel Ragy, Procter & Gamble . 6. Andrzej Dziukała, Janssen Cilag Poland; Krzysztof Adamcewicz, Roche Polska. 7. Jolanta Jaworska, AmCham Vice-Chairman (IBM Poland); Tisha Loeper-Viti, US Embassy in Warsaw. 8. Adam Błażeczek, Artur Łakomiec, Gemini.

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