Study on Latin America, the Caribbean and Central and Eastern Europe: PotentialCase studyfor Economic Exchange Paper Kinga Brudzińska and Maya Rostowska Latin America and the Caribbean countries and Central-Eastern Europe – Potential for economic cooperation: Polish case study This paper was prepared as part of the research project “Study on Latin America, the Caribbean and Central and Eastern Europe: Potential for Economic Exchange”, EU-LAC Foundation, 2014. EU-LAC Foundation Fundación EU-LAC This Study has been financed by the EU-LAC Foundation. The EU- LAC Foundation receives funding from its member States and the European Union. The contents of this case study are the sole respon- sibility of the authors and can in no way be taken to reflect the views of the EU-LAC Foundation, its member states, or the European Union. DOI: 10.12858/0514en1c 2 Latin America and the Caribbean (LAC) occupy a marginal place in Poland’s foreign policy. Although there are no contentious matters in Poland’s relations with LAC, the region has never been an important area of interest for Polish decision makers.1 Geographic distance and the lack of traditionally close ties are among the main causes of the relatively low intensity of dialogue. Political and diplomatic relations LAC in Polish foreign policy: plus ça change… After Poland’s democratic transformation of 1989, the country’s foreign policy goals were redefined – including its policy towards the LAC region. Ideological issues, which determined bilateral relations during the Peoples’ Republic of Poland (Cuba and Nicaragua were its principal partners) were put aside and the relations with LAC countries were seen primarily through the prism of economic interests.2 Still, the region continued to take a back seat to other priorities, as foreign policy goals were naturally focused on NATO membership (achieved in 1999) and European Union accession (achieved in 2004). As an ambitious, large and relatively new EU Member State, Poland has been striving to join the club of heavyweight players in the European Union. As a result, in the last decade there have been very few public declarations with detailed policy goals explicitly towards the LAC region. The “Strategy of the Repu- blic of Poland towards Non-European Developing Countries,” was published in 2004, which referred to Polish relations with LAC. The strategy pinpoints “priority partners” such as Brazil, Mexico and Argentina, and “important partners” such as Chile, Colombia and Venezuela. The publication of the document the same year as Poland’s EU accession highlights the perception in Warsaw of European Union membership as a potentially valuable platform for developing Polish–LAC relations, which has provided new tools and opportunities to shape common EU policy towards the region.3 In the last decade, political dialogue between Poland and LAC countries has been characterised by low intensity high-level bilateral contact – largely within the framework of EU-Latin American relations and large multilateral summits (e.g., the UN General Assembly). For example, in 2008 Prime Minister Donald Tusk visited Peru and Chile on the occasion of the EU-LAC Summit in Lima (2008). During the summit, Mr Tusk also met with the Presidents of Brazil, Mexico and Colombia. However, the last official visit by a Polish President in LAC – to Brazil, Chile, Peru, Colombia – occurred in 2002. In fact, political-economic consulta- tions at the deputy ministerial level or at the level of political directors have become the prevailing mecha- nism in Poland’s relations with most Latin American countries.4 Today Poland maintains diplomatic relations with all 33 states in the LAC region, which are currently ma- naged through eight embassies, located in Argentina, Brazil, Chile, Colombia, Cuba, Mexico, Peru and Venezuela, as well as one Consulate General in Curitiba (Brazil). Poland also has 47 Honorary Consula- tes, which cover most of the LAC countries expect for Guyana, and some Caribbean islands.5 In return, eleven Latin American countries have embassies in Warsaw: Argentina, Brazil, Chile, Colombia, Cuba, Ecuador, Mexico, Panama, Peru, Uruguay and Venezuela. 1 The issue of human rights protection in Cuba and Venezuela is the exception; in: Poland-Latin America and Caribbean relations, Ministry of Foreign Affairs of Poland, http://msz.gov.pl/en/foreign_policy/other_continents/latin_america_and_caribbean/poland_latin_america_and_caribbean_1?searchCa tegory=Text&search=true 2 L. Miodek, Latin America in Polish Foreign Policy, in: A. Dembicz, Latin America in Polish Politics, The Center of Latin American Studies of the University of Warsaw, Warsaw 2009, p. 22. 3 Strategy of the Republic of Poland towards Non-European Developing Countries, Ministry of Foreign Affairs (MFA), Warsaw, November 2004, www.msz.gov.pl; For a broader analysis see B. Wojna, Polish Policy towards Latin America and Caribbean, Polski Przegląd Dyplomatyczny, PISM, no. 4 (32), July–August 2006, pp. 49–65. 4 Poland-Latin America and Caribbean relations, Ministry of Foreign Affairs of Poland, http://msz.gov.pl/en/foreign_policy/other_continents/latin_america_and_caribbean/poland_latin_america_and_caribbean_1?searchCa tegory=Text&search=true 5 A. Dembicz, Latin America in Polish Politics, The Center of Latin American Studies of the University of Warsaw, Warsaw 2009, p.9. 3 Previously, Poland also had embassies in Uruguay, Costa Rica, and Panama – but these were closed in 2008. Two Polish Consulate Generals in Brazil (in Rio de Janeiro and São Paulo) were also closed, in 2008 and 2013 respectively. However, the decreasing number of Polish diplomatic missions does not mean that Poland’s attention to LAC is shrinking. The closure of the embassies was a result of budgetary constraints but also due to new possibilities – including cooperation with other EU countries on the ground in terms of consular protection of Polish citizens or EU Delegations. Motors of cooperation between Poland and LAC Broadly speaking, it was the latest global financial crisis that created the conditions for Poland to look at LAC with more interest. Increasing awareness of the difficulty to fully overcome the negative effects of the crisis in at least the medium term in Europe has led to a growing conviction that the emerging economies will be important poles of economic growth. In recent years the LAC region has been increasingly seen as one such pole. In a document titled “Polish Foreign Policy Priorities for 2012-2016” published by Poland’s Ministry of Foreign Affairs (MFA) in March 2012, Brazil, Argentina, Mexico, Chile and Peru were listed as priority partners in the region, indicating their potential for cooperation in climate change and energy policy as well as in developing trade and investment relations6. Despite the fact it is not mentioned in the document, Colombia is also an important partner for Poland. This is due to the increasing internationalisation of the Colombian economy, and its interest in developing relations with Poland – which is likely to be further boosted since the signing of an EU-Colombia trade agreement in August 2013. The Polish diaspora (the so-called “Polonia”) in the region has always been an important element of the Polish-LAC relationship. An estimated 2 million people of Polish origin live in the region – with the biggest communities living in Brazil (ca. 80,000-3 million), Argentina (200-450,000), Mexico (10,000), Peru (10,000), Uruguay (10,000), Peru (5,000), Colombia (3,000), and Venezuela (3,000)7. Finally, it is worth noting is that in recent years defence has become an important area of cooperation. In 2009-2010, Poland concluded military-technological cooperation agreements with Peru, Colombia and Brazil. In 2010 a military attaché office was set up within the Polish Embassy in Brasilia. The increased interested in developing cooperation with LAC countries is due to Poland’s intentions to exchange the experience and information with other democratic countries in the area of defense. In addition, it aims at exploring new export opportunities for Poland’s defense industry. For example Brazil’s long-term reform of the armed forces and defense industry that include the purchase of e.g. the air defense, night vision devices, mortars or missiles, coincides with the Poland's Polski Holding Obronny (PHO)’s goal to find new potential exports to and cooperation in third country markets, including the South American markets.8 PHO is even interested in opening an office in one of the Brazilian cities.9 6 Foreign Policy Priorities 2012–2016, Ministry of Foreign Affairs of Poland, 29 March 2012, www.msz.gov.pl/files/docs/komunikaty/20120329/pr_ang_final.pdf 7 The biggest group of Polish descendants in Central America lives in Costa Rica, including Polish Jews, who create positive atmos- phere in bilateral relations, in: Association Polish Community, Polonia in the World, http://wspolnota- polska.org.pl/polonia_w_liczbach.html (accessed 18 February 2014) 8 The PHO is the biggest producer and supplier of arms in Poland and one of the biggest in Central and Eastern Europe. The majority shareholder in Polish Defence Holding is the Polish State Treasure,, in: Polish Defense Holding, About Us, http://www.pho.pl/about- us/ 9 The Ministry of Economy of Poland, Cooperation with Latin American countries, Brazil, pp. 7 http://www.mg.gov.pl/Wspolpraca+miedzynarodowa/Wspolpraca+gospodarcza+z+krajami+Afryki+Ameryki+oraz+z+Australia 4 EU accession – what impact on Poland-LAC relations? EU accession did not result