EU, Poland to liberalise trade

Poland, along with nine other countries in Central and Eastern Europe, will join the European Union in 2004, but in the meantime it will become easier for current EU food and drink producers to trade with the country following a recent agreement.

As European ministers debate the future of the 25-member European Union in Copenhagen, one of the countries lined up to join the Union, Poland, has taken a further step down that path with the announcement that it is to liberalise trade in food and drink products with the current 15 EU nations.

The Commission last week adopted the agreement signed by the two parties in October. Brussels said it would help boost trade between the EU and Poland in the run-up to the latter's accession to the Union in 2004.

The agreement covers a range of food and drink products made from agricultural raw materials such as chocolates and cocoa paste, biscuits and confectionery, pasta, spirits and vermouths, tea and coffee extracts. It will come into effect early next year.

Enterprise Commissioner Erkki Liikanen said: "I am pleased that we have now concluded an agreement that will further open up trade in food and drink products between the EU and Poland. This is an important step that will prepare our respective industries and consumers for enlargement."

On the EU side, the Commission is proposing duty free quotas for chocolate, biscuits and confectionery, together with the elimination of duties for some other products. In return, Poland will reduce by 30 per cent preferential duties applying to spirits, chocolate, biscuits and confectionery and by 50 per cent duties applying to vermouths. It will also eliminate duties for certain other products.

But the liberalisation will not stop there, as both parties have said they are willing to continue consultations to include other food products in the run up to Poland's accession.